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 2017 Scaling the measures and capacitiy enlargement HORIZON 3. Till 2020 Armenia a Global center for R&D VISION Armenia 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 Fund Grants 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, C isco 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 EducationReform 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