By Academican Batbold Enkhtuvshin (Vice-President of MAS, Director of the IISNC)

Phone: 00976-11-327827, Mobile: 00976-99119024, Fax:00976-11-329624

www.nomadic.mn, E-Mail: nomciv@magicnet.mn

- Briefly history of STI of Mongolia

- STI policy of Mongolian Government

- Funtamental consept of STI- Building an advanced National

Innovation System (NIS)- Refrences

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.

Chinggis Khan’s 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.

Financial Resources for Science of Mongolia (financial year 2007)

Total (in million tugrik) – 10410.0Of which:State Budget – 8218.4 (79.0 %)Other Resources – 2191.6 (21.0 %)

Categories 2007 year

1. Full time Research Staff 1577

Of which by fields of

science:

Natural Science 626

Engineering Science and Technology 207

Agriculture 275

Medicine 164

Social Science and Humanitarian 305

2. Of Total Full time Research Staff:

- Doctor of Science 103

- Doctor of Philosophy (PhD) 358

- Master 568

- Other 548

3. Age of researchers:

- to 30 years old 538 (34.1%)

- to 31-40 years old 336 (21.3%)

- to 41-50 years old 328 (20.8%)

- - > 51 years old 375 (23.8%)

4. Female of Total Full time Research Staff: 786

Outputs of Research Works, Experiments and Inventions (by types)

Categories 2003 year 2007 year

1. Outputs delivered to customers and orderers 1254 767

Of which:

Technology 126 73

Actual products and product models 229 73

Standards 120 148

Other 779 473

2. Published materials 5567 7103

3. Patents 55 51

4. Effective model certificates 57 73

5. Copyrights certificates 63 14

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.

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 Mongolia’s science and technology sector.

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.

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

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

• 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

(2007-2020)

1. The following directions: 2. Vision of the S&T

3. Mission of the S&T4. Values of the S&T

(Five S&T Polisy Goals)

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

Establish a productive system of innovation

Strategy 1. To create economic stimuli for the collaboration of science-industry activities and joint research work.

Strategy 2. Implement a policy supporting all types of innovation funding

• 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

• 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

Strategy 3. Create and develop the innovation infrastructure

Strategy 4. Establishing a system that prepares specialists and provides information and consulting service that are useful for participants in innovation activities

• 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.

• 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

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

• 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.

• 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.

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, 1. Economic incentive and institutional regime rating is 4.

652. Educated, creative and skilled people rating is 6.673. Dynamic information infrastructure rating is 4.67 4. Mongolia’s innovation index, in that case rate is 0.159.

Creation of knowledge

Establish of the foundation

of innovation

Support of thefoundation of

innovation

Implementationof innovation

Valley of destructionOf R&D

Universities, Research centers

Business, Private sectors

National Council for S & T

Croup of Experts of the Science & Education

Croup of Experts of the Technology

MAS MESC FST MAIC& other association

Ministries

Universities ABD AFI

Institutes of basic research

Corporation of research & industry

Research centers

Incubation, technology & business parks of the universities RI

Technology transfer centers, business incubators

Private sector: industrial company, medium & small business

Non governmental, civil organizations

Fund of support of the innovation

Government

Agency of

Technology

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

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

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.

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 R&D 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

Thank you Thank you for your attentionfor your attention