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Development of innovation cluster in Mongolia for ICT sector /role of High education system/


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Development of innovation cluster in Mongolia for ICT sector
/role of High education system/

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Development of innovation cluster in Mongolia for ICT sector /role of High education system/

  1. 1. Development of innovation cluster in Mongolia for ICT sector /role of High education system/ N.Munkhuu*, B.Tsetsgee*, T.Narantuya† * SICT MUST, Ulaanbaatar, Mongolia † CSMS MUST, Ulaanbaatar, Mongolia * Abstract: This paper examines the role of regional clusters in regional entrepreneurship. We focus on the distinct influences on growth in the number of start-up firms as well as in employment in these new firms in a given region-industry. Mongolian government has approved several policy documents to enhance national capacity building. Within the framework of these policy documents, some efforts have been made at initial level from creating legal environment for science and technology oriented activities. The National Development Policy and Action plan of Government of Mongolia specified implementation of different large scale projects, such as hightech innovation cluster for ICT (Silicon Valley) and other sector, launching of national industry, improving capacities of human resources, which can be implemented together and in cooperation with different organizations. Concept of developing innovation cluster in Mongolia aimed to build a knowledge driven society to enhance living standards of Mongolian people. † It is very important for information and communication sector to intensify its development, to strengthen its position in society and economy and to increase its contribution to the country through harmonizing activities of universities, institutes, research organizations, National Information Technology Park, small and medium sized enterprises and companies, which have an effective cooperation and good introduction of innovation. Therefore according to the initiative of the Information, Communications Technology and Post Authority (ICTPA), the research works to make a model for developing a high technology of information and communications based on a partnership of the state, universities, institutes and private sector, are started. So, we prepared paper in purpose to define the role of higher education institutions for establishing ICT cluster. I. INTRODUCTION Mongolia has determined an objective to introduce an innovation in all the social and economic sectors widely, to promote high-technology industries and to create acknowledge-based economy, and developed several policy documents including “Millennium Development Goals-based Comprehensive National Development Policy in 2008-2021”, “State Policy on high technology industries, in 2010”, “State Policy on information, communication and technology (ICT)” /proposal/, “Master plan to develop science and technology of Mongolia between 2007-2010” and “Program to develop National innovation system in Mongolia between 2008-2015”, “Law about of innovation”, . In these documents it is reflected that … support high technology products and industries, which are made as a result of studies and innovation and to develop high technology industries as a Science and Technology Park and cluster. There are some start-up operations to create a legal environment for science and technology actions and to develop their management and organizations but an issue to involve results of research works in economic cycle, to have a optimal mechanism, to regulate relations between parties – subjects of science, state and business and to strengthen their collaboration, has not solved yet. II. DEVELOPMENT PROSPECTS OF MONGOLIAN INFORMATION AND COMMUNICATIONS SECTOR Mongolian telecommunications and information sector will increase by its percentage of GDP, service revenue and investment scenario and it will be a key factor in economic development.(Table №1) TABLE I. MONGOLIAN INFORMATION AND COMMUNICATIONS SECTOR INDICATORS, BY YEARS Indicator 2010 2011 Percentage of GDP 2,9 2,6 Total revenue from services, 470,9 538,9 billion.tug. Investment for sevices, 89,9 107,7 billion.tug Gross income in state budget, 81,9 96,5 billion.tug. Total service revenue of Information and Communications sector reached 538.9 billion tugrugs, 69.3% of which comprised of mobile communications service, 6.8% - content service, 6.4% - internet service, 4.4%- network service, 4.0%- television broadcasting
  2. 2. service, 3.5%- fixed telephone communications service, 2.4%- cable television service, 2.0%- postal service,1.2% - international call service. By the end 2011, 736 licences were issued for carrying out 29 differents types of 11 categories of telecommunication operations, 464 special licences for radio frequency use, 736 owners certificate in the Mongolian Telecommunications sector. From 2011, digital content service and its regulation has been organized intensively by governing organizations of Mongolian information and communications. Mobile and Fixed communication services. There are 4 major telecom carriers and they are providing mobile services for 95% of total population, in 350 regional areas and towns. The number of mobile service subscribers reached 2.9 million by the end of 2011. This leads to mobile service subscribers density of 103.8 per 100 subscribers which exceeds the world average by 19 units. Third generation technology or 3G technology has been implemented in mobile communications services since 2009. As of the end of 2011, it is providing mobile communications services to 28282 subscribers of Ulaanbaatar city and 23 province centers. Number of subscribers has increased by 84.5 % compared to the last year. The number of fixed telephone communications carriers service subscribers reached 143856 at the end of 2011 and wireless fixed telephone communications carriers service subscribers are 43705. Internet service Internet service has been playing an important role for recent economic and social development, since it began in Mongolia in 1995. The number of internet service subscribers has drastically increased due to the open and free competition in the internet service market, and implementing 3G technology for mobile communications carriers. By the end of 2011, 85 special internet service licenses were issued and the number of internet service subscribers reached 457642 increasing by 1.3 times compared to 2009. Population and housing Census of Mongolia conducted by National statistical Office states that 30.6% of population aged 6 and over use the internet. Companies with special licenses , such as state–owned Information Communications network company, Mobicom corporation, Gemnet company, Railcom business service center and Sky networks company, provided Information and Communications network services in 2011. These internet service carriers access the Trans telecom, Russia connection and China telecom, China Unicom, China gateway. Total length of optic fiber transmission network of these network service carriers is 16838.8 km. TV and radio multi-channel broadcasting services As of the end of 2011, 82 entities and individuals have TV and radio multi-channel service licenses.They use satellites, remote and earth stations for broadcasting services. Government of Mongolia has approved the National Programme to implement full digital terrestrial broadcasting of television programs. The shift to digital technology would be accomplished by July 2014. 