Research and Innovation in Armenia: Are We On the Right Path?

‘‘On the wisdom with which we bring science to bear against the problems of the coming years, depends, in large measure, our future as a nation.’’

”Science, the Endless Frontier”’

 Vannevar Bush

When explaining the Gituzh initiative and its ambitious, long-term vision for Armenia to individuals who are well-versed in the subject matter, two common questions often arise. The first one is, “How can the business and tech community kickstart such a complex nonprofit endeavor in Armenia, which requires long-term and unwavering commitment from the government side?” and the second one is, “Do government representatives truly grasp and appreciate the nature of your expectations?” 

The first question is easy to answer. Those who ask this question know that Gituzh is initiated by pragmatic and business-oriented communities in Armenia. These communities are known for being highly educated, innovative and well connected globally. They understand the importance of research and development for both business and the nation’s future. Therefore, when we explain that the initiators of Gituzh firmly believe that Armenia’s comprehensive advancement, sovereignty, and security can only be achieved through the revival of a robust R&D ecosystem, with the government playing an indispensable role, people easily understand the meaning of the statement. 

The second question, unfortunately, does not have a simple answer. A short answer would only scratch the surface. To fully address that question requires a more comprehensive explanation, delving into details and history. 

The Brilliance of Armenian Science in the Soviet Era and the Remaining Echoes of a Lost Legacy

Gituzh conducts its operations from the Mergelyan Institute at the Yerevan Scientific Research Institute of Mathematical Machines, a place that evokes a melancholic nostalgia for Armenia’s scientific achievements of the past. Once a thriving hub for research and development in computer technology and automatic control systems, both for civilian and defense applications, the institute was at the forefront of the latest technologies and research. It was even responsible for designing a telecommunications system project intended for the Soviet moon mission. 

Today, the institute’s halls have transformed into diverse office spaces and an expo center. And it’s not just limited to Mergelyan. As you walk through various institutes that have endured during these years, you can hear the echoes of the lost legacy of figures like Alikhanyan, the Orbeli family, Iosifyan, Ambartsumian, Takhtajan, Stepan Markosyan and many other scientists, engineers and professors that crafted a tapestry of excellence in science and technology in Armenia during the Soviet era. 

According to the memories of the older generation of competitive scientists, during that time, an estimated 30,000 to 33,000 scientists were actively engaged in research within numerous research institutes and specialized branch institutes dedicated to applied research, and development, and driving innovation across various fields. 

According to the Statistical Committee of the Republic of Armenia, in 1989, a few years before the collapse of the Soviet Union, Armenia had over 47,000 individuals involved in science and its adjacent fields, with 27,000 of them being women.[1]

Scholar and Secretary of the National Academy of Sciences (NAS), Artur Ishkhanyan, highlighted that Armenia held a notable position globally with regard to the number of scientists per one million inhabitants. Furthermore, around 5% of the GDP was allocated to science. 

Scientific and engineering professions held an esteemed status and were considered among the most valuable roles within society. Initially, scientists were highly respected and recognized for their pivotal contributions to the community. This is not to say that the Soviet Union was an ideal environment for scientists. While there were certain advantages within the system, these were highly overshadowed by a multitude of disadvantages and problems. Simon Ings, in his book “Stalin and the Scientists: A History of Triumph and Tragedy 1905–1953”, delves into the intricate details of those problems.

We must never forget that Armenia was a peripheral country within a larger empire and, to this day, we are still contending with the consequences of the Soviet era—especially in the realms of social sciences, humanities, as well as certain crucial aspects of our history and heritage. But today, as an independent country, we must not diminish the importance of acknowledging and valuing the accomplishments of that era, and we should not avoid criticizing the leaders and other decision-makers who took that legacy for granted and utterly failed to uphold it, and who allowed it to  decay over the past three decades of our independence.

Today, the number of individuals involved in science in Armenia is fewer than 3,600. This number includes those who work part-time, balancing scientific work alongside other occupations. Approximately 1000 are above 65 years old. The number of active scientists among those 3,600 individuals is approximately only 1,000 to 1,400. 

Virtually all, if not every single branch institute responsible for scientific applications have either been shut down, dismantled, or sold and subsequently demolished. The remaining institutes, such as the Alikhanian National Laboratory and the public research institutes functioning within the National Academy of Sciences and various ministries, have continued to engage in science with insufficient funding and a lack of broader recognition of its strategic significance. 

The scientific output (articles published in high-impact factor journals) continues to gradually decrease. This can be simply observed even by exploring the SCImago Journal & Country Rank, a publicly available portal that compiles journals and scientific indicators by country. These indicators are based on information from the Scopus database (Elsevier). Examining the statistics from the past decade and comparing them with those of neighboring countries, namely Georgia and Azerbaijan, would be a worthwhile endeavor. 

