The state of the National Innovation System of Armenia

Innovation drives growth in both companies and national economies. At the national level, governments develop instruments and policies to foster the science, technology and innovation activities of private sector. This study explores the role of other actors, such as firms and universities, in the transition from the old (Soviet) to a new (market) innovation system. It provides a description of Armenia’s National Innovation System (NIS) and identifies differences in the transition context before and after the collapse of the Soviet Union due to historical heritage, technological specialization and innovation culture. Having been a highly industrialized economy during the Soviet era, Armenia faced challenges of societal transformation together with the need to establish a new innovation system on the ruins of the old one. This study points to the important role of “Soviet culture†and new institutional reforms in facilitating innovative capacity-building and learning that help better understand the country’s innovative performance.