Armenia is poised for success as its tech hub in the Caucasus gains momentum, driven by a strong foundation in technology education, a legacy of mathematics and computing, and a boost from Russian IT specialists.
Building a Tech Hub in the Caucasus: Armenia‘s Ambitious Plan
The Rise of Armenian Technology Education
In a typical three-storey state school in the suburbs of Yerevan, nine-year-old Slavik is demonstrating his invention – a box with three LED lights. He has learned how to control it and the programming language, with code written entirely by himself. This scene showcases Armenia‘s early start in tech education, which began in 2014 with the launch of the ‘Armath programme’.
Armath, or ‘root’ in English, is an initiative by the Union of Advanced Technology Enterprises (UATE) that aims to establish technology labs in schools across Armenia. Today, there are over 650 Armath labs, and the programme has been instrumental in shaping the country’s tech sector. The goal is to have 5,000 of the most talented kids decide to become engineers every year.
Armath is a programming language and environment designed for teaching mathematics and computer science concepts to students.
Developed in the early 2000s, it allows users to create interactive math lessons and exercises using a visual interface.
Armath supports various mathematical operations and graphics, making it an effective tool for educational purposes.
It has been used in several schools and universities worldwide to enhance student engagement and understanding of complex math concepts.
A Legacy of Mathematics and Computing
Armenia‘s journey into technology dates back to the Soviet era when it was a centre of mathematics and computer science. The Yerevan Scientific Research Institute of Mathematical Machines was established in 1956, and by 1960, it had developed two first-generation computers. This legacy has been revived with the ambition to transform Armenia into the tech powerhouse of the Caucasus.
Success Stories and Global Diaspora
Picsart, a AI-powered photo and video editing website and app, was launched in Armenia in 2011 and is now valued at $1.5 billion. Krisp and Service Titan are other Armenian success stories. The nation’s global diaspora plays a critical role in boosting tech development, with an estimated 75% of the world’s Armenians living elsewhere.
PicsArt is a popular mobile photo and video editing app that has gained immense popularity worldwide.
Founded in 2011, the platform allows users to create stunning visual content using its extensive library of stickers, fonts, and effects.
With over 150 million downloads, PicsArt has become a go-to destination for creative individuals seeking to express themselves through art.
The app's user-friendly interface and advanced editing tools have made it an essential tool for social media influencers, photographers, and artists alike.
Boost from Russian IT Specialists
Following Russia‘s invasion of Ukraine in 2022, thousands of Russian IT specialists relocated to Armenia, filling crucial skill gaps in the country’s tech sector. US chipmaking giant Nvidia moved its Russian office to Armenia, further bolstering the sector.
Challenges Ahead
However, Vasily, a Russian IT consultant who relocated to Armenia, notes that the country needs to reduce tax burdens on IT firms to retain them. Despite this, overall optimism remains high about Armenia‘s tech future, with Samvel Khachikyan expecting the sector to boom. The record-breaking floatation of Service Titan on the New York Stock Exchange last December is a testament to Armenia‘s growing success.
Expanding Horizons
Armenian entrepreneurs, such as Irina Ghazaryan, founder of Dr Yan, an app changing how Armenians access healthcare, are expanding their products into other markets. The app operates on a subscription model, with doctors paying to be listed on the platform, and there are plans to expand further.
As Armenia continues to build its tech hub in the Caucasus, it is clear that the country’s ambitious plan is gaining momentum. With a strong foundation in technology education, a legacy of mathematics and computing, and a boost from Russian IT specialists, Armenia is poised for success.
Armenia has emerged as a significant player in the global tech industry, with Yerevan serving as its primary hub.
The country boasts a highly skilled workforce and a favorable business environment, attracting international companies such as Google and Microsoft.
According to a report by Startup Armenia, the country's startup ecosystem has grown significantly, with over 300 startups operating in various sectors, including IT, e-commerce, and fintech.
Armenia's tech hub is also home to several innovation centers and accelerators, providing resources and support for entrepreneurs and innovators.
