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How Can Government Policies Stimulate Entrepreneurship?
Box 5.2 Case Study: Synopsys CJSC Armenia—A Foreign Investor Playing a Pivotal Role in Armenia’s Information Technology Sector (continued)
Company strategy Synopsys Armenia has invested heavily in microelectronics education and is engaged in many cooperative programs with major universities such as the State Engineering University of Armenia, Yerevan State University, Moscow Institute for Electronic Technology, and RussianArmenia (Slavonic) University. About 500 students have graduated from these programs, with a fifth of them aimed for the Russian Federation’s semiconductor workforce market. Based on industry cooperation with participating universities, the department aims to train highly qualified specialists in the field of very large scale integration design and electronic design automation, who will meet the specific requirements of semiconductor and information technology companies. To support this effort, Synopsys put in place computer laboratory infrastructure and donated hundreds of electronic design automation software tool packages to participating universities. Teaching, supervision of course projects, diploma works, master’s theses, and doctoral dissertations are targeted at real industry projects at Synopsys Armenia and are completed jointly with leading professionals from Synopsys and experienced professors from the university. Perceived role of the government There is now a perceived pressure of a rapidly expanding information technology market, which the company very much helped develop. It is facing considerable staff turnover, losing people to other emerging players in the country, and rising salaries. This squeezes the expected benefits from the heavy investment in education and training and puts pressure on the business. Synopsys management feels that the government should continue with investment in information technology infrastructure and invest more heavily in information technology education, including inviting tie-ups with foreign advanced education institutions.
produced are relevant to industry. Collaborating with overseas universities (for example, in Australia and the United Kingdom) could be an additional channel for effective human resources development. Foreign universities can help develop and upgrade curricula and teaching materials as well as provide teaching staff. Second, Armenia has a vast diaspora (about 6 million people) who are highly skilled. There needs to be a concerted effort to tap into their knowledge and skills both in short-term measures as well as longer term engagements with industry, research organizations, and higher education institutions. The government’s ongoing efforts could be further strengthened to attract skilled Armenian researchers and academics to contribute and encourage collaborative programs between Armenian nationals abroad and research institutes and universities in Armenia. These could include taking Armenian students into their labs or research institutes and providing lectures when they return home to visit their families. Taiwan, China, offers an example of an effective program. The Taiwanese National Youth Council formulated policies in the 1970s that connected Taiwanese businesses with skilled migrants, garnering synergies from these Fostering Entrepreneurship in Armenia • http://dx.doi.org/10.1596/978-1-4648-0064-1