In contrast to the prevailing approach in many Eastern Partnership (EaP) countries, Armenia’s innovation ecosystem has largely been driven by the private sector, rather than public agencies. This unique bottom-up dynamic is evident in the flow of policy development, where initiatives and demands often originate from within the entrepreneurial community, eventually attracting public sector involvement.
The Armenian diaspora has been, and continues to be, a driving force in the development of the local ecosystem. The US-based Armenian tech community, in particular, has played a crucial role in connecting Armenia with the US market, particularly Silicon Valley. This relationship has provided Armenian startups with access to valuable knowledge, best practices, and market opportunities, while also enhancing the Armenian ecosystem’s reputation within the US tech industry.
The scientific heritage and strong focus on education and innovation, as well as the unique educational initiatives in tech-related fields have successfully contributed to the innovation potential of an ecosystem that has already produced two unicorns, despite a population of less than three million. Over the past decade, it has been transformed from a group of small, disconnected cells into a functioning, cohesive entity. However, numerous gaps and challenges persist.
Among the key challenges faced by the Armenian ecosystem are the absence of a national innovation strategy, limited investment literacy, a weak science-commercialization connection, an underdeveloped national brand, lack of centralized data monitoring and analysis, and limited networking with European ecosystems.
