Public Financing for Public Financing for Innovation and Infrastructure: Innovation and Infrastructure:

EIF Case StudyEIF Case Study

Dr. Bagrat YENGIBARYANDr. Bagrat YENGIBARYAN

Director EIFDirector EIF

Kiev, April 2008Kiev, April 2008

Enterprise Incubator FoundationEnterprise Incubator Foundation• Non-profit business development and Non-profit business development and

incubation agencyincubation agency• Established in 2002 by the Government of Established in 2002 by the Government of

Armenia within the World Bank’s “Enterprise Armenia within the World Bank’s “Enterprise Incubator” Project to support the Incubator” Project to support the development of Armenia’s IT industry development of Armenia’s IT industry

• Mission is to stimulate economic growth of Mission is to stimulate economic growth of Armenia by assisting the local IT enterprises Armenia by assisting the local IT enterprises in business and skills development areas in business and skills development areas and stimulating entrepreneurial activity and and stimulating entrepreneurial activity and start-up formation in the country. Increase start-up formation in the country. Increase competitivnes of Armenian technology competitivnes of Armenian technology companies.companies.

Infrastructure for InnovationInfrastructure for Innovation

This is an evolving concept that has This is an evolving concept that has reached different levels across the reached different levels across the world, reflecting the different stages world, reflecting the different stages of development. Technological and of development. Technological and other change is rapidly transforming other change is rapidly transforming the environment in which the the environment in which the Innovation is developed. We should Innovation is developed. We should promote it at the national level. To promote it at the national level. To put the potential of knowledge and put the potential of knowledge and ICT at the service of developmentICT at the service of development

Main DirectionsMain Directions

Business Business DevelopmentDevelopment

Skill Development Skill Development

Infrastructure Infrastructure ServicesServices

Business DevelopmentBusiness Development

FDI-Export Promotion, FDI-Export Promotion, Representative OfficesRepresentative Offices

Start-up Formation and Venture Start-up Formation and Venture Financing, STEP ProjectFinancing, STEP Project

Business and IT Project Management Business and IT Project Management ConsultancyConsultancy

Country PromotionCountry Promotion

FDI-Export Promotion, FDI-Export Promotion, Representative OfficesRepresentative Offices

Alcatel, Microsoft, Alcatel, Microsoft, SUN Microsystems, SUN Microsystems, NI, HP, GAID Youth NI, HP, GAID Youth ICT Centre, etc.ICT Centre, etc.

Representative Representative Offices in Canada Offices in Canada and Austria and Austria

InternshipsInternships

Start-up Formation and Venture Start-up Formation and Venture Financing, STEP projectFinancing, STEP project

Creation of New Start-ups, Equity Creation of New Start-ups, Equity Investment (exp. Sourcio-web technologies, Investment (exp. Sourcio-web technologies, e-health; AIT Systems- Boarder e-health; AIT Systems- Boarder Management, Airport Management)Management, Airport Management)

Venture Fund in Partnership with Cafesjian Venture Fund in Partnership with Cafesjian Family Foundation (funding existing Family Foundation (funding existing companies)companies)

STEP Project in Partnership with CRDF STEP Project in Partnership with CRDF (funding R&D teams)(funding R&D teams)

Business and IT Project Business and IT Project Management ConsultancyManagement Consultancy

Management Management Consulting:Consulting:AccountiAccounting Legal, Software ng Legal, Software Process Process Improvement and Improvement and CMMI, IT MarkCMMI, IT Mark

CertificationCertification Seminars, Round Seminars, Round

TablesTables

Country PromotionCountry Promotion

Digitech ExhibitionDigitech Exhibition IT in Everyday IT in Everyday

BusinessBusiness VC ConferenceVC Conference IT MonthIT Month ContestsContests Surveys and Surveys and

PublicationsPublications

Skill DevelopmentSkill Development

University ProjectsUniversity Projects

Regional Projects Regional Projects (GITC)(GITC)

Short Term Short Term Training CoursesTraining Courses

Infrastructure ServicesInfrastructure Services Slavonic university, right Slavonic university, right

wingwing newly refurbished, fully newly refurbished, fully

network wired, PBXnetwork wired, PBX internet via fiber optic and internet via fiber optic and

satellite satellite conference & meeting rooms conference & meeting rooms

with projection and with projection and videoconferencing equipmentvideoconferencing equipment

cleaning, utilities, parking, cleaning, utilities, parking, security, cafeteria, 24/7 security, cafeteria, 24/7 accessaccess

total 2,000 sq.m., 100% total 2,000 sq.m., 100% occupancyoccupancy

Microsoft Innovation Centre, Microsoft Innovation Centre, SUN Testing Development SUN Testing Development Lab, NI Regional R&D Lab, Lab, NI Regional R&D Lab, etcetc

Key Results AchievedKey Results Achieved

Annual sector growth 20%, Annual sector growth 20%, Annual workforce growth 30%Annual workforce growth 30% 10% growth in start-ups creation10% growth in start-ups creation IT industry produces ~ 10% of Armenia’s IT industry produces ~ 10% of Armenia’s

exports and almost 2% of Armenia’s GDPexports and almost 2% of Armenia’s GDP Productivity increase 7%Productivity increase 7% 70% of IT companies using EIF services70% of IT companies using EIF services FDI attracted more then 10mln USDFDI attracted more then 10mln USD First VC fund First VC fund

Road AheadRoad Ahead Strategy on IT and Strategy on IT and

Information Society 2008-Information Society 2008-20182018

Yerevan Techno parkYerevan Techno park Gumry Techno city Gumry Techno city Regional IncubatorsRegional Incubators VC and Start up FundVC and Start up Fund Computer and Internet Computer and Internet

Penetration up to 80 %Penetration up to 80 % E-Governance, E-Health, E-E-Governance, E-Health, E-

EducationEducation Modern ICT infrastructureModern ICT infrastructure Productivity Increase-CMMIProductivity Increase-CMMI

Thank YouThank You

Enterprise Incubator Foundation123 Hovsep Emin st.Phone: (374 10) 219797Fax: (374 10) 219777E-mail: info@eif.amwww.eif-it.com