2. BACKGROUND AND COMPARATIVE ADVANTAGES  Armenia as a regional center for ICT  Comparative advantages of Armenia:  qualified and experienced labor force  high level of specialized education  developed ICT R&D infrastructure  heritage and traditions in the ICT sector coming from the Soviet period  significant Diaspora resources

3. IT DEVELOPMENT POLICY  The newly emerging market economy dictates new challenges especially in the following directions:  Preservation of the existent potential and capacities during the privatization  Restructuring of giant enterprises with five to ten thousand employees to small and medium enterprises  Significant improvement of productivity level in the newly established enterprises

4. IT DEVELOPMENT POLICY  Major and sustained market reforms improved the performance of the economy.  Need for coherent state policy and further reforms in the ICT sector:  adoption of the IT Industry Development Concept Paper in 2001, which identified the ICT industry development goals and objectives:  improving the legal framework  improving infrastructure  expanding ICT by public  expanding ICT application in different sectors of economy

5. IT DEVELOPMENT POLICY  To promote the electronic trade in Armenia, the following steps have been made in legal and institutional sectors:  Improvement in the Armenian acting legislation  Elaboration of “Electronic Documentation & Digital Signature” Law  Establishment of IT Marketing Center

6. STATISTICS AND DEVELOPMENT TRENDS Export, USD millions Number of companies Exports - foreign companies Exports - domestic companies Domestic consumption - domestic companies 19992002 35 - 40 200 Domestically owned Foreign owned 40 160 19992002 45 -50 27 -31 45 21 -25

7. INFRASTRUCTURE DEVELOPMENT AND CAPACITY BUILDING In July 2002, the IT Development Support Council was established by the Presidential Decree. Council’s main objectives:  Private and public partnership development  State assistance to ICT sector  Maintenance of effective links between the business community and the government

8. INFRASTRUCTURE DEVELOPMENT AND CAPACITY BUILDING In November 2002, the Enterprise Incubator Foundation was established Objectives of the Enterprise Incubator Foundation:  Assist with formation of technology start-ups and their further development  Promote Armenian technology companies and their products in international markets  Improve managerial and professional capabilities of local technology companies

9. KEY TARGETS FOR SECTOR DEVELOPMENT  Actively attract key global players to position Armenia on global IT map  Development of human capital  Constantly coordination of educational programs in all levels  Development of telecommunication services