The formation and development of a knowledge-based economy is one of the strategic priorities of the economic policy of the Republic of Armenia. A knowledge-based economy is based on the effective use of knowledge, science, technology, and innovation as the main drivers of economic growth, competitiveness, and sustainable development. Its goal is to create, disseminate knowledge, and transform it into economic value, contributing to increased productivity, technological modernization of the economy, and the development of industries that create high added value, expanding Armenia's export potential and strengthening its international competitiveness.
The main pillars of a knowledge-based economy include the continuous development of human capital, the promotion of research and development (R&D), the development of innovative and digital infrastructure, the strengthening of science–education–business cooperation, technology transfer and commercialization, effective protection of intellectual property, as well as the encouragement of knowledge-intensive and technological entrepreneurship. The interconnected development of these components contributes to the formation of an innovative ecosystem, the attraction of investments, and the enhancement of economic resilience.
The Department of Knowledge-Based Economy develops and implements state policy in the fields of the knowledge-based economy, innovation, and technological development, contributing to the formation of a competitive and sustainable economy based on knowledge, science, technology, and innovation. The Department’s activities are aimed at promoting the practical application of research outcomes, developing cooperation among science, education, and the private sector, establishing effective mechanisms for technology transfer and commercialization, as well as improving the intellectual property system and its efficient management.
At the same time, the Department of Knowledge-Based Economy coordinates the digital transformation, modernization, and development of services and information systems provided by the Ministry of Economy of the Republic of Armenia. Within this framework, measures are implemented to ensure the compatibility of state information systems, safe and efficient data exchange, the digitization of business processes, and the improvement of the accessibility, quality, and efficiency of electronic services provided to citizens and business entities.
Armenia's progress toward innovation and the development of a knowledge-based economy is also reflected in international assessments. According to the 2025 Global Innovation Index published by the World Intellectual Property Organization (WIPO), Armenia ranked 59th among 139 economies, improving its position by four places compared to the previous year. Furthermore, Armenia ranked 11th among 36 upper-middle-income countries and 9th among 18 economies in the North Africa and West Asia region, demonstrating the country's innovative potential and continuous progress in developing a knowledge-based economy.