Concept of Innovation Economy Formation Starting Strategy

Republic of Armenia

Ministry of Economy

Preface

• In 2006 the legal base of support to innovation activities in Armenia was set up by adopting the Law “On State Support of Innovation Actvities” and by a series of Government Decrees. The E-Society Formation Concept Paper was approved as well.

• A number of state and private business and educational structures (Enterprise Incubator Foundation, IT Center in Gyumri, Viasphere Technologocal Park, research universities and others) are already set up in Armenia that directly or indirectly support innovation activities and innovation companies. A number of comprehensive school programs are also currently in realization in cooperation with leading technological companies, such as Microsoft, HP and Intel.

• In 2011 the Government of RA developed a Concept Paper to define the integrated mission of innovation economy formation and to develop a comprehensive strategy that will contribute to the elaboration and effective implementation of committed steps towards our goals.

STRATEGIC HORIZONS OF INNOVATION NATIONAL SYSTEM FORMATION

HORIZON 1.

Till 2014

Development of existing resources

HORIZON 2. Till 2017Scaling the measures and capacitiy enlargement

HORIZON 3. Till 2020 Armenia a Global center for R&D

VISIONArmenia as R&D center

of supranational corporations

Goals

Formation of Innovation national system

Measures (12 basic )

Legal reforms undertaking (standards, metrology, free economic zones)

Setting up and operating innovation support financial and physicall infrastructure (technology parks, venture fund)

Development of business capacities and business support structures operating (grants for ideas and innovation cofinancing , sales missions at target markets )

Modernization of educational system through particular large-scale projects (National Engineering laboratories at Polytechnical University)

Start up of System-forming measures

Goals

Overall introduction / adoption of international standards in the private sector

Provision of engineering education system equivalency to international standards

Overall operation of system-forming establishments (National Science Laboratory, Armenian Center of Excellence in Oncology (ACEO), Synchrotron Light National Source (CANDLE))

Development of newly established innovation companies

Modernization of existing companies through local or imported technologies adoption

Undertakings Focus

Involvement of middle-scale technological global companies

Scaling the measures

Goals

Internationally recognized Engineering University, National Science Laboratory

Armenia ranked among leading countries implementing R&D activitiies , such as Israel, Singapore, Ireland

Globalization of Armenian technological companies

Undertakings Focus

Targeting leading technological global companies

Support to Armenian technological companies globalization

The States Input

NATIONAL INNOVATION SYSTEM

Legal Base

Education

Phisycal InfrastructureFinancial Infrastructure

Business Capability

System-Forming

Undertakings/ Establishments

The strategy of innovation system development implies application of systematic approach

Undertakings in the framework of the strategy will be addressed to the pillars of the National Innovation System

Some undertakings are system-forming by their nature and due to their capacity and scale refer to the system in the whole or to some of the pillars

Today several projects aimed at the creation and improvement of National Innovation System have already started, that are presented below

Pillars of the National Innovation System

UNDERTAKINGS IN THE FRAMEWORK OF INNOVATION STRATEGY

(Projects being implemented with participance of the Ministry of Economy of RA)

Reformation of Quality National System

National Science Laboratory

Armenian Center of Excellence in Oncology

Armenian National Engineering Laboratories

(ANEL)

“CANDLE” Project

Venture FundGrants for ideas and

innovation cofinancing

Undertakings of E-society – Broadband Internet and intergovernmental net,

Personal computers for all, etc.

Sales office at USA “Silicon Valley”

Free Economic Zones “ARABKIR” (Institute after S.

Mergelyan) , “MALATIA” (MARS Factory)

Legal Field

Education

Phisycal Infrastructure

Financial Infrastructure

Business Capability

System-Forming Undertakings

Higher labour productivity and development of capabilities (promotion

of international standards implementation)

Gyumri Technological Park

Microsoft Innovation Center

Armenian-Indian ICT Education Center, Cisco Regional

Educational Center

VALUE CHAIN OF INNOVATION NATIONAL SYSTEM STRATEGY IMPLEMENTATION

Support Instruments

Environment and System-forming Undertakings

Anticipated Final Result

Intermediate Result

Creation of Financial Infrastructure (Venture Fund)

Creation of Technology Parks, Business Incubators and Free Economic Zones

Improvement of Engineering Education Reform of Quality National System

Establishment of Scientific-Research Excellence Centers (National Science Laboratory, Oncology Center, CANDLE)

Tax Incentives in Free Economic

Zones

Instruments for Export Support

Grants for ideas and innovation cofinancing

Business Incubation

Cofinancing of System-forming

Undertakings

Young talents (human capital)

Intellectual Property

(knowledge, technologies)

Newly founded companies, new

products and services

Global Technological Off-shore Companies

(orders, branches)

Global Technological Armenian Companies

Modernized local companies