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Horizon 2020 Policy Support Facility Kick-off meeting Brussels 16.04.2019 Horizon2020 PSF Specific support to Armenia Background report

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Page 1: Horizon2020 PSF Specific support to Armenia · 2020-03-12 · Horizon2020 PSF Specific support to Armenia Background report. Horizon 2020 Policy Support Facility 2 ... intellectual

Horizon 2020 Policy Support Facility

Kick-off meeting

Brussels 16.04.2019

Horizon2020 PSF Specific support to Armenia

Background report

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Horizon 2020 Policy Support Facility 2

Fast facts

Country / Capital The Republic of Armenia / Yerevan

Population 2 .93 milion

Area 29.743 sq. km (11.500 sq. miles)

Major languages Armenian (native), Russian, English

Major religion Christianity

Life expectancy 71.3 years (men), 77.6 years (women)

Monetary unit Armenian dram (AMD)

Exchange rate 570.56 AMD/EUR(2018)

GDP per capita, PPP 8,539 EUR (2017)

Main exportsProducts: Copper ore, cigarette produce, brandy, precious and non-precious metals, diamonds, textile produce, electricity, foodstuff, Services: IT, tourism

System of law Continental

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Fast facts

Horizon 2020 Policy Support Facility 3

Ratings

Moody’s rating B1, positive (March 9, 2018)

Fitch (long-term IDRs) rating B+, positive (June 15, 2018)

Ranking

Ease of Doing Business 41 (2019, out of 190 countries)

Index of Economic Freedom 47 (2019, out of 180 countries)

Human Capital Index 49 (2017, out of 130 countries)

Global Competitiveness Index 70 (2018-2019, out of 140 countries)

Global Innovation index 68 (2018, out of 126 countries)

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Priorities of new Government program

• Protection of external and internal security of RA, guarantee of Artsakh’s security and its maintenance

• Competitiveness of the economy

• Protection of human rights

• Democracy and the rule of law

• Consolidation of human, economic, financial, intellectual potential of all Armenians for the RA development goal

• Government accountability and transparency and the rejection of corruption

• Separation of political and business sectors

• Encouraging education and healthy living

• Poverty reduction through employment and education

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In April, 2018 through “Velvet revolution” the opposition leader became prime minister of Armenia.

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Horizon 2020 Policy Support Facility 5

SOCIAL AND ECONOMIC SITUATION IN ARMEINA

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3448.6

3260.33226.9

3156

3021.4 3026.9 3017.1 3010.6 2998.6 2976.2 2972.7

1989 1995 2000 2005 2011 2012 2013 2014 2015 2016 2017

After independence the population has constantly decreased: 2 waves of

massive migration in 90s and mid 2000s.

Armenia’s population, thousand people

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60.67 60.9460.7660.62

59.80

60.32

58.30

58.81 58.65

2011 2015 2018

High income countries Republic of Armenia Upper-middle income countries

Although being in the group of upper-middle income country, Armenia’s rate of economic activity is closer to the average of high-income countries.

Economic activity rate, %

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48% 48% 47% 46% 48% 48% 48%

27% 26% 26% 24% 23% 24% 23%

25% 25% 27% 31% 29% 29% 30%

2011 2012 2013 2014 2015 2016 2017

No specialization TVET Tertiary and postgraduate education

Economically active population by educational level

The share of the tertiary and postgraduate students in the economically activepopulation increased primarily in expense of reduced TVET share.

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Armenia is 4th by GDP per capita in PPP among EP countries despite recorded high growth during last 6 years.

9,647

-

5,000

10,000

15,000

20,000

25,000

30,000

35,000

40,000

45,000

Belarus Azerbaijan Georgia Armenia Ukraine Moldova Latvia Estonia Lithuania Israel

GDP per capita, PPP, 2017 and CAGR 2011-17

1.6% 1.7%

6.5%

5.4%

0.8%

5.3%

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National income increased significantly during the first years of the 2000s andshrank sharply caused by the economical crisis. Even with the current growth ratesit hasn’t recovered to pre-crisis level yet.

