Building an efficient research system is a strategic objective for the Armenian authorities. Armenia has a number of assets, including a strong science base, a large Armenian diaspora and traditional national values that emphasize education and skills. Nonetheless, there are still a number of hurdles to overcome in building the national innovation system. The biggest among these are the poor linkages between universities, research institutions and the business sector. This is partly a legacy of the country's Soviet past, when the policy focus was on developing linkages across the Soviet economy rather than within Armenia. Research institutes and industry were part of value chains within a large market that disintegrated with the Soviet Union. Two decades on, domestic businesses have yet to become effective sources of demand for innovation.