According to the “Strategy of export-led industrial policy of the Republic of Armenia”, Precision Engineering -as part of the knowledge-based industry sector - has been highlighted to have significant export potential for Armenia, possibly being one of the main drivers for the economic growth of the Republic.

This potential of Precision Engineering is stemming from the major role it played in the industrial production within the former Soviet Union. At its peak, 29,500 people were employed achieving 30% of the total industrial production of the former Soviet Union, representing a centre of excellence in this field. The focus on Precision Engineering and technology intensive sectors in general, is thus very promising for the Armenian economy as well as for its international reputation.

However, since the sector declined after the independence of the country, one of the main barriers for the re-development of the sector is the lack of a network, connecting the different stakeholders in the ecosystem. Especially an online networking platform, where companies/ institutions/ laboratories can present their activities, assess the Precision Engineering ecosystem and learn about new opportunities not least due to collaboration possibilities with other companies would support in this development.

Therefore, the Precision Engineering Project was taken up as part of the "Support to SME Development in Armenia (SMEDA)" project to overcome some of the challenges in this field. After identifying the barriers and challenges for the development of the Precision Engineering sector one of the main outcomes was a sector study with a mapping of almost all relevant companies from the sector – about 200 companies were identified and can be found here. For comparison: In 2003, according to the “Precision Engineering Industry in Armenia” report by the Armenian Development Agency, there were around 30 Precision Engineering companies identified, employing 4,300 people.

With the help of this extensive database, not only communication and cooperation within the ecosystem is fostered but also the enhanced visibility enables insights for international organisations and potential customers. SMEDA is co-funded by the European Union and the German Federal Ministry for Economic Cooperation and Development (BMZ) implemented by GIZ’s “Private Sector Development in South Caucasus Programme”. SMEDA is part of the EU4Business (www.eu4business.eu) and EU4Innovation initiatives of the European Union.