10.5

13.9 13.2 13.7

6.9

-14.1

2.2

4.7

7.2

3.3 3.6 3.0

0.2

7.55.2

-20.0

-15.0

-10.0

-5.0

0.0

5.0

10.0

15.0

20.0

2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018

Armenia GDP annual growth %, 2004-2018

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17% 16% 16% 16% 14% 14% 14% 16% 14% 15% 15% 16% 16% 18% 17%

13% 13% 12% 11% 10% 9% 8%9% 10% 11% 11% 11% 11% 10% 11%

11% 14% 15% 16% 20% 21% 22% 15% 15% 13% 12% 11% 10% 10% 8%

9% 9% 8% 8% 6% 6% 6%6% 5% 6% 6% 6% 5% 5% 5%

47% 47% 47% 48% 49% 49% 49% 52% 54% 53% 53% 53% 55% 54% 55%

2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017

Agriculture Manufacturing Construction Mining and quarrying Utility Services

GVA structure in Armenia, % share

Agriculture still plays a relatively important role with high share in GVA and theshare of service in GVA significantly increased during 2003-2017.

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Armenia enlarges the access to foreign markets due to the international cooperation.

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International cooperation

January, 2015 Eurasian Economic Union (EAEU)

May, 2015 Trade and Investment Framework Agreement (USA)

November,2017 Comprehensive and Enhanced Partnership Agreement(EU)

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Key challenges

• Geopolitical situation in the region (Armenia-Turkey-Azerbaijan, Iran-US, Georgia-Russia)

• High level of poverty and unemployment

• Spatial disparities of economic activity

• Deteriorating educational and scientific base

• Resource intensity of the exports

• Limited connectivity to export markets

• Worsening demographics

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GOVERNANCE OF THE NATIONAL R&I SYSTEM

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In the Armenian institutional set-up, innovation and science are two separate policy domains with clearly distinguished roles and responsibilities.

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Science Innovations

The Science Committee of the Ministry of Education and Science

Ministry of Economic Development and Investment • Enterprise Incubator Foundation• National Centre of Innovation and

Entrepreneurship• Small and Medium Entrepreneurship

Development Centre of Armenia • Armenian Intellectual Property Agency

(AIPA),• National Institutes of Standards• National Institute of Metrology

National Academy of Science

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Government’s priorities in Science for 2017-2020

• Improvement of the science and technology management system

• Introduction of an efficient system for re-production of personnel

• Promoting research of fundamental and applied nature

• Establishing preconditions to form synergetic system of education, science, technology and innovation,

• Primary development of Armenian studies,

• Development of international scientific cooperation, ensuring smart specialization platform.

Objectives

• Armenology

• Life Sciences

• Secure and Efficient Energy

• Key Enabling Technologies, Information and Communication Technologies

• Space, Earth Sciences, Sustainable Use of Natural Resources

• Basic Researches for Key Problems of Scientific and Socio-Economic Development

Priorities

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National innovation strategy suggests three pathways: technology niche leadership, innovation for export growth and challenge driven innovation.

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Weak technology progress & knowledge generation

Low Competitiveness & Business Innovation

Limited Innovation in and for society

• Weak science & technology specialisation and under-investment

• Science & education system contributes rarely to development

• Low level of company innovation activities and ability for absorption

• Limited competitiveness in regional and international markets

Foster managerial and technological upgrade for high value export sectors

• Needs for cost-effective and innovative solutions to ‘societal challenges’

• Low understanding & usage of innovation as driver for well-being is limited in society

Focused Catch-up

Use innovation as driver

Concentrate efforts to achieve leadership in

distinct technology niche

Develop innovation partnerships to solve societal challenges and use this as a

driver to change perception of innovation

• 3-5 tech clusters with ECEI cluster excellence silver label (baseline none)

• 15,000 MS and 1,100 PhD graduates in priority advanced technologies (baseline n.a.)

