Bío Bío Region, Chile Higher Education in Regional and City the Bío Bío Region Has Pioneered Regional Development in Chile

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Higher Education in Regional and City Development City and in Regional Education Higher

Higher Education in Regional and City Development Bío Bío Region, Chile Higher Education in Regional and City The Bío Bío Region has pioneered regional development in Chile. It has a high concentration of higher education and research activity. Its universities and other Development higher education institutions have made significant progress in widening access to education. But challenges remain: the Bío Bío Region continues to suffer from brain Bío Bío Region, Chile drain as well as higher than average unemployment and poverty rates. How can the Bío Bío Region promote new business formation and the development of the existing small and medium-sized companies? What incentives are needed to improve higher education institutions’ regional and local orientation? How can higher education institutions move from knowledge generation towards knowledge transfer? This joint OECD and World Bank review explores a range of helpful policy measures and institutional reforms to mobilise higher education for the development of the Bío Bío Region. It is part of the series of the OECD reviews of Higher Education in Regional and City Development. These reviews help mobilise higher education institutions for economic, social and cultural development of cities and regions. They analyse how the higher education system impacts upon regional and local development and bring together universities, other higher education institutions and public and private agencies to identify strategic goals and to work towards them. Bío Chile Bío Region,

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89 2010 06 1 E www.oecd.org/publishing Higher Education in Regional and City Development Higher Education in Regional and City Development

Bío Bío Region, Bío Bío Region, Chile Chile 2010 2010 ORGANISATION FOR ECONOMIC CO-OPERATION ORGANISATION FOR ECONOMIC CO-OPERATION AND DEVELOPMENT AND DEVELOPMENT

The OECD is a unique forum where governments work together to address the economic, The OECD is a unique forum where governments work together to address the economic, social and environmental challenges of globalisation. The OECD is also at the forefront of efforts social and environmental challenges of globalisation. The OECD is also at the forefront of efforts to understand and to help governments respond to new developments and concerns, such as to understand and to help governments respond to new developments and concerns, such as corporate governance, the information economy and the challenges of an ageing population. corporate governance, the information economy and the challenges of an ageing population. The Organisation provides a setting where governments can compare policy experiences, seek The Organisation provides a setting where governments can compare policy experiences, seek answers to common problems, identify good practice and work to co-ordinate domestic and answers to common problems, identify good practice and work to co-ordinate domestic and international policies. international policies. The OECD member countries are: Australia, Austria, Belgium, Canada, Chile, the The OECD member countries are: Australia, Austria, Belgium, Canada, Chile, the Czech Republic, Denmark, Finland, France, Germany, Greece, Hungary, Iceland, Ireland, Israel, Czech Republic, Denmark, Finland, France, Germany, Greece, Hungary, Iceland, Ireland, Israel, Italy, Japan, Korea, Luxembourg, Mexico, the Netherlands, New Zealand, Norway, Poland, Portugal, Italy, Japan, Korea, Luxembourg, Mexico, the Netherlands, New Zealand, Norway, Poland, Portugal, the Slovak Republic, Slovenia, Spain, Sweden, Switzerland, Turkey, the United Kingdom and the Slovak Republic, Slovenia, Spain, Sweden, Switzerland, Turkey, the United Kingdom and the United States. The European Commission takes part in the work of the OECD. the United States. The European Commission takes part in the work of the OECD. OECD Publishing disseminates widely the results of the Organisation’s statistics gathering OECD Publishing disseminates widely the results of the Organisation’s statistics gathering and research on economic, social and environmental issues, as well as the conventions, and research on economic, social and environmental issues, as well as the conventions, guidelines and standards agreed by its members. guidelines and standards agreed by its members.

