Knowledge economy index, and change analysis

This research examines the changes in Mongolia’s Knowledge Economy Index from 2019 to 2023, as well as the sub-indicators that influence it, at both theoretical and empirical levels. The theoretical foundation of this research is built upon the theories of the knowledge economy, the national innovation system, and institutional economics. These theories explain economic growth and productivity based on the interconnected roles of knowledge, innovation, human capital, research and development, and the institutional environment. The study utilizes data from international and national organizations such as the World Bank, Global Economy.com, and the National Statistics Office of Mongolia. Using trend analysis, comparative analysis, and SPSS-2024 graphical analysis methods, the research calculates changes in the four pillar indices of the knowledge economy: education, innovation, information technology, and the institutional environment. The results show that Mongolia’s Knowledge Economy Index increased from 3.95 to 4.21 between 2019 and 2023. However, insufficient investment in innovation and research and development has limited further improvement of the index. Among the four pillars, the innovation index remains at the lowest level, indicating weaknesses in R&D expenditure, the quality of human capital, and the stability of the institutional environment. The study suggests that to foster the development of the knowledge economy, it is crucial to enhance investment in research and development, cultivate an innovative ecosystem, enhance the quality of human capital, and strengthen institutional capacity.