• Output of high-tech manufacturing and services -USD 800 million

MAIN CHALLENGES MAIN APPROCHES MAIN IMPACT (2030)

• Number of innovative active companies triples to 30% (baseline <10%, 2017)

• Productivity level in innovative active and export oriented companies triples (baseline 39,000 USD, 2017.)

• Exports grow about 10 times (baseline USD 585million, 2017)

Drive Technology Specialisation

• Improved performance on resource efficiency, income inequality (baseline n.a.)

• Armenia in top 30 in world for government effectiveness (baseline 79th, 2017).

• Environmental, health and social sectors value added increases

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FINANCING OF R&D

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0.25%0.26%

0.28% 0.28%0.26% 0.24%

0.22%

0.20%0.18%

0.00%

0.05%

0.10%

0.15%

0.20%

0.25%

0.30%

0

5

10

15

20

25

30

35

2013 2014 2015 2016 2017 2018 2019 2020 2021

In bln AMD in mln USD Share in GDP

State expenditures for science in AMD and constant 2017 USD and its share in GDP

Government expenditure on science grew between 2013 and 2017. No increase is foreseen in next 3 years.

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Horizon 2020 Policy Support Facility 20

ArmeniaAzerbaijan

Belarus

Estonia Ireland

Israel

Latvia

Lithuania

Moldova

Ukraine

0.0%

0.5%

1.0%

1.5%

2.0%

2.5%

3.0%

3.5%

4.0%

4.5%

-15.0% -10.0% -5.0% 0.0% 5.0%

GER

D %

in G

DP,

20

16

Change of GERD share in GDP, CAGR 2011-2016

GERD to GDP, in %, 2016 vs. CAGR 2011-2016

Expenditures on R&D in Armenia are in the lowest quantile in the peer group, inline with its neighbors. On the same time, the share of the GERD in GDP hasdecreased during 2011-2016.

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Horizon 2020 Policy Support Facility 21

2015 2016 2017 2018 2019 2020 2021

Basic funding including premiums for scientific degree

77.2% 77.3% 76.4% 72.9% 73.3% 73.3% 73.3%

Target program financing 13.2% 13.1% 12.9% 18.0% 18.0% 18.0% 18.0%

Competitive research grants (topic/thematic financing)

9.6% 9.6% 10.7% 9.2% 8.7% 8.7% 8.7%

Allocation of state funding volumes according to the types of financing of scientific and scientific-technical activities

The largest share of the budget was allocated to cover operational and maintenance costsof public research institutes and ensure their functionality including the premiums forscientific degrees.

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Horizon 2020 Policy Support Facility 22

Natural Sciences

36%

General23%

Engineering and Technology

16%

Armenology and Humanities

14%

Agricultural sciences

4%

Social Sciences4%

Medical Sciences3%

Armenian science budget (2017) by field of science

The 66% of science budget in 2017 was allocated in three fields (natural sciences, engineering & technology and Armenology&humanities).

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R&D PERFORMERS

Horizon 2020 Policy Support Facility 23

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Horizon 2020 Policy Support Facility 24

Filed/Type of Institutions NAS Private State HEIGrand

Total

Chemistry and earth sciences 5 1 6 - 12

Mathematical and technical sciences 4 4 1 - 9

Natural Sciences 8 2 3 - 13

Physics and astrophysics 5 - 3 - 8

Social sciences 12 3 19 - 34

Multidisciplinary - - - 15 15

Total 34 10 32 15 91

The small budget is distributed among many institutions.

Distribution of Scientific Institutions engaged in state programs by fields of

science and type of institutions as of January 2017

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QUALITY OF THE SCIENCE BASE

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Horizon 2020 Policy Support Facility 26

90

3 10

47

95

8

95

0 10

54

11

37

11

29

10

57

10

27 11

44

10

67

10

89

10

67

11

03

10

72

2011 2012 2013 2014 2015 2016 2017 2018

Web of Science Scimago

Number of publications in 2011-2018

Number of published documents increased by 17% in 2011-2018 (Web ofScience).

