National Innovation System of Mongolia

1
National Innovation System of Mongolia

• Background
• STIS of Mongolia
• Strategies of innovation and expected outcomes
• Conclusion

By Academican B.Enkhtuvshin Vice-President of
MAS, Mobile [phone], Fax[phone]
E-Mail nomciv_at_magicnet.mn
2
Background
Total area 1.565.000 sq km History of state
800 years of Great Mongolian State Population
2.600.000 Capital Ulaanbaatar Exchange rate
US11425 tugriks GDP growth rate 8.9 (2008
est.) GDP per capita US 1649 (2008 est.)
Mongolians are people with rich tradition of
knowledge. When the Great Mongolian Empire was
established in the heart of Asia, Chinggis Khan
stepped up the art of military by initiating a
new form of militaristic culture, brought
together the best of the best minds from
different lands and founded an Empire that would
cover half of the world, recognizing Mongolians
to the world. The Council of Chinggis Khan
(Council of Scholars) was established to assemble
the minds of scholars on State affairs to form a
enlightened state tradition. He also wrote a
law titled Ikh Zasag or Great State and
formed the Ikh Huraldai or a modern Parliament
to discuss important issues. Chinggis Khan
also structured his soldiers and people assigning
in groups of 10, 100, 1000, 10000 for better
coordination and organization. This was a unique
managerial structure.
3
The Mongol empire and technology transfer
Chinggis Khans sons, especially Khubilai, his
grandson established the Mongolian Empire and
derived the very first academy in order to
develop sciences such as, astrology, mathematics,
musicology and literature. Since that time,
Mongolians endured various ups and downs. Yet,
Mongolians kept the tradition of recognizing
knowledge and intellectual power and continued to
foresee intellectual life as a rich part of life.
Institute of Science was established in 1921,
since Mongolia found its independence. Later on,
State University of Mongolia and Academy of
Sciences were established in 1942 and 1961.
These institutions became the hub of research
science. Research science continued to develop
so that various institutions in charge or
different sectors were established. Some of
these institutions include, institutes for the
study of history, natural and social sciences.
Moreover, these institutions prepared a national
intellectual human resource.
4
In the 21st century, Mongolia has founded the
system basics to develop industrial scientific
knowledge, transform acquired knowledge into new
technology, products and services. The
Government of Mongolia is putting great emphasis
in the scientific policy making by highlighting
and storing National innovation system. The
Parliament of Mongolia adopted the Law on Science
and Technology in 2006. In this law,
innovation is described as transformation of
the results and products of researchers and
introducing the end product to industries and
services.
5
On this account, policy S T of Mongolia will be
changed to policy on STI
Greate an Innovation system
Research
Policy
Commercialization of ST
Technology-based industries
Business

• Science is the conversion
• of money into knowledge
• Innovation is the conversion
• of knowledge into money

6
The state policy to store and develop national
innovation system is to form a triple helix
between scientific , business and Government
organizations. In other words, research,
business and policy are being brought together to
form a harmony. The establishment of a triple
helix, from one stand point, makes possible for
the State to become a subject of cooperation.
From another point of view, it makes possible for
scientific organization and universities
mandatory to coordinate with the business sector
and transform knowledge and technology into a
form of business. Additionally, it will be
necessary for the business sector to compete
within, based on science and technology. All
in all, science and technology is not just a
knowledge producer and riches of the society. It
is also one of the basic foundations of
development of a State. The Government of
Mongolia, with an active support of UNESCO has
adopted the Master Plan of Science and Technology
2007-2020. The plan is now used as the tool to
develop Mongolias science and technology sector.