The World Bank is one of the world’s largest sources of funding and knowledge for developing The World Bank is one of the world’s largest sources of funding and knowledge for developing countries. The World Bank is not a bank in the common sense, but a group of 5 development countries. The World Bank is not a bank in the common sense, but a group of 5 development institutions, owned by 185 member countries, playing a different but collaborative role to help institutions, owned by 185 member countries, playing a different but collaborative role to help developing countries reduce poverty, increase economic growth and improve their quality of life. developing countries reduce poverty, increase economic growth and improve their quality of life. In particular, the International Bank for Reconstruction and Development (IBRD) focuses on middle In particular, the International Bank for Reconstruction and Development (IBRD) focuses on middle income and creditworthy poor countries, while the International Development Association (IDA) income and creditworthy poor countries, while the International Development Association (IDA) focuses on the poorest countries in the world. Together they provide low interest loans, interest-free focuses on the poorest countries in the world. Together they provide low interest loans, interest-free credits and grants in support of education, health, public administration, infrastructure, financial and credits and grants in support of education, health, public administration, infrastructure, financial and private sector development, agriculture, and environmental and natural resource management. Since private sector development, agriculture, and environmental and natural resource management. Since its establishment IDA has provided credits and grants totaling USD 161 billion. In fiscal year 2008, its establishment IDA has provided credits and grants totaling USD 161 billion. In fiscal year 2008, IBRD provided loans equivalent to USD 13.4 billion and IDA credits equivalent to USD 11.2 billion. IBRD provided loans equivalent to USD 13.4 billion and IDA credits equivalent to USD 11.2 billion.

This work is published on the responsibility of the Secretary-General of the OECD. The opinions This work is published on the responsibility of the Secretary-General of the OECD. The opinions expressed and arguments employed herein do not necessarily reflect the official views of the expressed and arguments employed herein do not necessarily reflect the official views of the Organisation, the Executive Directors of the International Bank for Reconstruction and Development/ Organisation, the Executive Directors of the International Bank for Reconstruction and Development/ The World Bank, or of the governments they represent. The World Bank, or of the governments they represent.

ISBN 978-92-64-08893-1 (PDF) ISBN 978-92-64-08893-1 (PDF)

Series: Higher Education in Regional and City Development Series: Higher Education in Regional and City Development

ISSN 2218-3140 (online) ISSN 2218-3140 (online)

Photo credits: Photo credits: Cover image design © Francisco Esquer Mares. Cover image design © Francisco Esquer Mares. Cover photo © José Linez Gonzáles. Cover photo © José Linez Gonzáles.

Corrigenda to OECD publications may be found on line at: www.oecd.org/publishing/corrigenda. Corrigenda to OECD publications may be found on line at: www.oecd.org/publishing/corrigenda. © OECD and the International Bank Reconstruction and Development/The World Bank, 2010 © OECD and the International Bank Reconstruction and Development/The World Bank, 2010