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Horizon 2020 Policy Support Facility 27

3,489

5,663

6,559

8,235

12,853

14,677

21,301

27,002

56,631

115,336

159,261

Moldova

Azerbaijan

Georgia

Armenia

Belarus

Latvia

Estonia

Lithuania

Ukraine

Ireland

Israel

574

983

1263

1352

1765

2810

7563

9549

16193

18280

23960

Azerbaijan

Moldova

Ukraine

Belarus

Georgia

Armenia

Latvia

Lithuania

Estonia

Israel

Ireland

Cumulative publications of Armenia, Israel, Ireland, EP and Baltic countries in 2011-2018

Cumulative publications of Armenia, EP and Baltic countries by per million population in 2011-2018

Armenia is underperforming Ukraine and Belarus by number of publications, but is the leader among EP countries by number of publications by per million population.

Page 28: Horizon2020 PSF Specific support to Armenia · 2020-03-12 · Horizon2020 PSF Specific support to Armenia Background report. Horizon 2020 Policy Support Facility 2 ... intellectual

By the share of cited documents Armenia outperforms not only EP countries but also Ireland, Lithuania and Latvia.

Horizon 2020 Policy Support Facility 28

44.3

49.1

52.6

54.9

56.7

57.0

57.7

59.8

63.1

67.1

67.3

Latvia

Moldova

Ukraine

Azerbaijan

Lithuania

Belarus

Ireland

Georgia

Armenia

Israel

Estonia

Share of cited documents in total publications %, 2016

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Horizon 2020 Policy Support Facility 29

71.3% 72.7% 71.6% 70.0% 67.2% 71.2% 68.5% 71.6%

11.6%13.8% 15.3%

13.4% 15.6%14.1%

12.3%11.5%

9.0%8.0% 10.0%

11.6% 10.0%10.4%

13.7% 12.5%

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

2011 2012 2013 2014 2015 2016 2017 2018

Humanities

Social sciences

Agricultural sciences

Medical and healthsciences

Engineering andtechnology

Natural sciences

Publications in 2011-2018 by research area

Overwhelming part of publications came form Natural Sciences followed by Medical and health sciences.

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Horizon 2020 Policy Support Facility 30

63

82

82

83

86

88

91

92

95

95

-7

-3

-12

-19

-12

1

-9

51

12

-18

Physics and astronomy

Chemistry

Materials Science

Mathematics

Engineering

Arts and Humanities

Earth and planetary sciences

Economics, Econometrics and Finance

Dentistry

Neuroscience

Rank Change in rank

Ranking of different subject areas in 2017 and their changes during 2011-2017

According to SCimago database Physics and astronomy has the highest ranking but itsposition worsened by 7 places compared to 2011. The largest improvement inranking recorded Economics, Econometrics and Finance.

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Horizon 2020 Policy Support Facility 31

Subject areaPublished

documentsShare of cited documents in total, %

Physics and astronomy 4547 74

Earth and related environmental sciences 205 64

Materials engineering 261 62

Chemical sciences 682 61

Other engineering and technologies 283 61

Environmental engineering 112 56

Biological sciences 626 54

Nano-technology 166 54

Mathematics 606 52

Basic medical research 380 44

Mechanical engineering 241 43

Health sciences 175 38

Electrical eng., electronic eng. 359 30

Clinical medicine 614 29

History and archaeology 109 26

Computer and information sciences 189 24

74% of documents in Physical Sciences and Astronomy, which is the leading subject areain the field of science of Armenia, was cited during 2011-2018.

Subject areas with highest percentage of citations, for 2011-2018 (more than 100 published documents)

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On average 63% of the publications in the field of Natural Sciences were done through international collaborations.

Horizon 2020 Policy Support Facility 32

Subject areasAverage of documents published

Average of international

collaborations

Share of international

collaborations

Natural sciences 823 519 63%

Engineering and technology 158 80 51%

Medical and health sciences 125 58 46%

Agricultural sciences 10 6 60%

Social sciences 32 14 44%

Humanities 20 4 20%

Average International collaborations 2011-2018

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Horizon 2020 Policy Support Facility 33

Thanks to diaspora links Armenia has a relatively high rate of international collaboration of scientists.

