This document summarizes innovations in Mongolia and identifies areas for improvement. It notes that while Mongolia has an Innovations Law and allocates some funding for research and development (R&D), the funding is low at 0.27% of GDP and not enough goes to applied research. Other issues include a lack of an Innovations Fund, insufficient cooperation between research institutions and the private sector, and too few researchers. The document recommends that Mongolia establish a Foundation Mongolia modeled after Chile's public-private partnerships, with at least $50 million in initial state funding and private sector management of research consortiums to better support innovations.

1. Innovations in
Mongolia
BCM Summit April 2016

2. Innovations
• Innovations Law has been approved in 2012
• R&D financing of 0.27% of GDP (37.8 billion MNT, including
9.17 billion in budget money
• Researchers per 1 million (531) more than Philippines,
lower than in Kyrgyzstan, Bulgaria
• About 77 government supported R&D/innovation projects
have been implemented since 2009
• But 33% of research funding goes to so called fundamental
research (16% in Israel, 6% in China, 12% in Japan)

3. Issues
• Financing is not enough. Innovations Fund has not been created
so far. Venture funds and Innovations Fund have been deleted
from Innovations Law
• As a result, meager public financing of less than 1 mln dollar
takes 80% of R&D funding
• Organizational matters: innovations viewed as something
belonging to education
• Not enough R&D manpower: in 2014 just 2.7 thousand full time
researchers including
• 630 PhD and ScD

4. Organizational issues
• 71 research institutions including:
• State 49
• University based 15
• Private 7
• Insufficient cooperation with private sector

5. How it should be
• Chile
• Fundación Chile (FCh), Government of Chile and ITT
Corporation
• PPP based: wine research program 55 private companies
• Apples research program: 8 companies and 3
universities joint work
• 24 research consortiums
• GDP’s 2.5% on R&D

6. Chile results:
• In 2008 research funding of 147 million dollars
• Fisheries innovations 10 mln dollars,
• wine 5.5 milllion dollars
• Fruits 5.7 million dollars
• Chile’s exports of fish 5 billion dollars, fruits 4.7
billion dollars, wood and pulp 3.9 billion dollars,
wine 2 billion dollars
• Chile exports fruits to India, wine to France, fish to
UK and copper to Australia

7. So..
• For Mongolia: set up finally Foundation Mongolia
• management to private companies (Rio Tinto or
others)
• State funding of at least 50 million dollars
• Allocations to innovations based on state/private
cooperation (industrial consortiums)