Another vital indicator that reflects a country’s commitment to research and development is funding. Thanks to Gituzh’s extensive advocacy efforts, science funding increased for 2021 and 2022. 

Following these increases in the state budget for science, the Science Committee of Armenia’s Ministry of Education, Science, Culture and Sports, now changed to the Higher Education and Science Committee, launched new grants for scientists from the diaspora and abroad. The primary aim of these grants is to attract globally competitive scientists with well-established achievements,  establish a community of young researchers, and reshape the scientific culture and environment in Armenia. However, a question arises: will bringing 5-10 scientists annually or connecting 15–20 scientists remotely to Armenia, without any bold targets or strategic approach to choosing the scientific fields, change the overall negative trends?

Furthermore, despite the government taking an important and necessary step by increasing funding for science, the allocation remains low (around 0.3% of GDP for 2022) compared to international levels and UNESCO and OECD standards. This fact is also reflected in the latest United Nations Economic Commission for Europe (UNECE) report “UNECE Innovation for Sustainable Development Review of Armenia 2023.”

Unfortunately, the government of Armenia continues to disregard the Gituzh community’s calls to allocate the equivalent of 1% of Armenia’s GDP to Science & Technology to develop a robust and continuously evolving National Research & Innovation System (NRIS) capable of tackling the challenges faced by Armenia.

While the advancement of Armenia’s defense capabilities remains highly crucial, there has been a persistent issue of underutilization in the budget allocated to the Military Industry Committee within the Ministry of High-tech Industry for Defense R&D. This pattern of underspending in this area has persisted for several consecutive years. In 2020, expenditures fell short, and in 2021, only 1.17 billion AMD out of the allocated 4.7 billion were actually spent. As for 2022, they spent 3 billion AMD from a total R&D defense budget of 5.2 billion AMD. Unfortunately, it would not be surprising if the ministry once again fails to fully utilize this year’s budget.

Furthermore, defense R&D expenditures constitute nearly all expenses for applied research and development in Armenia. According to the 2022 budget report, they account for only 12% of the R&D budget, a figure significantly lower than the proportion in nations that view R&D expenditures as a means to enhance competitiveness, where it often exceeds 50%.

As a result of the increased funding mentioned earlier, scientists’ salaries have been increased, and there are promises of further increases in the coming years.

In 2021, the average salary for a chief researcher was 138,000 AMD. By 2025, that amount is estimated to rise to 553,000 AMD. Similarly, the average monthly salary for a researcher in 2021 was 90,400 AMD. By 2025, it is anticipated to reach 276,000 AMD. The salary for the head of the scientific department, which was 141,400 AMD in 2021, is expected to increase to 477,200 AMD by 2025.

In 2023, the basic salary fund is estimated to be approximately 10 billion AMD. In 2024 and 2025, this fund is projected to increase to approximately 12.4 billion and 14.4 billion AMD, respectively. 

Last but not least, over the course of the past three decades, scientists have experienced a notable decline in their social standing. Regrettably, scientific exploration and knowledge creation have been underappreciated and underestimated by the government and society at large. This decline in the social status of scientists has had far-reaching implications, not only for the scientists themselves but also for the progress of our country and society as a whole.

The marginalization of scientists can be attributed to a variety of factors, including a lack of public understanding of the significance of their work, the prioritization of short-term economic gains over long-term scientific advancements, and the creation of a knowledge-driven economy, which is vital for sustainable growth and innovation. Lastly, there has been a general cultural shift away from valuing intellectual pursuits. The undervaluing of scientific knowledge has led to a lack of appreciation for the critical role that science plays in confronting challenges related to Armenia’s security and development.

Upon becoming a public initiative, the Gituzh community took one of its initial actions by collaborating with diverse journalists and media platforms. Our aim was to advocate for consistent and regular media coverage of scientists, emphasizing the significance of scientific endeavors. This is not only crucial for Armenia’s progress and security, but also for the overall well-being of every individual.

Although there has been some improvement in understanding and promoting science, the current progress is still inadequate. We have a long way to go before reaching our desired goals. To truly make a difference, we need to address this issue on a more institutionalized nationwide level.

In this regard, Gituzh conceptualized and proposed the “Armenian Science Week” initiative, which was subsequently endorsed by the Science Committee of the Ministry of Education, Science, Culture, and Sport of the Republic of Armenia. This pioneering project seeks to establish enduring platforms for global scientific dialogue and the nationwide dissemination of scientific knowledge. The inaugural week-long event is scheduled to take place in September 2024. In order to achieve this goal we need the full commitment and uncompromising collaboration from the government. 

Resurrecting Brilliance: Crafting a Holistic Blueprint for a National Research and Innovation System 

The Republic of Armenia has a strong and resilient R&D ecosystem that enables us to overcome the challenges and problems facing our country, continuously enhances the development of our statehood and society, and contributes value to the world. 