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Foreword Foreword

Universities and other higher education institutions can play a key role Universities and other higher education institutions can play a key role in human capital development and innovation systems in their cities and in human capital development and innovation systems in their cities and regions. Reviews of Higher Education in Regional and City Development regions. Reviews of Higher Education in Regional and City Development are the OECD’s vehicle to mobilise higher education for economic, social are the OECD’s vehicle to mobilise higher education for economic, social and cultural development of cities and regions. The reviews analyse how the and cultural development of cities and regions. The reviews analyse how the higher education system impacts local and regional development and help higher education system impacts local and regional development and help how this impact can be improved. In addition to human capital and skills how this impact can be improved. In addition to human capital and skills development, technology transfer and business innovation, the reviews also development, technology transfer and business innovation, the reviews also considers higher education’s contribution to social, cultural and considers higher education’s contribution to social, cultural and environmental development and regional capacity building. The review environmental development and regional capacity building. The review process facilitates partnership building in regions by drawing together process facilitates partnership building in regions by drawing together higher education institutions and public and private agencies to identify higher education institutions and public and private agencies to identify strategic goals and work together towards them. To know more about the strategic goals and work together towards them. To know more about the OECD review process and requirements, visit Higher Education and OECD review process and requirements, visit Higher Education and Regions’ website at www.oecd.org/edu/imhe/regionaldevelopment. Regions’ website at www.oecd.org/edu/imhe/regionaldevelopment. These reviews are part of a wider multi-annum work of higher education These reviews are part of a wider multi-annum work of higher education in cities and regions coordinated by the OECD Programme on Institutional in cities and regions coordinated by the OECD Programme on Institutional Management of Higher Education (IMHE). In 2004-07, the OECD/IMHE Management of Higher Education (IMHE). In 2004-07, the OECD/IMHE conducted an extensive study with fourteen regional reviews across 12 conducted an extensive study with fourteen regional reviews across 12 countries. This resulted in the OECD flagship publication Higher Education countries. This resulted in the OECD flagship publication Higher Education and Regions: Globally Competitive, Locally Engaged (OECD, 2007) with and Regions: Globally Competitive, Locally Engaged (OECD, 2007) with recommendations to benefit both higher education institutions and national recommendations to benefit both higher education institutions and national and regional governments. and regional governments. In 2008, the OECD/IMHE launched a second series of OECD Reviews In 2008, the OECD/IMHE launched a second series of OECD Reviews of Higher Education in Regional and City Development to address the of Higher Education in Regional and City Development to address the demand by national and regional governments for more responsive and demand by national and regional governments for more responsive and proactive higher education institutions. As a result, 14 regions in proactive higher education institutions. As a result, 14 regions in 11 countries have undergone the OECD review process in 2008-10. The 11 countries have undergone the OECD review process in 2008-10. The reviews are conducted in collaboration with international organisations and reviews are conducted in collaboration with international organisations and associations and other OECD programmes and directorates. This work also associations and other OECD programmes and directorates. This work also supports the OECD Innovation Strategy and OECD Green Growth Strategy. supports the OECD Innovation Strategy and OECD Green Growth Strategy.

This OECD/World Bank review of the Bío Bío Region in Chile has This OECD/World Bank review of the Bío Bío Region in Chile has pioneering in three ways: it has been the first of its kind to be conducted in pioneering in three ways: it has been the first of its kind to be conducted in Chile; the first to be conducted in collaboration with the World Bank; and Chile; the first to be conducted in collaboration with the World Bank; and was the inaugural region reviewed of the second round of OECD Reviews of was the inaugural region reviewed of the second round of OECD Reviews of Higher Education in Regional and City Development. Higher Education in Regional and City Development. This OECD/World Bank review calls for closer collaboration between This OECD/World Bank review calls for closer collaboration between higher education institutions and regional and local government to help higher education institutions and regional and local government to help secure sustainable development. As the people of the Bío Bío Region secure sustainable development. As the people of the Bío Bío Region rebuild their society and their economy after the devastating earthquake of rebuild their society and their economy after the devastating earthquake of February 2010, it is more than ever essential that these institutions and February 2010, it is more than ever essential that these institutions and organisms work together to bring recovery and progress. organisms work together to bring recovery and progress.

