This project aims to build on the findings of the review by strengthening Armenia’s innovation-driven development agenda. In recent years Armenia has emerged as a regional leader in technological services, particularly in the IT sector, where the share of GDP rose significantly from around 1.2 % in 2010 to 5.1 % in 2020, demonstrating clear potential for innovation-led growth. The project will support the creation of a comprehensive national innovation strategy that enables the country to leverage its high education levels, entrepreneurial culture and political commitment to innovation. Key components include mapping the innovation ecosystem, identifying bottlenecks in governance and financing, and designing mechanisms to spread innovation beyond the IT sector into traditional industries and emerging green/digital-economy segments.
In light of the review’s assessment of structural constraints, our proposed interventions focus on three interconnected domains: (1) governance and policy frameworks, (2) human capital and research capacities, and (3) innovation diffusion and sectoral diversification. The review highlights that Armenia has embarked on ambitious reforms but must now “maintain, spread and reinforce this momentum” in order to support innovation across all economic sectors. To this end, the project will work with the Ministries of High-Tech Industry, Economy, and Education / Science to co-design a performance-based research funding model, strengthen regional innovation hubs (outside Yerevan), and promote stronger linkages between research institutes, start-ups and industry via public-private-academic partnerships.
Finally, the project will embed sustainability and inclusion at the core of the innovation agenda. The UNECE review underscores that innovation should contribute to the goals of the circular economy, digitalisation, climate-resilience and inclusive growth. Accordingly, our initiative will incorporate metrics and monitoring to track how innovation outcomes support sustainable development, such as reducing unemployment, enhancing regional equity, and boosting the green/digital transition. We will pilot sector-specific innovation clusters (e.g., agritech, renewable energy, smart manufacturing) in selected regional centres, along with targeted mentorship and funding schemes for youth and women entrepreneurs. By doing so, the project aims to translate Armenia’s demonstrated innovation potential into tangible socio-economic benefits for all parts of the country.
Innovation for Sustainable Development Review: Armenia