47.35% of cable TV subscribers are located mainly in Ulaanbaatar, 14.23% of them are in the remote areas and 38.4% receive the satellite TV broadcast. 52.6% of TV broadcasting subscribers receives digital technology services and 47.4% of them receive analog technology services. 40.55% of TV broadcasting subscribers use cable TV services, 18.56% - mmdS multi-channel service via the multi-terminal system, 38.0%- satellite antennas, 2.49%-internet protocol /IPTV/. In telecommunication sector, high-speed bandwidth capacity of data transmission is on focus for the development of services of next generation technology. For half-year 2012, there are a total of 7800 employees working in the Mongolian Information and Telecommunications sector, over 380 of which are professors and researchers,123 of them are scientists /Sc.D - 8/. It is obvious from this that there is not sufficient competitive human resource in the information and telecommunications sector. For the past 5 years, 7100 students in total graduated from the 44 universities. It is clearly seen from the human resource market research that Information and Communications sector affects the development of the various sectors in different ways. We face the increasing trend to show the value in competitive scientific research to produce hightechnology products in Information and Communication sector. III. HIGH-TECH INNOVATION CLUSTER FOR ICT Cluster development strategies have been implemented in technology transmitting centers, science and technology parks including business and technology incubators, clusters, techno-polis, science and technology towns and regions. Information Communications Technology and Post Authority /ICTPA/ and National Development and Innovation Committee /NDIC/ are planning to implement the cluster “Government-Universities/Science organizations-Manufacturers” (Table 1) For the future development of HTIC in ICT, software and electronics, it is willingly to choose the further research study, based on global ICT market, technology development tendency and domestic resources. TABLE II. FUTURE TENDENCY OF HTIC ADVANCED TECHNOLOGY Software System development, software engineering Cloud calculating, Internet, Mobile communication development technology
  3. 3. Electronics Developing special purpose integral scheme Micro-electro-mechanic system,(mems) and sensor Manufacturing solar generator battery Telecommunication Types of satellite services, band planning The survey team realized there is an urgent need to establish Science and Technology Park in Mongolia in the earliest stage of HTIC development. Structure of Science and Technology Park, which has 4 sections and objectives of each sections, their course of actions, required facilities and internal management of each sections are determined accurately by the survey team. Also, the investment estimation has been done successfully. 1) Report of survey, ordered by Information Communications Technology and Post Authority and National Development and Innovation Committee, provides 3 stages of implementation and development of HTIC. Also, project implementation plan of HTIC has been developed. TABLE III. STAGES OF CLUSTER DEVELOPMENT Preparetion stage: 2012- 2014 GOAL: To ensure HTIC, ICT preparation Plan &infrastructure: To develop a feasibility study, Master plan, Business plan and a drawing of STP infrastructure and construction, To develop a plan to prepare human resource Activities: To intensify cooperation between university and private sector To develop a policy to learn new technologies To improve quality of universities To strengthen capacity of small and medium-sized industries To prepare professionals To determine detailed topics of high technology research To involve attendance of U and SO at the NITP to establish pre-incubators to support private R&D to support innovation 1st stage: 2015- 2017 GOAL: To build a infrastructure and construction of STP Plan &infrastructure: To build an infrastructure and construction of STP , To develop a program to attract specialist Activities: STP construction To set up a temporary commission of cluster and assignment of management structure To prepare cluster human resource To involve attendance of U and So at the NITP Research on raw materials used for industries To strengthen small and medium sized industries To prepare professionals To establish cluster fund and harmonize activities To develop a network of professionals To support operations of pre-incubators To support private R&D To support innovation To attract foreign high technology companies To have entrepreneur arts 2nd stage: 2018-2020 GOAL: To operate activities of STP Activities: To establish cluster fund and harmonize activities To develop a network of professionals To conduct operations of pre-incubators To implement a project at R&D center To conduct trainings To conduct market research and evaluation Patent and license service To support cooperation between participating parties To grow up entrepreneurs To invent a new technology To prepare human resource To develop cluster management To grow up a start-up To attract foreign high technology companies To implement a joint project 3rd stage: 2021GOAL: To smooth activities of HTIC Activities: To establish cluster fund and harmonize activities To develop a network of professionals To establish high technology manufacture Venture company activities To attract foreign high technology companies To implement a joint project The research has been done on the management of activities and cluster responsibilities of the parties concerned in different stages of cluster development. HTIC and high-tech industrial development is the main source of producing value-added products. High education institutes are considered an important source of developing HTIC and they play a big role in