Acknowledgements Acknowledgements

Numerous national and regional stakeholders and representatives of Numerous national and regional stakeholders and representatives of higher education institutions provided valuable insights during the review higher education institutions provided valuable insights during the review visit and in the form of comments. This OECD report is based on data visit and in the form of comments. This OECD report is based on data published up to and including 2009. The OECD and the World Bank would published up to and including 2009. The OECD and the World Bank would like to thank in particular the lead coordinators and other active local like to thank in particular the lead coordinators and other active local counterparts for this review: Martin Zilic, Andrés Viveros, Sergio Lavanchy, counterparts for this review: Martin Zilic, Andrés Viveros, Sergio Lavanchy, Héctor Gaete, Juan Cancino, Javier Vera, Aldo Ballerini, Claudio Lapostol, Héctor Gaete, Juan Cancino, Javier Vera, Aldo Ballerini, Claudio Lapostol, Marcos Delucchi, Felix Alderstein, Daniela Moraga, Pelayo Covarrubias Marcos Delucchi, Felix Alderstein, Daniela Moraga, Pelayo Covarrubias and the rest of the regional steering committee (see Annex 2). Additional and the rest of the regional steering committee (see Annex 2). Additional thanks goes to Eliana Chamizo, Ricardo Reich, Mónica Poblete and Juan thanks goes to Eliana Chamizo, Ricardo Reich, Mónica Poblete and Juan Sandoval. Sandoval. This publication draws on interviews carried out during a week-long This publication draws on interviews carried out during a week-long review visit held on 16-22 August 2009 findings of the Bío Bío Region’s review visit held on 16-22 August 2009 findings of the Bío Bío Region’s Self-evaluation Report and using additional information provided to the Self-evaluation Report and using additional information provided to the review team. The OECD/World Bank Review Team had a full and intensive review team. The OECD/World Bank Review Team had a full and intensive programme and were received openly by a wide range of stakeholders. The programme and were received openly by a wide range of stakeholders. The team had the benefit of an extensive and reflective Self Evaluation Report team had the benefit of an extensive and reflective Self Evaluation Report prepared by a research team lead by Jorge Dresdner (see Annex 3) which prepared by a research team lead by Jorge Dresdner (see Annex 3) which went beyond description to postulating a number of hypotheses about went beyond description to postulating a number of hypotheses about strengths and weaknesses which the team were able to test. The team were strengths and weaknesses which the team were able to test. The team were also able to rely on a range of other reports, including the also able to rely on a range of other reports, including the OECD/World Bank Review of Tertiary Education in Chile (2009) and the OECD/World Bank Review of Tertiary Education in Chile (2009) and the OECD Territorial Review (2009) – and tested their conclusions and OECD Territorial Review (2009) – and tested their conclusions and recommendations within the higher education sector in the Bío Bío Region. recommendations within the higher education sector in the Bío Bío Region. This publication was co-ordinated by Jaana Puukka (OECD/IMHE), This publication was co-ordinated by Jaana Puukka (OECD/IMHE), with support from Ernesto Flores, a Mexican national seconded from Sonora with support from Ernesto Flores, a Mexican national seconded from Sonora Institute of Technology (ITSON) to the OECD/IMHE. Peer reviewers from Institute of Technology (ITSON) to the OECD/IMHE. Peer reviewers from the World Bank, Chile, France and United States participated in the review the World Bank, Chile, France and United States participated in the review process: Michael Crawford (World Bank), Dewayne Mathews (Lumina process: Michael Crawford (World Bank), Dewayne Mathews (Lumina Foundation, US), Philip Wade (consultant on regional policy and former Foundation, US), Philip Wade (consultant on regional policy and former OECD staff), Jorge Yutronic (national expert, Chile). Details about the OECD staff), Jorge Yutronic (national expert, Chile). Details about the Review Team are at Annex 1 of this report. Rachel Linden supervised the Review Team are at Annex 1 of this report. Rachel Linden supervised the publication process and Fionnuala Canning provided invaluable assistance publication process and Fionnuala Canning provided invaluable assistance in the editing phase. in the editing phase.

HIGHER EDUCATION IN REGIONAL AND CITY DEVELOPMENT: THE BÍO BÍO REGION, CHILE – © OECD 2010 HIGHER EDUCATION IN REGIONAL AND CITY DEVELOPMENT: THE BÍO BÍO REGION, CHILE – © OECD 2010

TABLE OF CONTENTS – 7 TABLE OF CONTENTS – 7

Table of contents Table of contents

Acronyms and abbreviations ...... 11 Acronyms and abbreviations ...... 11

Assessment and recommendations ...... 17 Assessment and recommendations ...... 17

