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Armenian Kids Innovate Amidst Trade, Security Shifts

Armenian Kids Innovate Amidst Trade, Security Shifts
## Armenian Kids Drive Tech Innovation Amidst Geopolitical Shifts

YEREVAN, Armenia — While navigating complex geopolitical challenges, Armenia is fostering a thriving tech sector, fueled in part by a burgeoning youth population embracing innovation. A nationwide program, Armath ("root" in English), established in 2014 by the Union of Advanced Technology Enterprises (UATE), is cultivating the next generation of Armenian engineers. The program, a public-private partnership involving over 200 high-tech companies and a $2 million annual government contribution, currently boasts 650 labs in schools across the country, training over 17,000 students with 600 coaches. The goal, according to UATE CEO Sarkis Karapetyan, is to produce 5,000 engineers annually.

Armath students are already creating impressive projects. Nine-year-old Slavik designed a box with controllable LED lights; 14-year-olds Eric and Narek developed a smart greenhouse; and 11-year-old Arakel built a house model with a retractable, rain-proof clothesline. These projects highlight the program's success in teaching programming, robotics, coding, and 3D modeling. This initiative builds upon Armenia’s Soviet-era legacy in mathematics and computer science, leveraging its historical strength in technology.

Armenia's tech sector is already seeing success stories, including Picsart, a $1.5 billion AI-powered photo and video editing company with headquarters in Yerevan and Miami; Krisp, an audio-processing software company; and Service Titan, a business software provider that recently reached a $10 billion valuation after its New York Stock Exchange listing. Armenia's ranking as the best country in the Caucasus for launching a company (57th globally) further underlines its growing appeal. The country's large diaspora, particularly in the US, also plays a vital role, providing connections and support for Armenian entrepreneurs. SmartGate, a venture capital firm with offices in California and Armenia, actively assists Armenian startups in navigating the US market.

However, Armenia faces challenges. While the lifting of a ban on Turkish goods in 2021 has led to a significant increase in imports from Turkey ($336 million in 2024, compared to negligible exports), the country's closed borders with Azerbaijan and Turkey, due to unresolved territorial disputes, remain a factor. The influx of Russian IT specialists following the 2022 Ukrainian invasion has filled skill gaps but also introduced new economic considerations, including concerns about the cost of living and taxation. The Armenian government is actively working to secure its borders, with Prime Minister Nikol Pashinyan highlighting the increased presence of Armenian border guards and ongoing efforts to strengthen border security. Despite these challenges, the innovative spirit of Armenian youth, coupled with the growth of the tech sector, suggests a promising future for the country.

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