0%

10%

20%

30%

40%

50%

60%

70%

2011 2012 2013 2014 2015 2016 2017

Scimago WebofScience

Share of international collaborations, 2011-2017

• International publications –increase of almost 77%

• Physics & Astronomy - 65% in totalcollaborations in 2017

• Armenia’s partners - US, Germany,Russia, France and Italy

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Horizon 2020 Policy Support Facility 34

44.7%

6.7%

6.2%

6.0%

6.0%

3.7%

3.5%

2.8%

2.6%

2.4%

2.0%

1.9%

1.7%

1.6%

1.1%

1.1%

6.3%

6.9%

8.5%

16.4%

2.2%

6.7%

6.0%

3.1%

4.3%

2.2%

3.7%

4.0%

4.4%

1.1%

2.6%

1.3%

Physical sciences and astronomy

Chemical sciences

Biological sciences

Clinical medicine

Mathematics

Basic medical research

Electrical eng, electronic eng

Other engineering and technologies

Materials engineering

Mechanical engineering

Earth and related environmental sciences

Computer and information sciences

Health sciences

Nano-technology

Environmental engineering

History and archaeology

Armenia

World

Comparison of Armenia’s and World’s shares of subject areas, 2011-2018

Armenia has a revealed comparative advantage in the field of Physical Sciences & Astronomy and Mathematics compared to the World.

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Horizon 2020 Policy Support Facility 35

146

7363

54 47 40 40 33 29 27

Subject areas with the highest H-index

Armenia’s best performing field of science by H-Index is Physics and astronomyand one of the worst performing fields is computer science.

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Horizon 2020 Policy Support Facility 36

87

97

142

155

158

160

179

225

234

451

624

Azerbaijan

Moldova

Latvia

Georgia

Belarus

Armenia

Lithuania

Ukraine

Estonia

Ireland

Israel

H-indexes of benchmark countries, 2017

Armenia is the 2nd by H-index among EP countries by its H-index underperforming only Ukraine.

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Horizon 2020 Policy Support Facility 37

Armenia

Azerbaijan

Georgia

Estonia

IsraelIreland

Latvia

Lithuania

Moldova

Ukraine

1

2

3

4

5

6

7

0 20 40 60 80 100

Un

ive

rsit

y-in

du

stry

co

llab

ora

tio

n in

R

&D

, GC

R v

alu

e 2

01

8

Company spending on R&D, GCR value

Company spending on R&D vs. university-industry collaboration on R&D, 2018

Armenia fares only 86nd on R&D expenditure indicator and lags behind many of its competitor countries.

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Horizon 2020 Policy Support Facility 38

TechnologiesNumber of engineers

(upper bound estimates)

Number of

companies

Machine Learning / AI 100 14

Robotics and Drones 40 5

Internet of Things 50 6

Blockchain 30 2

Big Data and cloud computing 200 12

3D printing 25 4

Augmented and Virtual Reality 25 4

Cybersecurity 40 6

Number of companies and employed engineers in selected disruptive technologies in Armenia, 2017

The numbers of companies and employees are not huge and the utilization of the technologies is still experimental in most companies.

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HUMAN RESOURCES

Horizon 2020 Policy Support Facility 39

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CountryExpenditure on education

% of GDP

Expenditure on higher education

% of GDPYear

Armenia 2.3 0.22 2017

Azerbaijan 2.9 0.5 2016

Belarus 4.8 0.79 2017

Georgia 3.8 0.39 2017

Estonia 5.2 1.41 2015

Israel 5.9 0.95 2015

Ireland 3.8 0.88 2015

Latvia 5.3 1.18 2015

Lithuania 5.2 1.18 2015

Moldova 6.7 0.99 2016

Ukraine 5 1.53 2016

EU28 average 5.1 - 2015

Despite the increase of government expenditure on education to $290 million in 2019 Armenia underperforms its peers both in the field of general and higher education.

