1. Public Financing for Innovation and Infrastructure: EIF Case Study Dr. Bagrat YENGIBARYAN Director EIF Kiev, April 2008

2. Enterprise Incubator Foundation Non-profit business development and incubation agency Non-profit business development and incubation agency Established in 2002 by the Government of Armenia within the World Bank’s “Enterprise Incubator” Project to support the development of Armenia’s IT industry Established in 2002 by the Government of Armenia within the World Bank’s “Enterprise Incubator” Project to support the development of Armenia’s IT industry Mission is to stimulate economic growth of Armenia by assisting the local IT enterprises in business and skills development areas and stimulating entrepreneurial activity and start-up formation in the country. Increase competitivnes of Armenian technology companies. Mission is to stimulate economic growth of Armenia by assisting the local IT enterprises in business and skills development areas and stimulating entrepreneurial activity and start-up formation in the country. Increase competitivnes of Armenian technology companies.

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

4. Main Directions Business Development Business Development Skill Development Skill Development Infrastructure Services Infrastructure Services

5. Business Development FDI-Export Promotion, Representative Offices FDI-Export Promotion, Representative Offices Start-up Formation and Venture Financing, STEP Project Start-up Formation and Venture Financing, STEP Project Business and IT Project Management Consultancy Business and IT Project Management Consultancy Country Promotion Country Promotion

6. FDI-Export Promotion, Representative Offices Alcatel, Microsoft, SUN Microsystems, NI, HP, GAID Youth ICT Centre, etc. Alcatel, Microsoft, SUN Microsystems, NI, HP, GAID Youth ICT Centre, etc. Representative Offices in Canada and Austria Representative Offices in Canada and Austria Internships Internships

7. Start-up Formation and Venture Financing, STEP project Creation of New Start-ups, Equity Investment (exp. Sourcio-web technologies, e-health; AIT Systems- Boarder Management, Airport Management) Creation of New Start-ups, Equity Investment (exp. Sourcio-web technologies, e-health; AIT Systems- Boarder Management, Airport Management) Venture Fund in Partnership with Cafesjian Family Foundation (funding existing companies) Venture Fund in Partnership with Cafesjian Family Foundation (funding existing companies) STEP Project in Partnership with CRDF (funding R&D teams) STEP Project in Partnership with CRDF (funding R&D teams)

8. Business and IT Project Management Consultancy Management Consulting: Accounting Legal, Software Process Improvement and CMMI, IT Mark Management Consulting: Accounting Legal, Software Process Improvement and CMMI, IT Mark Certification Certification Seminars, Round Tables Seminars, Round Tables

9. Country Promotion Digitech Exhibition Digitech Exhibition IT in Everyday Business IT in Everyday Business VC Conference VC Conference IT Month IT Month Contests Contests Surveys and Publications Surveys and Publications

10. Skill Development University Projects University Projects Regional Projects (GITC) Regional Projects (GITC) Short Term Training Courses Short Term Training Courses

11. Infrastructure Services Slavonic university, right wing Slavonic university, right wing newly refurbished, fully network wired, PBX newly refurbished, fully network wired, PBX internet via fiber optic and satellite internet via fiber optic and satellite conference & meeting rooms with projection and videoconferencing equipment conference & meeting rooms with projection and videoconferencing equipment cleaning, utilities, parking, security, cafeteria, 24/7 access cleaning, utilities, parking, security, cafeteria, 24/7 access total 2,000 sq.m., 100% occupancy total 2,000 sq.m., 100% occupancy Microsoft Innovation Centre, SUN Testing Development Lab, NI Regional R&D Lab, etc Microsoft Innovation Centre, SUN Testing Development Lab, NI Regional R&D Lab, etc

12. Key Results Achieved Annual sector growth 20%, Annual sector growth 20%, Annual workforce growth 30% Annual workforce growth 30% 10% growth in start-ups creation 10% growth in start-ups creation IT industry produces ~ 10% of Armenia’s exports and almost 2% of Armenia’s GDP IT industry produces ~ 10% of Armenia’s exports and almost 2% of Armenia’s GDP Productivity increase 7% Productivity increase 7% 70% of IT companies using EIF services 70% of IT companies using EIF services FDI attracted more then 10mln USD FDI attracted more then 10mln USD First VC fund First VC fund

13. Road Ahead Strategy on IT and Information Society 2008-2018 Strategy on IT and Information Society 2008-2018 Yerevan Techno park Yerevan Techno park Gumry Techno city Gumry Techno city Regional Incubators Regional Incubators VC and Start up Fund VC and Start up Fund Computer and Internet Penetration up to 80 % Computer and Internet Penetration up to 80 % E-Governance, E-Health, E- Education E-Governance, E-Health, E- Education Modern ICT infrastructure Modern ICT infrastructure Productivity Increase-CMMI Productivity Increase-CMMI

14. Thank You Enterprise Incubator Foundation 123 Hovsep Emin st. Phone: (374 10) 219797 Fax: (374 10) 219777 E-mail: info@eif.aminfo@eif.am www.eif-it.com