Why Tech Matters
The idea behind this column is simple: while we often reference the incredible global asset that the Diaspora is for Armenia, we have yet to find a formula for the systemic engagement of this asset for Armenia’s development. Yes, there are ample individual examples of diaspora-Armenia cooperation leading to significant progress forward for the country, but no structured, concentrated and coordinated effort to put into play the full force of the diasporan network across sectors of Armenia’s economy. Over the next few months, we will explore not only successful examples of this cooperation, but highlight areas where a similar approach will lead to outsize benefits.
Raffi Kassarjian is CEO and Principal Advisor at Sensyan, a boutique advisory firm focused on the growing Armenian tech sector. Since moving to Armenia in 2008, Raffi has led the following organizations as CEO: iCON Communications (pioneer wireless internet service provider), TeamViewer Armenia (also serving as Senior Vice President at TeamViewer GmbH), and the Union of Advanced Technology Enterprises (UATE). He was also a member of the Management Board of Converse Bank Corporation. Previously, Raffi was Vice President and General Manager at Fair Isaac Corporation (NYSE: FICO). Prior to Fair Isaac, he was a Senior Manager with Accenture’s Strategic Services practice.
Raffi is an adjunct lecturer at the American University of Armenia, and founding board member of Repat Armenia Foundation, Impact Hub Yerevan, and EVN Report.
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When considering models for tech industry growth that Armenia might emulate, certain countries are often mentioned: Estonia, Israel, Singapore, and Switzerland. A less frequently cited example, however, is Ireland—a nation with just over 5 million people (compared to Armenia’s 3 million), and, until the late 20th century, a primarily agrarian economy with limited natural resources. Ireland and Armenia share another common feature: each has a global diaspora that far exceeds the home country’s population, driven largely by economic migration in the 19th century and by economic and political migration throughout the 20th century. Over the last 40 years, Ireland has experienced rapid economic growth. In 1985, its GDP and GDP per capita were similar to Armenia’s current levels ($20 billion and $6,000, respectively). By 2023, Ireland’s GDP had reached $545 billion (a 27-fold increase) and its GDP per capita $103,000 (a 17-fold increase, three times the EU average). Many factors contributed to this growth, including significant investment from the European Union. But Ireland also benefited greatly by hosting the European headquarters of large U.S. corporations, including technology giants like Intel, Dell, Apple, and Google.
How did Ireland achieve such dramatic growth, and if multinationals played a key role, how did Ireland attract them? Language and attractive tax incentives helped, as did Ireland’s proximity to North America. The Irish government also made strategic use of its diaspora, particularly in the U.S., to attract foreign direct investment (FDI). In the late 1980s and early 1990s, IDA Ireland, the national inward investment agency, identified board members with Irish-sounding surnames at major North American tech firms, seeing the diaspora as a potential asset. Intel’s choice to establish its first major European manufacturing site in Ireland illustrates this well: Intel initially considered a dozen locations, but Ireland wasn’t at the top of the list. One key decision factor was the availability of qualified talent in the chosen country, so the Irish government hired an agency to contact Irish engineers in the semiconductor industry, asking if they’d be willing to return to work for Intel in Ireland. Over 80% expressed interest, which contributed to Intel’s decision. In the decades since, Intel has invested more than $20 billion in Ireland.
The Irish government also transformed its foreign missions in strategic cities into multi-purpose “Ireland Houses” that include representatives from IDA Ireland, Enterprise Ireland (focused on exports), and Tourism Ireland, making them one-stop shops for Irish interests abroad. The government’s Emigrant Support Program (ESP) has also funded diaspora initiatives in key markets, shifting in recent years from a focus on cultural to economic diplomacy.
Private sector initiatives further enhanced these efforts. The Ireland Funds, founded in the late 1970s by Pittsburgh Steelers owner Dan Rooney and media mogul Tony O’Reilly, raised over $700 million to support Irish causes, envisioning an “army of affinity” for Ireland—a network of influential people committed to the country’s welfare. When high-profile figures in tech or finance attended Ireland Funds events, their peers wanted to participate, creating a dynamic network which could be leveraged for key initiatives beyond fundraising. In another example, when talent became a vital resource and few in Ireland could afford college, Irish-American philanthropist Chuck Feeney donated $2 billion to Irish education, recognizing its role in strengthening the economy and laying the groundwork for FDI. Craig Barrett, former Intel CEO, founded the Irish Technology Leadership Group (ITLG) in 2007 to connect Ireland with Silicon Valley, facilitating FDI and opening opportunities for Irish startups by rallying over 20,000 tech executives of Irish descent into a network of influence.
Lessons for Armenia
Many parallels exist between the Irish and Armenian experiences, particularly in leveraging influential diaspora networks to gain a competitive edge in attracting FDI. However, in Ireland’s case, public and private sector efforts are well-coordinated, offering a valuable model for Armenia as it seeks to fuel its next phase of economic growth. In Ireland, the government set a clear agenda, implemented specific programs, and facilitated private sector leadership in complementary initiatives.
In Armenia, government efforts are limited, and private sector initiatives are often fragmented and duplicative, resulting in suboptimal outcomes. Where can Armenia begin? The government could bring together various diaspora-led efforts within a coordinated national strategy, addressing key sectors one at a time. For instance, in healthcare, numerous initiatives led by diaspora physicians aim to improve medical capabilities in Armenia by donating equipment, bringing in specialists, and introducing modern techniques. A national strategy could prioritize these initiatives, focusing efforts on Armenia’s greatest healthcare needs. Similarly, in education, many diaspora-led initiatives target different aspects of primary, secondary, and tertiary education with minimal coordination. A national council could oversee these efforts, prioritizing regions, subjects, and age groups.
In tech, organizations such as ArmTech, FAST, ARPA, HyeTech, Hive, and several company-led programs have launched various initiatives, but the top 20 Armenian tech executives globally have likely never gathered in the same room. Imagine the impact if Armenia had a unified, global network of tech executives working toward shared goals—investing in STEM education, driving the adoption of advanced technologies and infrastructure, mobilizing Armenian professionals at key FDI target companies, and creating a distributed network of mentors and “connectors” to help Armenian startups penetrate respective markets more quickly and effectively. This last point merits further exploration, and will be the subject of the next article in this series. At the same time, the development of a national high technology sector strategy (currently being developed), can serve to coordinate, focus and amplify Armenia’s efforts to double-down on its tech achievements, if there is significant and meaningful involvement from the global tech diaspora.
Note: The author would like to thank and acknowledge Dr. Martin Russell, founder of Global Diaspora Insights, for his invaluable insight on the interaction between Ireland and its global diaspora.