Gov.expenditures on education of benchmark countries

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STEM graduates account 18-19% of graduates in Bachelor’s and Master’s degrees.

Horizon 2020 Policy Support Facility 41

20.5%27.8% 31.1%

9.2%

15.3% 9.4%15.5%

18.8% 18.7%

54.8%

38.1% 40.8%

2015 2016 2017

Economics Education & Pedagogy STEM Other

Bachelor's degree

23.1%34.0% 36.2%

7.0%

6.1% 5.7%17.6%

17.8% 18.1%

52.3%42.1% 40.0%

2015 2016 2017

Master's degree

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Though the interest in STEM field increases in Armenia, we are still behind from the targeted groups of countries’ averages.

Horizon 2020 Policy Support Facility 42

15.5%

18.8% 18.7%

23.1% 23.6%

20.9%21.8% 21.4%

22.9%

2015 2016 2017

Armenia High Income Countries Upper Middle Income Countries

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Horizon 2020 Policy Support Facility 43

Education level

Higher educationVocational

educationOther Total

TotalGrand

DoctorPhD

Research-specialists 3544 495 1553 25 19 3588

Technicians 98 - - 93 28 219

Support staff 208 1 2 207 112 527

Other 283 - 1 44 161 488

Total 4133 496 1556 369 320 4822

Number of R&D staff by education level (2017)

The number of scientists dropped from 25,344 in 1991 to about 5000-6000 currently.

According to the Science Committee of RA the number of people working in the field of

science is 6057, out of which 3951 are researchers and 2573 from them have a science

degree.

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Horizon 2020 Policy Support Facility 44

2 3 516 16

35

60

101121

81 87 86105

204184

140

78

104

130

156

211

100 94

25-29 30-34 35-39 40-44 45-49 50-54 55-59 60-64 65-69 70-74 75-79

Grand Doctor PhD

Scientific grade holder’s structure by age group (scientists engaged in state programs), as of July 2016

Demographic hole in the scientific community(45-49 age group) is a result of the transition period in the 1990s (the collapse of the Soviet Union).

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INTERNATIONAL R&D COOPERATION AND MOBILITY

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Horizon 2020 Policy Support Facility 46

Legal Names of RA institutionsH2020

Participations

National Academy of Sciences of the RA 7

Institute for informatics and automation problems of the national academy of sciences of the RA 4

Small and medium entrepreneurship development national center of Armenia fund 3Information society technologies center 2Yerevan State University 2Yerevan State Medical University after Mkhitar Heratsi 1

Center for Ecological-Noosphere Studies National Academy of Sciences of the RA 1Caucasus Consulting Group-am 1ACBA leasing credit organization closed joint stock company 1Grovf LLC 1Educational and cultural bridges 1Center of medical genetics and primary health care 1"Matenadaran" M.Mashtots institute of ancient manuscripts 1Scientific and production center Armbiotechnology NAS RA 1

Institute for physical research of national academy of sciences of Armenia 1

A.I. Alikhanyan national science laboratory 1

Armenia launched its cooperation with Horizon 2020 in May 2016.

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FRAMEWORK CONDITIONS FOR R&I

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8

98

17

14

44

51

82

46

24

95

Starting a Business

Dealing with Construction Permits

Getting Electricity

Registering Property

Getting Credit

Protecting Minority Investors

Paying Taxes

Trading across Borders

Enforcing Contracts

Resolving Insolvency

Armenia’s rankings on Doing Business topics

Armenia has made progress in improving its business environment but remainswell below neighboring Georgia (6th rank).

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Horizon 2020 Policy Support Facility 49

59.954

66.359.2

72.4

82.7

67.661.2

65

54.2

36.7

60.2

38.8

Ove

rall

Inst

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Infr

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ICT

ado

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Bu

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ess

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apab

ility

OverallScore

EnablingEnvironment

Human Capital Markets InnovationEcosystem

Armenia’s Performance Overview 2018, GCR

Armenia shares strong performances on health, macro-economic stability and education and skills while significantly underperforms in Innovation capability.

