This is a best prospect industry sector for this country. Includes a market overview and trade data.
Armenia has a burgeoning information and communications technology (ICT) sector. Several international companies employ Armenians specializing in software development, industrial computing, electronics, and semiconductors. The sector has recorded significant growth in recent years and seen a continuing expansion of new companies and hiring as Armenia continues to increase its presence in global value chains. The number of firms actively operating in the ICT space exceeds 1,000, employing more than 20,000 workers, and yielding more than one billion dollars annually. The ICT industry is growing at 20 percent, which may increase further driven by the arrival of thousands of new foreign high-skilled IT workers following Russia’s further invasion of Ukraine.
The Armenian government has played an active role in supporting the development of the ICT industry. It has worked in close cooperation with international donors, including the United States, to improve the competitiveness of Armenian ICT firms in the global marketplace. Since 2019, the Ministry of High-Tech Industry has exercised oversight over the development and implementation of the government’s policies and strategies with respect to ICT and related industries.
Armenia bills itself as a top destination for tech-related investment owing to a historical deep bench of talent in mathematics and the natural sciences, good and growing levels of English proficiency, several good university programs, competitive labor and operating costs, government support for the sector, a strong diaspora network, and existing relationships with large multinational companies as part of global value chains.
To ensure Armenia continues to have a rich stock of highly qualified talent, several local universities and research institutions have increased their offerings of programs relevant to the ICT sector. Some have opened research laboratories and maker spaces in cooperation with international partners, local industry associations, and leading U.S. multinational companies, including Microsoft, IBM, and National Instruments. These ventures are typically established in Yerevan, but are also present in secondary cities, including Gyumri and Vanadzor. Linkages between these establishments and U.S. universities and research institutions are growing.
According to recent industry reports, approximately a third of ICT firms in Armenia claim some foreign ownership. More than half of the foreign firms in the ICT sector in Armenia are from the United States. International companies account for roughly half of all employees in the sector. Foreign branches tend to be development centers for parent companies.
Successive governments have thrown broad support behind the develop
Software, web design and development, mobile application development, system design, and IT
Armenia has hosted a number of major industry events that draw international attention. The 2019 World Congress on Information Technology drew an estimated 2,500 participants from over 70 countries. The Foundation for Armenian Science & Technology hosts an annual Global Innovation Forum that attracts major speakers. The Enterprise Incubator Foundation, a local industry group, hosts an annual ArmTech conference, while another industry group, the Union for Advanced Technology Enterprises, organizes a regular DigiTec conference. In recent years, Armenia has hosted an Engineering Week to develop the engineering and industrial component of Armenia’s ICT industry.
Educational establishments and innovation districts are opening new opportunities in the ICT industry by cultivating talent and building ecosystems wherein new companies can find a foothold.
As Armenia seeks to move up the value chain and remain competitive within the ICT realm, a number of emerging fields and opportunities are coming into view. To the extent Armenia can be successful in developing new technologies, it can become a more desirable destination for contract research and development efforts. Armenia is in a good position to continue to provide such services, including software testing and prototyping, to customers abroad. Specific sub-sectors acknowledged as having potential include artificial intelligence pure research (and eventually engineering), semiconductor design and electronic design automation, and data science.
- Ministry of High-Tech Industry
- Ministry of Economy
- Armenian National Interests Fund (ANIF)
- Enterprise Armenia
- Statistical Committee of the Republic of Armenia
- UNCTAD Investment Policy Review of Armenia
- WTO Trade Policy Review: Armenia 2018
- Enterprise Incubator Foundation
- Armenian ICT Sector Annual Report
- Guide to Armenian Information Technology Companies
- Gyumri Technological Center
- Vanadzor Technological Center Establishment Program
- Microsoft Innovation Center
- Armenian National Engineering Laboratories (ANEL)
- IBM Innovative Solutions and Technologies Center
- DigiTec Expo
- ArmTech Congress
- TUMO Center for Creative Technologies
- American Chamber of Commerce in Armenia
- Spyur Information System