7
Science and Technology Master plan of Mongolia
(2007-2020)
1. The following directions
2. Vision of the ST
In the 21st century Mongolian science and
technology follows the primary principle to be a
nation developing science based on new knowledge
and advanced technology, to practice the national
innovation system as a driving force for social
and economic development for 2020, and to ensure
secure and quality living of the people by
creating and producing advanced knowledge and by
continuously supporting the science and
technology progress and development.
Increasing funding sources to support the
collaboration and partnership between
government-private- research organizations Science
and technology policy needs to aim at
establishing a system with constant monitoring
and evaluation to improve Government investment
efficiency in science and technology
sector Developing alternate implementation
programs with valid and feasible science and
technology policy priorities and objectives To
support the knowledge based innovation activities
of the national development strategies
3. Mission of the ST
4. Values of the ST

• Improve the competitive nature of research works
  based on market economy demand
• Establish a productive system of innovation
• Develop and improve the legal condition for
  research production
• Reform the economy based on innovation
  technology
• Improve and expand science and technology
  international cooperation

The mission of the science and technology of
Mongolia is to practice the effective management
and finance systems based on the social and
market demands, ensure ecological balance by
supporting effective utilization of sectoral
resources by facilitating effective education-
science- industry collaboration, by gaining
comparative advantage through enhanced
competitiveness of small and medium enterprises
and by maintaining environmental and ecological
balance
8
Fundamental Consept
(Five ST Polisy Goals)
Establish a productive system of innovation
Improve the competitive nature of research works
based on market economy demand
Develop and improve the legal condition for
research production
Reform the economy based on innovation
technology
Improve and expand science and technology
international cooperation
9
Strategies of the innovation
Establishing a system that prepares specialists
and provides information and consulting service
that are useful for participants in innovation
activities
To create economic stimuli for the collaboration
of science-industry activities and joint research
work.
Implement a policy supporting all types of
innovation funding
Create and develop the innovation infrastructure

• Create a specialized National information
  database responsible for supporting innovation
  activities in order to protect, popularize and
  commercialize the results of government financed
  innovation research
• Create (independent, or under a research
  institute or university) centers of specialized
  education and consulting services on protection
  of intellectual property, standardization,
  delivering certificates, conducting technological
  evaluations
• Establish in the name of innovation a continued
  multi-level training system, introduce and
  diffuse the innovation culture in science and
  production fields
• Prepare specialized human resources in
  innovation activities, conduct specialized
  training
• Provide colleges and universities that have
  license to conduct training on innovation policy
  and management- with skilled instructors and
  professors, enhance the learning environment
• Advertise by mass media the results and
  achievement of successfully implemented
  innovation activities, regularly, organizes the
  innovation exhibition and trade fairs

• Create a system of continuous funding for
  projects at all phases of innovation
• Create a venture fund for financing
• Establish legal environment for continuous
  support for all phases of innovation activities
  through financial policy
• Expand state support on activities of start up
  innovation firms
• Improve the legal environment on regulating
  financial risks of innovation
• Develop cooperation of parties involved in the
  innovation system
• Create legal framework of owning, protecting,
  transferring and using the results of government-
  financed innovation projects

• Develop the production technological
  infrastructure (technology park, innovation and
  technology center, business incubator, technology
  transfer center)
• Develop the forms of cooperation of parties
  involved in the innovation system
• Adopt the law on legal status of the elements of
  innovation infrastructure that was created with
  the participation of state property
• Within the framework of economic priority areas,
  create and develop innovation infrastructure
  based on large regional industries
• Provide state support aiming to create the
  centers responsible for conducting the
  technological research, patenting, finding
  investors, protecting the legal rights of
  intellectual property.

• Support and stimulate co-funding or research
  development by public and private sectors,
  strengthen the cooperation between public and
  private sectors in the field of science and
  technology
• State support in the implementation of joint
  research by firms and research institutions in
  the framework of science and technology
  priorities
• Coordinate closely the selection of government
  funded research themes with innovation activities
• Organize innovation activity as a principal form
  of activity of research institute and
  universities
• State support in creating at research institutes
  and universities the units for technology
  transfer, incubator center and high tech small
  and medium enterprises

10
Expected outcomes

• Establishment of an effective national
  infrastructure, legal environment and management
  for innovation activities
• Development of market relations in use of
  intellectual resources, innovation assets,
  innovation products and services supporting
  innovation

• Creation of multiple forms of funding and
  government supports for innovation activities
• Creation of advanced technology based innovation
  clusters as the result of enhanced
  science-industry collaboration.

