Russian emigration turbocharged the country’s tech scene. The trick now is keeping it going.
Armenia stumbled into geopolitical fortune. When Moscow launched its war in Ukraine in 2022, educated Russians—particularly IT specialists—fled to avoid mobilisation or express opposition. Many landed in Yerevan. The result: a sudden influx of talent and capital that turbocharged Armenia’s already-growing tech sector.
The numbers tell the story. Armenia ranks 54th globally in StartupBlink’s 2025 rankings, up three places with 22.8 per cent annual growth. It hosts 99 start-ups—roughly four per 100,000 people—representing 1 per cent of Eastern Europe’s total and placing 13th regionally.
Armenia boasts one unicorn: PicsArt, valued over one billion US dollars. The photo and video editing platform claims more than 100 million monthly users. Its acquisition of DeepCraft, another Armenian start-up, suggests the ecosystem is maturing beyond first-generation ventures. Other notable firms include Renderforest (online video production), Krisp (noise removal for remote workers), and SoloLearn (coding education for 29 million users). Reddit co-founder Alexis Ohanian, of Armenian origin, actively backs the local scene.
Software and data outfits dominate, ranking 34th globally and fifth in Eastern Europe with 54 start-ups (55 per cent of the total). Between 2017 and 2025, Armenian start-ups attracted over 2.16 billion US dollars in investment—4.08 per cent of Eastern Europe’s total. Funding grew 16.54 per cent between 2023 and 2024, though deal numbers fell 52.38 per cent. Yerevan serves as the country’s sole ranked innovation hub.
Government support operates through the Ministry of High-Tech Industry, which provides tax incentives and targeted investments, alongside Free Economic Zones allowing full foreign ownership. The Digital Transformation Strategy (2021–25) and Digital Agenda 2030 outline plans covering infrastructure, digital management, private-sector transformation, digital skills, and cybersecurity. Armenia began developing e-government systems in 2000; integrated platforms like e-gov.am now handle much of the load. In May 2025, revised cybersecurity and public information laws were released to strengthen data protection. Tech4Armenia, a public-private partnership, expands STEM education access.
Reinvantage’s IT Competitiveness Index places Armenia 22nd out of 32 countries, above Georgia by 1.48 points and below Montenegro by 0.44 points. The country ranked 19th last year. Without new entrants, Armenia would rank 16th—three positions better than before. Performance is strong in Economic Impact (11th) and Talent (14th) but weak in Business Environment (29th).
The Russian emigration effect shows up clearly in the data. Average gross ICT salaries stood at 2,028 euros in 2024, representing 134 per cent growth since 2020—the third-highest among surveyed countries, with a huge spike in 2022. This outpaces the nearly 99 per cent economy-wide wage growth. ICT employment reached roughly 44,000, up 65 per cent since 2020. The sector’s share of employment surged from 2.55 per cent to 3.78 per cent—above the regional average.
Students in ICT-related fields grew almost 22 per cent between 2022 and 2024. Graduates increased less than 10 per cent, indicating a significant influx of entrants since 2023 yet to show up in graduate numbers. ICT services exports reached 4.58 per cent of GDP—almost twice the average (excluding Cyprus). Value added stood at 5.51 per cent versus the 4.59 per cent average. Armenian computer services are highly export-oriented.
The question now: Can Armenia convert temporary advantage into lasting competitiveness? Russian emigrants came because of war and mobilisation. If conditions normalise, they may leave. Building an ecosystem resilient enough to survive that exodus—one that retains talent through opportunity rather than geopolitical accident—will determine whether Armenia’s tech boom proves durable or merely a wartime windfall.
You can find out more about Armenia’s tech sector, as well as those of 31 other countries, in the Reinvantage Future of IT 2026 report.
Photo: Dreamstime.
