Transferring Korean Experience in R&D Funding System Development to Mongolia through Korean ODA

Abstract

Technology and innovation are acknowledged to have been the most important contributing factors to impressive development. The Mongolia during the last years has due to its efficient innovation policy focused on increasing R&D expenditures and supporting knowledge society initiatives. Despite the strong cuts in other public sectors during the economic recession, the technology policy was felt to be the major driving force toward better times. Now, Mongolia is facing a situation in which it has replaced its position as a catching-up country looking at other countries as role models, for a position in which it is itself closely examined by other countries. In principle, institutional and organizational structures of innovation systems would are arranged according to innovation policy priorities and other additional, more general policy issues. In fact, countries often already have institutional arrangements that are the result of political discussions, cultural or social manifestations, or ad-hoc decisions made at one point in history. It should be clear that there is clear interaction between policies and structures that impact each other in either direction. Following organizational structures and missions are the instruments that these organizations use to accomplish their missions and, again, in principle should be designed in such a way that they can meet the needs of targeted groups individually as well as collectively. This research presents the main results from the study that took a systems approach by looking at the broad innovation policy developments, examining organizations functioning within the innovation system, and instruments used by these organizations, took a case study approach and started from the needs of specific R&D performers and looked at what kind of public funding is available through which types of instruments to support the innovation activities of these performers in the different countries. This research focused on to define R&D funding system of Mongolia. This closely correlated to the Program for to develop national innovation system in Mongolia, Law on innovation of Mongolia and Master Plan of Science policy strategies and states the means of implementing the objectives, clarifying the financial, legal terms and results in a detailed manner. Also Mongolia need to support strongly an investment in innovation technology, R&D funding system to make a big step into the development of knowledge-based economy in our country. The purpose of this research is to survey institutional structures and processes related to government funding for R&D in a selection of country. This research should identify interesting structures, policy measures, and examples of funding instruments that Mongolia might adapt. This research aimed to elaborate key issues related to the trends towards globalization of R&D funding and their implications for developing countries especially Mongolia. The research questions that this study aim to answer: 1) What is its R&D potential? How can the establishment of R&D funding abroad affect the transfer of technology – one of the main potential benefits from the official development assistance? 2) What types of R&D are the most desirable for development? What benefits and costs are involved and, how can policies in home and host countries influence the allocation of such activities and their economic impact? That wide-eyed sense that anything is possible through R&D —that we can help solve some of the most critical challenges by increasing our knowledge and understanding of the world. On the basis of lesson learn from the comparison, defined policy guidance of R&D funding system of Mongolia, some suggestions to Government of Mongolia which good experiences we can domesticate to our country, what provisions should be adopted for the effective implement ability of acts by Korean ODA. The Korean experience shows that there are many things to consider for building a NIS, R&D funding and technological development, also business supporting factors are also important for the appropriate NIS to be developed. Furthermore, it indicates that R&D funding system building is a long term project and needs systematic approach.