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ONCE A SOVIET HUB, ARMENIA LOOKS TO REVIVE ITS TECH SECTOR
Agence France Presse
April 1, 2014 Tuesday 3:37 AM GMT
: YEREVAN, April 01 2014
Once seen as a silicon valley of the Soviet Union, the tiny Caucasus
nation of Armenia is hoping the launch of its first tablet computer and
smartphone could kickstart a comeback for the country's tech sector.
Designed -- and soon set to be constructed -- in Armenia, the ArmPhone
and ArmTab devices are seen as a key steppingstone as the landlocked
state seeks to overcome crippling trade blockades from its neighbours
to become an unlikely industry hub.
"The high-tech sector in Armenia already has a long existence and now
we need to take it back to an international level," Vahan Chakarian,
president of the joint Armenian-US company Minno behind project,
told AFP.
"By building an Armenian tablet computer we'll create a brand that will
make Armenia more recognisable on the world market," Chakarian said.
Compared to major international brands funding and production targets
for the start-up are modest. The firm is spending some $6.5 million
over its first three years and aims to get manufacturing levels up
to some 100,000 items annually.
While the devices are designed by Armenian experts, up till now
production has been taking place in Hong Kong and the US. But those
behind the project hope that will change soon.
"We've been spending a lot of funds sending our Armenian specialists to
China to conduct quality tests where the tablets were being assembled,"
Chakarian said.
"Given the engineering capabilities in Armenia we plan in the near
future that all the work on the exterior and motherboard design and
software implementation will take place exclusively in Armenia."
The company already has a contract with Armenia's education ministry to
supply all first graders in the country with a tablet computer by 2015.
-Strong heritage, unfriendly neighbours-
For many the resurgence of the high-tech sector in Armenia comes as
no surprise. From computer systems in space ships to the electronics
in submarines, Armenia was at the heart of the USSR technology sector.
"One third of military electronics was designed and produced in
Armenia and there were several hundred thousand specialists worked
on developing and manufacturing computer technology," says Karen
Vardanyan, executive director at the Union of Information Technology
Enterprises in Yerevan.
Armenia though faces considerable challenges if it is to compete on
the international level.
Festering disputes with its two neighbours Turkey and Azerbaijan --
including over the disputed territory of Nagorny Karabakh -- mean
that much of its borders are sealed off.
Those in the IT sector remain bullish about the prospects for
development and point to steady growth rates of over 20 percent
despite Armenia's flagging overall economic performance.
"Our predictions show that by 2018 the IT sphere will become the
dominant sector in the country's economy and will bring in around $1
billion," said Vardanyan.
-Huge intellectual potential-
Some 500 tech firms are now working in the country and international
giants such as Microsoft have started getting involved.
"Our main task today is to maintain the current growth rates, increase
the number of specialists and then make sure they have well paid work
to stop them being attracted abroad," Vardanyan said.
For its part Armenia's government has thrown its weight behind the
industry by making it a priority economic sector and pledging that
more help is on the way.
"At this stage we have accumulated a huge potential for development,
but to move forward, we need to think and take new measures to help
new companies compete," Prime Minister Tigran Sarkisian said at a
recent unveiling ceremony for the ArmTab and ArmPhone.
"Now the government is preparing amendments to the legislation that
will mitigate tax conditions for Start-up companies," Sarkisian said.
Despite the challenges, all this leaves those at the forefront sector
optimistic for the future.
"In Armenia there is a huge intellectual potential and favourable
legislation that can help develop this sphere," says tablet producer
Chakharian.
"I am sure that in the next three to five years Armenia will become
famous for its IT production and the ArmTab and ArmPhone will be the
start of this."
Agence France Presse
April 1, 2014 Tuesday 3:37 AM GMT
: YEREVAN, April 01 2014
Once seen as a silicon valley of the Soviet Union, the tiny Caucasus
nation of Armenia is hoping the launch of its first tablet computer and
smartphone could kickstart a comeback for the country's tech sector.
Designed -- and soon set to be constructed -- in Armenia, the ArmPhone
and ArmTab devices are seen as a key steppingstone as the landlocked
state seeks to overcome crippling trade blockades from its neighbours
to become an unlikely industry hub.
"The high-tech sector in Armenia already has a long existence and now
we need to take it back to an international level," Vahan Chakarian,
president of the joint Armenian-US company Minno behind project,
told AFP.
"By building an Armenian tablet computer we'll create a brand that will
make Armenia more recognisable on the world market," Chakarian said.
Compared to major international brands funding and production targets
for the start-up are modest. The firm is spending some $6.5 million
over its first three years and aims to get manufacturing levels up
to some 100,000 items annually.
While the devices are designed by Armenian experts, up till now
production has been taking place in Hong Kong and the US. But those
behind the project hope that will change soon.
"We've been spending a lot of funds sending our Armenian specialists to
China to conduct quality tests where the tablets were being assembled,"
Chakarian said.
"Given the engineering capabilities in Armenia we plan in the near
future that all the work on the exterior and motherboard design and
software implementation will take place exclusively in Armenia."
The company already has a contract with Armenia's education ministry to
supply all first graders in the country with a tablet computer by 2015.
-Strong heritage, unfriendly neighbours-
For many the resurgence of the high-tech sector in Armenia comes as
no surprise. From computer systems in space ships to the electronics
in submarines, Armenia was at the heart of the USSR technology sector.
"One third of military electronics was designed and produced in
Armenia and there were several hundred thousand specialists worked
on developing and manufacturing computer technology," says Karen
Vardanyan, executive director at the Union of Information Technology
Enterprises in Yerevan.
Armenia though faces considerable challenges if it is to compete on
the international level.
Festering disputes with its two neighbours Turkey and Azerbaijan --
including over the disputed territory of Nagorny Karabakh -- mean
that much of its borders are sealed off.
Those in the IT sector remain bullish about the prospects for
development and point to steady growth rates of over 20 percent
despite Armenia's flagging overall economic performance.
"Our predictions show that by 2018 the IT sphere will become the
dominant sector in the country's economy and will bring in around $1
billion," said Vardanyan.
-Huge intellectual potential-
Some 500 tech firms are now working in the country and international
giants such as Microsoft have started getting involved.
"Our main task today is to maintain the current growth rates, increase
the number of specialists and then make sure they have well paid work
to stop them being attracted abroad," Vardanyan said.
For its part Armenia's government has thrown its weight behind the
industry by making it a priority economic sector and pledging that
more help is on the way.
"At this stage we have accumulated a huge potential for development,
but to move forward, we need to think and take new measures to help
new companies compete," Prime Minister Tigran Sarkisian said at a
recent unveiling ceremony for the ArmTab and ArmPhone.
"Now the government is preparing amendments to the legislation that
will mitigate tax conditions for Start-up companies," Sarkisian said.
Despite the challenges, all this leaves those at the forefront sector
optimistic for the future.
"In Armenia there is a huge intellectual potential and favourable
legislation that can help develop this sphere," says tablet producer
Chakharian.
"I am sure that in the next three to five years Armenia will become
famous for its IT production and the ArmTab and ArmPhone will be the
start of this."