Economic and Social Innovations in Armenia: Challenges and Opportunities

Abstract

Innovation is a key driver of economic growth and social progress. Economic and social innovations are essential for fostering inclusive, creative, and sustainable societies. While economic innovations enhance productivity, competitiveness, and technological advancement, social innovations address critical societal needs by improving quality of life, education, and public well-being. In Armenia, the interplay between these two forms of innovation is crucial for sustainable development. However, social innovations often face underinvestment in free-market economies due to their public good characteristics, necessitating strategic interventions from governments and other stakeholders. Governments and private interest groups can play an important role in institutionalizing social innovation through incentives to social innovators.

This paper examines the role of economic and social innovations in Armenia, analyzing their interconnectedness within regional and global contexts. It explores the challenges of fostering social innovation in a developing economy and highlights the importance of government involvement, international collaborations, foreign direct investment, and diaspora engagement. The study emphasizes the need for increased investment in research, education, and human capital to ensure that social progress keeps pace with economic growth. Ultimately, the paper argues that a balanced approach to economic and social innovation is essential for Armenia’s long-term prosperity.