Armenia to Create Technology Transfer Offices to Turn Scientific Developments into AI Startups

The Ministry of High-Tech Industry and Artificial Intelligence of Armenia is preparing to establish technology transfer offices to help scientists turn research and inventions into commercial products and startups. The initiative is also expected to simplify investors' access to projects with proprietary intellectual property.

Simultaneously, the ministry is developing support measures for small and medium-sized enterprises (SMEs), which are currently hindered from adopting artificial intelligence due to a lack of qualified specialists and insufficient understanding of the practical benefits of such technologies.

From Scientific Development to Commercial Product

The ministry's plan was presented by Deputy Minister Tatev Aslanyan at a seminar in Tsaghkadzor. The event was part of the "Digital Transformation for SMEs" (DT4SME) program, which the ministry is implementing in collaboration with the Organisation for Economic Co-operation and Development (OECD) and the German Agency for International Cooperation (GIZ).

According to Aslanyan, scientists will need support at all stages of commercialization of developments – from assessing market demand to creating a minimum viable product (MVP) and entering the market. For the transition from scientific activity to entrepreneurship, researchers also need to acquire new practical skills.

In collaboration with the Ministry of Economy, the agency is preparing recommendations for the legal protection of inventions. They should take into account the interests of scientists, universities, and the state, as well as create conditions for attracting investments.

Barriers to AI Adoption in Business

A separate topic of the seminar was the challenges faced by small and medium enterprises in adopting artificial intelligence. Participants identified two main obstacles: a lack of qualified personnel and a weak understanding of the economic value AI can bring to companies.

To address these issues, the ministry intends to develop support mechanisms and incentives that will make technologies more accessible to entrepreneurs.

The OECD, GIZ, and the Armenian agency have already prepared a roadmap for the digitalization of SMEs. However, according to Aslanyan, the document needs to be updated to reflect the development of artificial intelligence and new challenges for businesses.

The Deputy Minister also agreed with GIZ to involve experts from Berlin Economics. In the coming weeks, they will help assess the feasibility and practical implementation of the technology transfer office concept.

In the long term, the authorities aim to form an economy focused on creating proprietary intellectual property and bringing competitive companies to international markets.

How the Initiative Relates to the Development of Armenia's AI Infrastructure

The establishment of technology transfer offices complements the development of the country's computing infrastructure. In August, the first phase of the Firebird AI center near Razdan was put into operation. Investors have invested $500 million in more than 6,000 Nvidia Blackwell processors. By the end of 2027, their number is planned to increase to 100,000.

Thus, the discussion in Tsaghkadzor was dedicated to the next stage of industry development: creating conditions under which researchers and companies can use available computing power to develop their own products.

Previously, the ministry also began collecting proposals from companies and startups to prepare AI regulation. There is no finalized draft law yet. Among the issues being discussed are access to Firebird's computing resources and the protection of intellectual property.

Additionally, about 40 days before the seminar, Aslanyan urged American investors to invest in Armenian projects in the field of AI and semiconductors. One of the priorities she named was a five-year human capital development program.

According to the Deputy Minister, for the transition from a service economy to the creation of proprietary technological products, the country needs not only investments and computing infrastructure but also qualified specialists and mechanisms for turning scientific developments into commercial projects.