The high-tech industry, along with the telecommunications sector, is one of the fastest growing sectors in the Armenian economy. During the past ten years the sector experienced a steady increase in the number of newly formed companies, both local start-ups and branches of foreign companies. Despite the economic slowdown, the industry registered 17 percent growth in 2011. Overall, there are about 300 high-tech companies of varying sizes, more than 100 of which have foreign capital. Most of the companies, however, are small and medium-sized firms with 25 employees on average. The high-tech sector has a very diverse export market with established markets in Russia, countries of the Commonwealth of Independent States, the European Union, and North America. During the period of 2008 – 2011, exports to more than 20 countries averaged 65-70 million USD annually (Armenian Information Technology Sector Software and Services: Industry Reports, 2006-2011, Enterprise Incubator Foundation).
Despite these accomplishments and the manifest potential for growth, the high technology (HT) sector in Armenia currently is characterized by several key constraints that need to be effectively addressed. Sector growth is hampered by the lack of modern marketing strategies, the limited number and inadequate proficiency of professional staff (including marketing and sales), and lack of synergies with other sectors of the economy in the country.
CEED works with technology–focused entrepreneurs to share best practices and find areas for collaboration. CEED also connects entrepreneurs from Armenia with technology entrepreneurs from Silicon Valley, Israel and Jordan, areas which are touted for their booming innovation economy.