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New Strategic National ICT Vision in Armenia is required UITE, May 2008 ICT Industry Overview Before 1991 Armenia was regarded as a Silicon Valley of the former Soviet Union. The main industry sectors were: Mechanical engineering Electronics Chemical industry Energy industry
UITE, May 2008
Before 1991Armenia was regarded as a Silicon Valley of the former Soviet Union.
The main industry sectors were:
Today ICT industry is one of the most dynamic and promising sectors of the economy
nominal GDP - 1.3%
About 200 Companies with 6000 employees, of which 72% are technical specialists
Major specializations include:
ICT Industry Development Strategy of the Armenian Ministry of Economy (2001)
“the current situation inICT industry in Armenia may be characterized as an aggregate of mainly partial achievements, the results of which in terms of the global market can not be considered as significant”*
New ICT sector development concept paper (2007)
Short-term (1-3 years):
Build world class ICT infrastructure to support Armenian ICT industry and information society development
Mid-term (3-5 years):
Strengthen Armenia’s ICT infrastructure and ensure the presence and penetration of “Armenia ICT brand” in the global market
Long-term (5-10 years):
Achieve full “Armenia ICT brand” penetration in global markets and particularly in targeted high-growth market segments. Contribute to the growth of ICT, increase in sector revenues and development of knowledge-based economy through ICT infrastructure and Information Society development.
Information society and IT Industry growth target indicators:
Design, develop and build world class ICT infrastructure serving major regions, cities, government & private industry
Develop & launch targeted programs aimed at increasing Armenia IT graduates and workforce.
Equip and operate national Tele-Centers serving citizens in key Armenian regions & towns.
Build Armenian Techno-Park supported by world class ICT, municipal infrastructure and services
Select, develop and rollout
E-Government pilot projects
(Rollout 3 pilot projects in 3 years)
Establish Armenian Software Engineering Competence Center to certify & train Armenian software developers to ensure compliance with global Capability Maturity Model Integrated (CMMI) standards
Develop , design & rollout world class strategic marketing & promotional campaign to position “Armenia brand” in targeted high growth IT markets.
Replicate EIF business incubator model and establish university-based technology transfer centers (TTC) to stimulate IT innovation & product development
Establish Armenian IT Enterprise Development Fund to promote private IT companies; attract foreign direct investment & venture capital to develop and commercialize IT innovation & product development
Main Strategic Directions:
Education and workforce development
(strategic goal: the number of qualified ICT specialists is 10000)
Legal framework/collaboration with state bodies
(strategic goal: ICT is a priority industry in Armenia in practice)
Development of ICT/High Tech sphere/Formation of Information Society
(strategic goal: higher level of use of ICT in other businesses)
Development and enhancement of the association
(strategic goal: UITE is an influential and powerful institutional organization serving the interests of its member enterprises)
The main problems that hinder Armenian ICT industry development:
The lack of authorized state body responsible for Information Society development
Limited financing for ICT sector
Insufficient interaction among the entire scope of the sector’s infrastructure, including the National Academy of Science, industry, state ministries and the private sector
Low level of government investments in R&D
Excessive Custom and Tax administration (applications of “estimated prices” custom clearance method for ICT goods for importing and VAT levy at the border for importing)
The lack of tax benefits for educational investments
The lack of qualified ICT specialists
AMD appreciation (in recent years the AMD has appreciated on average by 20%)