11

• Currently, knowledge based economy total
  (collected) index for Mongolia is 4.23, which is
  35.6 percent higher than it was 12 years ago. In
  comparison to a study carried out by world bank,
  the average index in South East Asia is 3.63,
  Uzbekistan 3.27, Vietnam 3.10, Kazakhstan 4.5 and
  PR of China 4.23.
• An analysis based on the main aggregate result,
  in order to enforce knowledge based economy it is
  important to pay closer attention to innovation
  issues. For example,
• Economic incentive and institutional regime
  rating is 4. 65
• Educated, creative and skilled people rating is
  6.67
• Dynamic information infrastructure rating is 4.67
  
• Mongolias innovation index, in that case rate is
  0.159.

12
(No Transcript)
13
(No Transcript)
14
(No Transcript)
15
a. Activities to be implemented within the
framework of the Chapter on building knowledge

• Reform the coordination and financial mechanism
  of academic and research organizations
• Make results of research profitable that it meets
  demand of the market economy
• Narrow down the priority issues of science and
  technology by prioritizing what is essential for
  own needs
• Support and provide bonuses to scholars and
  researchers by enabling them to make profit from
  research work
• Improve the quality of education, reform the
  structure and support professional and
  engineering professions.
• Improve the selection process of draft research
  proposals

16
b. Activities to be implemented within the
framework of the Chapter on developing the system
of knowledge building

• Provide opportunities for research and
  development organizations to take loans (low
  interest loans)
• Provide specific funds from state to selected
  research work proposals
• Improve the harmonization of research
  organizations and private businesses and
  enterprises
• Monitor to increase foreign investment
• Focus on introducing advanced technology and
  industry ethics, provide tax free work
  opportunities to foreign experts
• Attract foreign research and development
  activities within borders (by freeing tax)
• Establish a foreign investment statistic,
  correlate the methodology of calculating foreign
  investment with the methodology used by the
  International Monetary Fund
• Expedite transfer of technology

17
c. Activities to develop innovation production

• Follow through a policy that prioritizes the
  industries that are most in need to develop
  national economy and support future development.
  Priority sectors that include product and new
  technology development will need to take into
  consideration other sectors, companies and
  industry sectors that will best support national
  development.
• Give responsibility to the Government to
  harmonize the link between the orderer, financer
  and sometimes buyer when supporting priority
  industries. This is especially the case for
  basic and need based research works with high
  risks, improving the opportunities for business
  innovation, acquiring information and knowledge
  about new research and improving the cooperation
  between related subjects.
• Determine priority sectors of innovation
  development from the Government, develop and
  implement innovation development programs,
  provide a coordinated and economically attractive
  environment to fulfill the investment promises to
  implement Government policy on innovation,
  finance specific goal determined activities from
  national budget, and in some cases, involve
  Government to the industrial process of
  competitive products.

18
Enhance the legal conditions for innovation
2008 2009 2015
Gross domestic expenditure on research development as a percentage () of GDP 0.637 0.742 1.523
Government expenditure on research development as a percentage () of GDP 0.566 0.629 0.92
Non-governmental expenditure on RD as a percentage of GDP 0.071 0.112 0.603
Number of total applications for patents to the Department for Intellectual Property (per 10 000 population) 11.0 11.0 15.0
Innovation products as a percentage of total sales in the domestics market 6.0 8.0 30.0
Business Enterprises conducting technological innovation as a percentage () of total organizations in the industry 10.25 10.5 20.0
Organizations conducting innovation activity as a percentage of total organizations in the industry 12.0 15.0 30.0
Total research institutes with internet connections as a percentage of total research institutes 90.0 95.0 100
19

• Thank you
• for your attention