The Growth of Startups in Developing Countries: What Lessons Can Armenia Learn?

Lesson 1: The Link Between Education and the Ecosystem (Israel and Estonia)

Israel, nicknamed the "Startup Nation," owes its success to three main factors:

1. High-level military education: The majority of tech professionals have received military education in cybersecurity and data analysis, which has created a powerful layer of human resources.
2. Culture of risk: In Israel, failure is seen as a way to gain experience, not as the end of a career.
3. Active government support: The government provides financial support to startups and actively works to attract foreign investment.

Estonia, in turn, has focused on digitization, creating an "e-Estonia" where almost all state services are available online. This has not only created an efficient administration but also enabled startups to rapidly develop their digital products.

Lessons for Armenia

Armenia can deepen technical and engineering education in universities, foster a culture of risk, and ensure maximum digitization of state services, which will ease the operations of startups.

Lesson 2: Development in a Specific Sector (Vietnam and China)

Vietnam and China show that it's important to focus on a specific sector. Vietnam is primarily developing in the fields of mobile applications and fintech. China has become a leader in AI and e-commerce. They survived because they didn't try to compete in everything; instead, they focused on their strengths.

Lessons for Armenia

Armenia can focus on the sectors where it already has strengths: microelectronics, cybersecurity, and AI. This will allow for faster accumulation of experience and attraction of specialized investments.

Lesson 3: The Return of Talent and International Cooperation (India and Argentina)

India and Argentina have huge diasporas. These countries have created programs that encourage the return of professionals who have received higher education abroad. They play a crucial role as a bridge between the local market and foreign investors.

Lessons for Armenia

Armenia's large diaspora can become an important resource for the tech sector. Programs should be created to incentivize the return of talent or ensure close cooperation with them through investment and experience exchange.

Lesson 4: Collective Identity and Brand Building

Successful developing countries have managed to create a unified brand that is known worldwide. For example, Israel is known as a hub for hardware and cybersecurity innovation, while Estonia is known as an "e-state." This allows them not only to attract investment but also to act as experts on the international stage. Armenia can build its brand by focusing on, for example, deep mathematical and engineering knowledge.

Lesson 5: The Role of Government and Reducing Bureaucracy

The role of the central government in developing the startup ecosystem is crucial. Israel's example shows that state support, flexible tax policies, and reduced bureaucracy can stimulate the growth of the sector. Armenia still has many bureaucratic obstacles that slow down the registration and operation of new companies. Overcoming these will be a key step towards revitalizing the startup scene.

The experience of developing countries shows that the technological revolution is not limited by geography. Armenia can become a regional tech hub by applying the lessons of these countries:

1. Investing in education and research.
2. Focusing on strong sectors.
3. Actively working with the diaspora.
4. Building a unified brand.
5. Government support and reduced bureaucracy.

This will be the path toward a sustainable and efficient technological future.