HTIC development. We have reviewed the role of higher education and research institutions. IV. ROLE OF HIGHER EDUCATION INSTITUTIONS IN HTIC DEVELOPMENT The documentation of European Federation Commission, “Role of higher education institutions in European knowledge world” discussed within science and higher education institutions says: The most important 4 elements that provide knowledge driven society and knowledge economy are the following: (i) to build knowledge driven from the major scientific research studies, (ii) to offer good education based on scientific knowledge, (iii) to distribute knowledge in society using ICT technology, (iv) to implement, innovation and new technology, to apply newly obtained knowledge in manufacturing the products as soon as possible. It emphases the role of higher education institutions in flexible interconnection of these 4 elements. In developed countries, different projects have been developed and implemented to support higher education institutions. TABLE IV. STAGES OF CLUSTER DEVELOPMENT AND ROLE OF HIGHER EDUCATION AND RESEARCH INSTITUTIONS IN DEVELOPING HTIC Stages of cluster development Role of high education institutes Stage 1 -To To elaborate long-term projects in developing state innovation policy, strategy, develop
  4. 4. infrastructure and ICT architecture, - To create legal environment for science and technology oriented activities and investment -To provide training and consulting services science and technology. to build a knowledge driven society to enhance living standards of Mongolian people To develop spirit of innovation and innovation system in society by disseminating and advertizing science, technology and the innovation knowledge. To start business incubation activities, to write business plan To change the syllabus of bachelor, master and doctoral education in engineering and business (to develop Entrepreneur trendy syllabus of HTIC sector ) To enable the teachers and students to work as a team, to allow students to choose the adequate topics of self-assessment work, course work and diploma thesis that suit their their own needs and interests To have the certain policy to receive minimal training in high-technology To set out an educational foundation for student researchers, To establish and promote fair and open research paper competition To take initiative for technology transmission To expand the cooperation between higher education institutions, science and research organizations and private sectors. To release new technology, to provide required technology transmission, to prepare human resources Stage 2. Technology business incubator, research and development work, innovation, program, technology transmission, development of funding system, cluster system, To develop Entrepreneurs To improve quality of training of higher education institutions To contribute to the development of external and internal integration of National innovation system. To prepare research work and training resources within innovation technology management and national innovation system, scientific knowledge and information distribution To establish technology and business incubators in higher education institutions, to measures promoting entrepreneurship To establish productive scientific and research team, to corporate effectively in science-education-business field, to develop cooperation in innovation, to promote partnership. To do business assessment and to determine growth strategies of business and possibilities of coming on a global market To establish start-up companies by the higher education institutions and scientific and research organizations To apply available resources opportunities in innovation program Stage 3. High-tech manufacturing, start-up companies, venture companies, to attract foreign companies, to establish branch offices and To do the basic and applied research , to implement research results, circulation of economic activities To prepare engineering and innovation human resource To choose Entrepreneurs, managers who will work in research and development sector, to do technology research, to train specialists who will implement innovation projects and negotiate science and technology contracts, and to train managers who will work in venture investment foundations, companies and techno-parks, technology and business incubators, to distribute science and technology knowledge and information CONCLUSION Working outcomes of government, higher education institutions, scientific and research organizations, private sectors and manufacturing is not sufficient enough to develop science and technology, knowledge-based economy and technology-based manufacturing. It is possible to improve it by using innovation cluster and principles of cooperation. It enables us to pull out of technology backwardness and produce value-added products that are able to compete in the global market. Cluster development, its stability and independence starts as big companies with high technology comes into the market of that country. The main factor to attract foreign investment and high technology is high skilled human resource, continuous training of specialists and higher education institutions and science and research organizations that are able to do high-level research. Developing the cluster based on own internal resource is considered as the most cost and time effective version at present. There is also a real opportunity to develop manufacturing technology park relying on natural resource. Research activities of higher education institutions and science and research organizations should be supported by the government policy. It will play an important role in developing companies with modern technology and in establishing human resource as well as in developing knowledge economy based on human resource. REFERENCES [1] [2] [3] [4] [5] [6] Report of Pre-feasibility Study to Establish High-Technology Innovation Cluster of Information and Communications Technology, Mongolia, ICPTA, 2011. Statistical yearbook 2012, Mongolia, 2012. Role of higher education institutions in European knowledge world, UNESKO, 2010 Benner, M. and U. Sandström. 2000. Institutionalizing the Triple Helix: ResearchFunding and Norms in the. Academic System. Research Policy 29: 291–301. Bergek, A., Jacobsson, S., Carlsson, B., Lindmarki, S., Rickne, A., 2005. Analysing the dynamics and functionality of sectoral innovation systems – a manual. In: 10 Year Anniversary DRUID Summer Conference, Copenhagen, June 27–29. Bergek, A., Jacobsson, S., Carlsson, B., Lindmark, S. and Rickne, A. 2008. Analyzing the Functional Dynamics of Technological
  5. 5. Innovation Systems: A scheme of analysis, Research Policy, 37 (3): 407-429.