Vision of the Gituzh initiative for the Republic of Armenia

The word “national” in the context of the research and innovation system doesn’t mean localism or isolation from the world or global networks of science and innovation. Quite the opposite, it signifies the development of a resilient and globally competitive system tailored and developed to meet Armenia’s unique requirements and objectives. In order to work effectively and produce results, this system has to be closely integrated with other significant research and innovation systems in the region and major hubs of scientific advancement and innovation worldwide.

The term “national” carries significant weight in this context. Its purpose is to empower Armenia to leverage research and development as a tool to achieve its vision and goals for security and development. Without establishing such a system, our efforts in research and development will fall short in effectively addressing the challenges faced by the Republic of Armenia. Moreover, they will not meet the specific requirements vital for our nation’s well-being and overall progress.

Furthermore, the lack of such a well-structured system can hinder significant advancements in technology, science, or the economy through leapfrogging. This system should include essential elements like national policy frameworks, legal regulations, streamlined processes, and productive collaborations. These collaborations should involve key government entities, industry stakeholders, non-governmental organizations (NGOs), public research institutes (PRIs), research universities, the National Academy of Sciences, and global partners.

To illustrate this point, let’s focus on the high-tech industry. Despite Armenia’s low level of innovation, the high-tech industry stands out as a haven where some degree of innovation occurs. In the tech sector in Armenia, there are approximately 2,500-3,000 companies offering a variety of IT services and independently creating new and innovative products. This sector’s growth has been remarkable, increasing from contributing 1.2% of the GDP in 2010 to 5.1% in 2020. Recognizing the crucial significance of fostering a high-tech ecosystem in Armenia, two key questions remain unanswered: 

Firstly, it is important to establish appropriate vision and policy frameworks to ensure that both big high-tech companies and small ones with robust potential, which are venture capital-backed and registered outside of Armenia, can actively contribute to the economic and technological advancement of the country.

Secondly, we need to consider whether it is possible to achieve sustainable development of our high-tech sector in alignment with Armenia’s needs without first focusing on building a research and innovation system to support this goal. However, these are complex questions that require dedicated articles to thoroughly address them.

Israel, South Korea, Taiwan, Singapore, Ireland, and several other countries, despite taking vastly divergent trajectories in their pursuit of scientific and technological advancements, all share a fundamental similarity. They recognize that the challenges they face are highly complex. This requires a steadfast vision, unwavering dedication, a forward-thinking perspective, and well-crafted but adaptable strategies that can be easily adjusted in response to shifts and advancements in the relevant sectors.

In conclusion, a fundamental truth persists: In the absence of a thorough and well-planned strategy implemented at a national level, which encompasses all sectors of government and is supported by sufficient resources, it’s impossible to establish a national research and innovation system that effectively serves the needs of both the nation and the country. Without such a system, achieving genuine competitiveness and cutting-edge advancements in science and witnessing their practical applications, including innovation and knowledge-based economic growth, remains beyond reach.

Returning to the second question raised in the introduction, it must be acknowledged that despite some positive steps and activities in the field of science, the condition of science in Armenia is unfortunately deteriorating. This is primarily attributed to the lack of strategic and holistic approaches from the government. While it may be challenging to openly admit, confronting reality is the initial step one must take to progress and discover the correct approaches, methods, and resources needed to address the issue at hand. 

Hence, the top priority for the government should be the recognition of the National Research and Innovation System (NRIS) as a valuable asset, along with the recognition of research and development (R&D) expenditures as a means to enhance national competitiveness. Armenia must commit to developing this asset and allocating more resources for R&D.

No one should dare say that it’s impossible. In 1968, Israel’s industrial sector had only 886 R&D workers, but now they are one of the world’s leaders in terms of R&D workers per million population. Despite being surrounded by hostile neighboring countries, Israel’s visionary leaders recognized from the beginning that R&D was essential for ensuring their nation’s security and sustainable development. As a result, they established a strong national research and innovation system.

Personal Addendum 

As an Armenian, it breaks my heart to witness the recent developments in Artsakh and contemplate the fact of being the first generation of Armenians to witness the annihilation of Armenians from Artsakh. I cannot help but question: What have our past and current political elites truly done to prevent this, besides engaging in empty rhetoric and lacking substantial political action? Throughout our years of independence, we have not adequately invested in the fields of science and education, which has hindered the development of necessary human capital and infrastructure to address our challenges. Furthermore, we still lack a comprehensive understanding of the root causes of our current situation, let alone the formulation of institutional and strategic solutions to address them.

We have talked the talk, but almost never walked the talk.

Footnotes:

[1] The National Economy of the Armenian SSR, 1989; Statistical Yearbook, page 20-22

EVN Disrupt

Creative Tech