1. By Academican B.Enkhtuvshin (President of Mongolian Academy of Sciences) Phone: 976-11-262216, Mobile: 976-99119024, Fax: 976-11-2622247 E-Mail: nomciv@magicnet.mn, enkhuvshin@mas.ac.mn

2. Abstract Policy of Science and Technology Role of the Mongolian Academy of Sciences in the development of National Innovation System Conclusion

3. Mongolia has mineral deposits and resources, one of the largest in the world and the majority of the nation’s economic growth comes from the mining industry. Inter alia, 20 per cent of GDP and 87 per cent of export come from the mining sector. However, In the 21 st century a nation’s advancement has rightly raised a question to produce a knowledge, to develop, master, introduce and acclimatize and continue to develop and improve the science management. The innovation undertaking is of high importance for making the effective application of a newly emerging knowledge in the science and technology field. Some time has passed by since the approval and implementation of the National Innovation System for 2008 – 2015. Nonetheless, The National Innovation System /NIS/in Mongolia is now being constituted in this country and let me describe what role and contribution the Mongolian Academy of Sciences and scientists would play.

5. Parliament Government National Council of S&T Ministry of Education Culture and Science Branch Ministries Mongolian Academy of Sciences Foundation for S&T Institutes under Branch Ministries Science, Technology and production corporations Public and Private Universities Private R&D institutes and others Institutes, centers under Mongolian Academy of Sciences Activities line Financing line – Basic Research Institutes and centers of MAS – 22 – Research and Production Corporations – 8 – Research Institutes of Public Universities – 13 – Applied Research Institutes under Ministries – 9 – Private research institutions – 4

6.  Area - 1,565,000 км 2  Population – over 2,834,200 (Dec. 2011)  GDP - 8.2 billion US$ (Dec. 2011)  Foreign Trade - 6108.6 million US$ (2010)  Total manufactured goods - 4726.9 billion MNT (3.59 billion US$) of which 3150.7 billion MNT are of mining and extracting industry (2010)  Per capita GDP according to the World Bank statistics – 2251 US$  Per capita GNP according to the World Bank statistics – 2044 US$  Economic Growth - 17.3 per cent (2011)  Per capita Number of Livestock- 11.8 (2010)  Population growth - 1.1% each year  Human Development Index- 0.763 (2010)  Percentage of science expenditure in GDP - 0.20 (2011)  Innovation Index -0.6 (ranks at 102, innovation efficiency index) The extremely low level of competitiveness the industrial enterprises shows their technological backwardness. The analysis of the sectoral structure shows that the majority of sub-sectors belong to capital and labor consuming (60 per cent) and productions that require low and low-medium skill. 85 per cent of the productions are of low science intensive. The larger portion of exports (97.7 per cent) is no-tech or low-low tech products and 25 per cent of imports are low-tech, 73 per cent – medium-tech and only 2 percent are high-tech products.

7. Types of R&DTotal expenses (thousand MNT)Share in total expenses 200920102011200920102011 S&T Projects892,458,1866,401,6994,855.18.086.25.9 Theoretical basic research works 55,465.61,021,186.3848,633.15.037.35.04 Progressive technology (innovation) research projects 946,600.0 1,131,400.0 1,450,000.0 8.57 8.18.6 Joints projects with foreign organizations and researchers 417,300.0 314,021.6 500,00.0 3.78 2.3 2.9 MAS grant64,00.0 0.580.50.38 Grants for young researchers 20,00.020,000.026,00.00.180.10.15 Grants for young doctors 60,00.0 0.36 Support for ready- made outcomes 296,00,0305,000,0450,00,02,682,22,5 Centralized actions187,368.4407,550.0595,00.01.702.93.5 Expenses for centralized activities of research entities 7,661,890.0 9,795,335.6 10,525,512.0 69.39 70.3 62.6 Priority areas, core technology 1,00,000.0 5.9 Partnership to settle inter-sectoral issues 300,00.0 1.7 Grand total11,041,100.013,924,895.116,814,000.0100.0

8. ,  The master plan of Science and Technology 2007-2020 to develop Mongolia’s science and technology stipulates the establishment of effective national innovation system and its implementation,,  According to the Government agenda 2008-2012 the tendency of Innovation and Technology is to be studied, legal condition for innovation system be formed and to support innovation system in the country,.  The National Innovation Development Program (2008-2015) is to develop an effective national innovation system.

