Armenia was considered a hub for industrial computing, electronics, software development, and semiconductor production during the Soviet Union.
Today, the country is steadily turning into a new regional hub of advanced technology and innovation due to its competitive labor force, the sector's share in GDP, and its constant growth in the number of companies and total turnover. All this served as a solid ground for Armenia to embrace technology's power in the 2000s and give it an exponential rise.
As of 2018, almost 800 IT companies, including internet service providers, generate a turnover of 920 mln USD. 200 companies are involved in R&D, 43 % of which create their own products. Noteworthy, 95 percent of these companies started their activity in the 2000s, of which in 2018 alone. The industry is growing at 20 percent a year and should comfortably reach the billion-dollar export mark. Օne thing is definite – Armenia has already secured its place on the IT map of the world, and this sector will be one of the locomotives of the economy.
Local companies enter the international market early on and compete successfully. PicsArt, Teamable, Krisp, Codesignal, Shadowmatic – this is just a shortlist of Armenian startups which are getting used all across the globe.
Total Revenue of ICT Sector, mln $
Those mentioned above also reflect on international indexes. Armenia is ranked 64th among 129 countries in the Global Innovation Index 2019. It ranks 15th among the 34 upper-middle-income economies covered in the GII 2019. With the Quality of math and science education, Armenia is in 33rd place among 137 countries. This is a perfect background for the ICT and High-Tech sectors.
The government is also stimulating the sector. IT startup companies with less than 30 employees, pay a reduced 10 % income tax instead of 23% and do not pay profit tax.