Armenia Firms’ Adoption of Digital Technologies

Investment Rating - The report does not explicitly provide an investment rating for the industry. Core Insights - The report analyzes the digital technology adoption of Armenian firms based on a survey conducted in 2023, revealing that over 60% of firms have not adopted any modern technology, which significantly impacts their competitiveness and productivity [13][22][73]. - The findings indicate a substantial divide in digital technology adoption between high and low-performing sectors, with only 9.5% of firms using transactional technologies, while 22% use informational technologies and 20% use operational technologies [15][73]. - The report emphasizes that improving digital technology adoption is critical for enhancing productivity and reducing the technology gap with more developed economies [15][31]. Summary by Sections Executive Summary - The report assesses the digital maturity of Armenian firms through a comprehensive survey, highlighting the low adoption rates of modern technologies and the need for targeted public interventions to address market failures [13][15]. Introduction - The introduction outlines the economic context of Armenia, noting significant growth but also a disparity in productivity across sectors, which can be addressed through improved digitalization [31][32]. Firm-level Digitalization in Armenia - The section discusses the current state of digital infrastructure and technology adoption among firms, revealing that access to high-speed internet is a major barrier, with over 75% of firms lacking adequate connectivity [46][57]. - It categorizes technologies into transactional, informational, and operational, noting that firms primarily use basic digital tools rather than sophisticated technologies [69][73]. Key Challenges Faced by Armenian Firms - Firms report several challenges, including limited access to high-speed internet, lack of skilled workers, and insufficient management practices, which hinder their ability to adopt digital technologies [19][27][57]. - The report identifies that financial constraints and a lack of information about available digital tools are significant barriers to technology adoption [27][53]. Policy Recommendations - The report provides recommendations for improving digital technology adoption, including expanding digital connectivity, enhancing business advisory services, and addressing skills shortages through targeted training programs [20][27][48]. - It emphasizes the importance of building managerial capabilities to facilitate the integration of digital solutions within firms [27][48].