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Horizon 2020 Policy Support Facility 50

Business incubators and accelerators

• Gyumri Technology Centre (GTC)

• Vanadzor Technology Centre (VTC)

• Viasphere Technopark

• “IT Park”

• The Tumo Centre for Creative Technology

• Microsoft Innovation Centre

• IBM Innovative Solutions and Technologies Centre (ISTC)

• The Engineering City

• Regional Nokia Mobile Application Laboratory for Eastern Europe

• Armenian National Engineering Laboratories

• The ICT Armenian-Indian Centre for Excellence

• The Convergence Centre for Engineering and Applied Science (in the process of construction)

Diaspora led networks and initiatives

• The Foundation for Armenian Science and Technology

• ArmTech

• ARPA Institute

• The Armenian Engineers and Scientists of America

Examples of innovation enabling platforms in Armenia

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Armenian researchers are less active in patenting.

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Armenia

Azerbaijan

Belarus

Estonia

Georgia

Latvia

Lithuania

Ukraine

-15%

-10%

-5%

0%

5%

10%

- 500 1,000 1,500 2,000 2,500 3,000 3,500 4,000 4,500

Nu

mb

er

of

pat

en

ts C

AG

R, 2

01

1-2

01

6

Number of patents, 2016

Patents in force per million inhabitants, 2016 vs. CAGR 2012-2016

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The majority of patent applications are submitted by national applicants.

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121

137126 121

113

92

107

134 6 2 2 2 3

103 5 2 1 2 2

2011 2012 2013 2014 2015 2016 2017

National applicants Foreign applicants Including՝ PCT procedures

Number of invention patent applications in Armenia, 2011-2017

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The field of human necessities is the leader both for national and foreign applications.

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292

168198

0

109

141 139

69

12 8 10 1 4 6 10 3

304

176

208

1

113

147 149

72

A. Humannecessities

B. Performingoperations,transporting

C. Chemistry,metallurgy

D. Textiles, paper E. FixedConstructions

F. Mechanicalengineering;

lighting; heating;weapons; blasting

G. Physics H. Electricity

National applicants Foreign applicants Total

Number of patent applications in Armenia by the field of technology, 2011-2017

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Armenia shows relatively higher level than average results both in terms ofhigh-tech exports and its growth rates during the last 6 years comparedwith EP peers.

Horizon 2020 Policy Support Facility 54

Armenia

Azerbaijan Belarus

Estonia

EU.28

Georgia

IrelandIsrael

Latvia

Lithuania

Moldova

Ukraine

-5%

0%

5%

10%

15%

20%

0% 5% 10% 15% 20% 25%

CA

GR

, 20

11

-20

17

High-tech exports share, 2017

High-Tech Exports (in percentage to total manufactured exports) in 2017 vs. CAGR 2011-2017

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Armenia shows moderate results on cultural and creative exports.

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0.1%

0.1%

0.1%

0.3%

0.4%

0.5%

0.5%

1.3%

1.5%

2.1%

Belarus

Ireland

Ukraine

Georgia

Armenia

Lithuania

Moldova

Latvia

Estonia

Israel

Cultural and creative output service exports, Armenia and benchmark countries, 2018

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ARMENIA’S INNOVATION CHALLENGES

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The current state of the Armenian innovation system is far from optimal, but there are a number of improvements.

• Current developments• High recognition of innovation on policy level • Internationally competitive research capabilities in selected fields and relatively

strong scientific output results • Success in building dynamically developing and internationally linked innovation

ecosystem in ICT and, to some extent, engineering service sectors• Networked and experienced diaspora in science, technology and business sectors• Large-scale educational initiatives and positive attitude towards education• Embryonic innovation support services (funded by government, donor and diaspora).

• Key challenges• Underinvestment in science and fragmentation• Quality of education• Week research-industry linkages• Low absorptive capacity of local private sector • Absence of innovation strategy and focus

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