9. Program to develop in Mongolia a National Innovation system for 2008-2018. It adopted several sub-programs within the framework of this Program. They are as follows:  Sub-program to form an innovation system  Sub-program to develop progressive technologies  Sub-program to support R&D in the state –run universities  Sub-program to train and support young researchers In addition, The development of following strategies were projected within the framework of sub-program to develop the National Innovation system: to create economic mechanisms for the collaborations of science- industry joint research works to support and develop important models of innovation financing to form and develop elements of innovation infrastructure to develop a system to provide the participants of the innovation activities with appropriate information, advises and to train specialists, to improve the legal environment for innovation.

11. “The Academic of Worthies”. Great Khan Khublai in particular, established the first academic institution of the nation called “The Academic of Worthies”. “The Institute of Scripts” Mongolian’s first center of modern science came into being in 1921 the established of “The Institute of Scripts”. “The Mongolian Academy of Sciences” This then happened in 1961 it was finally reorganized as “The Mongolian Academy of Sciences” 1042 781 As of 2011, there are 22 its research institutes and centers operating by MAS and 1042 employees working in MAS, of which 781 are researchers

12. In order to implement the sub- programs of the National Innovation System and to improve the coherence among Science, State and Business (Industry), the Government, the Academy of Sciences, universities, industry, business and civil society organizations have started their cooperative arrangements. The National Innovation System consists of the national economy as a whole and as a makeup it incorporates a several sub-systems and elements and subjects that play the role of system mechanism. The sub-systems are: Transfer knowledge Create knowledge Innovation production commercialization of science and technology Support innovation

13. The Mongolian Academy of Sciences together with educational institutions will participate as major player within the framework of the sub-system to create knowledge and as partner with other sub-systems. Therefore, MAS within the NIS development objectives has been working to implement the following guidelines:  to intensify R&D works and to increase the process of creating new knowledge and technology,  to create and develop a unite for profits in order to conduct training, research and experiments, to consolidate the industrial bases and to support the training and research works,  To turn the intellectual properties (patents, licenses and copyrights etc.) into economic effect,  To implement in conjunction with other organizations registration and promotion of discoveries and works, establishing information pool and network and international authentication of intellectual works patents and copyrights,  To establish and develop cooperative arrangements with world’s major, prestigious research organizations, centers and laboratories.  To develop e-science program, which consists of the following two sub programs:  establishment of a science, technology and innovation information network  digitization of the MAS research work outcomes.

14. Based on the recommendations and discussions of the MAS scientists and researchers, The Government of Mongolia adopted in 2010 the list of Priority directions and core technology of Mongolian S&T Areas of Mongolia for 2010-2014. The priority setting of S&T of the coming years are: 1. Human development and quality of life Education, health, living condition and upbringing 2. Environment protection and use of natural resources Environment protection (forest, water, air and land) Mining industry (exploring, exploiting and processing) Energy (production, distribution and utilization) 3. Intensification of agriculture Livestock Farming Production of ecologically clean products 4. Advanced technologies (nano-, bio- and information technology) Leading industrial technologies Nanotechnology Biotechnology Information technology

16. First of all, Mongolian economy has sub economy and it means that it has advantage such as flexibility and possibility to make reform quickly, dynamic and high ability to make maneuver. Therefore, based on these advantage we can overcome our country’s technological backwardness in short time through establishing effective structure of NIS, renovating science and industrial base with enhancing benefits of resource and potential of it. The MAS has a possibility and potential to implement an important duty to the building of NIS in our country. One of directions of activity of the MAS is to participate to the intensification process of economy and technology through the making innovation from new knowledge and technology as a result of research projects and fundamental researches by our scholars in the fields of conservancy, protection of the flora and fauna, breeding and planting new species, recovering and restoring of natural resources, also in branches of mineral resource, energetic, architecture, light and heavy industries, transport and communication and IT. For the building NIS in the condition of Mongolia we must combine an international experience and national specific character. In my opinion, the process of formation of a innovation is based on its sub systems, and main sub-system for NIS is system and its subjects, which build a knowledge. Therefore the MAS is main subject for building and developing new knowledge in the National Innovation System in Mongolia.

17. Thank you for your attention