Chapter 1: The Bío Bío Region and its higher education institutions ...... 35 Chapter 1: The Bío Bío Region and its higher education institutions ...... 35 1.1 Bío Bío Region and administrative organisation ...... 36 1.1 Bío Bío Region and administrative organisation ...... 36 1.2 Demography and society ...... 38 1.2 Demography and society ...... 38 1.3 The regional economy ...... 39 1.3 The regional economy ...... 39 1.4 Higher education in Chile ...... 41 1.4 Higher education in Chile ...... 41 1.5 Higher education in the Bío Bío Region ...... 45 1.5 Higher education in the Bío Bío Region ...... 45 1.6 Regional development perspectives ...... 48 1.6 Regional development perspectives ...... 48 1.7 The role of higher education institutions in regional development ...... 49 1.7 The role of higher education institutions in regional development ...... 49

Chapter 2: Contribution of HE to human capital development ...... 57 Chapter 2: Contribution of HE to human capital development ...... 57 2.1 Regional economic issues ...... 58 2.1 Regional economic issues ...... 58 2.2 Regional demographics and human capital development ...... 59 2.2 Regional demographics and human capital development ...... 59 2.3 Higher education participation and expansion of higher education sector 60 2.3 Higher education participation and expansion of higher education sector 60 2.4 Expanding opportunity for all ...... 61 2.4 Expanding opportunity for all ...... 61 2.5 Increasing participation by adults...... 63 2.5 Increasing participation by adults...... 63 2.6 Improving retention and completion in higher education ...... 64 2.6 Improving retention and completion in higher education ...... 64 2.7 Alignment of higher education to regional labour markets ...... 69 2.7 Alignment of higher education to regional labour markets ...... 69 2.8 Enhancing employability ...... 70 2.8 Enhancing employability ...... 70 2.9 Building entrepreneurship skills ...... 73 2.9 Building entrepreneurship skills ...... 73 2.10 Human capital development and the HE system ...... 77 2.10 Human capital development and the HE system ...... 77 Recommendations ...... 79 Recommendations ...... 79

Chapter 3: Contribution of research to regional innovation ...... 85 Chapter 3: Contribution of research to regional innovation ...... 85 3.1 The strengths of the innovation system in the Bío Bío Region ...... 86 3.1 The strengths of the innovation system in the Bío Bío Region ...... 86 3.2 Specific strengths and contributions from higher education institutions .. 89 3.2 Specific strengths and contributions from higher education institutions .. 89

3.3 The innovation system in the Bío Bío Region – areas for improvement ... 91 3.3 The innovation system in the Bío Bío Region – areas for improvement ... 91 Conclusions and recommendations ...... 102 Conclusions and recommendations ...... 102

Chapter 4: Social, cultural and environmental development ...... 105 Chapter 4: Social, cultural and environmental development ...... 105 4.1 Rural development policies and higher education programmes ...... 108 4.1 Rural development policies and higher education programmes ...... 108 4.2 HEIs widening access and providing services to rural communities ...... 110 4.2 HEIs widening access and providing services to rural communities ...... 110 4.3 Community development in rural areas ...... 112 4.3 Community development in rural areas ...... 112 4.4 Rural development: local economic and social development ...... 116 4.4 Rural development: local economic and social development ...... 116 4.5 Underutilised potential in environmental and cultural development ...... 118 4.5 Underutilised potential in environmental and cultural development ...... 118 Conclusions and recommendations ...... 122 Conclusions and recommendations ...... 122

Chapter 5: Capacity building for regional co-operation ...... 127 Chapter 5: Capacity building for regional co-operation ...... 127 5.1 The decentralisation process – building capacity in the regions ...... 128 5.1 The decentralisation process – building capacity in the regions ...... 128 5.2 Regional development strategy in the Bío Bío Region ...... 129 5.2 Regional development strategy in the Bío Bío Region ...... 129 5.3 Partnerships and capacity building in the Bío Bío Region ...... 132 5.3 Partnerships and capacity building in the Bío Bío Region ...... 132 5.4 Institutional capacity in higher education institutions ...... 136 5.4 Institutional capacity in higher education institutions ...... 136 Conclusions and recommendations ...... 141 Conclusions and recommendations ...... 141 Annex 1: OECD review team ...... 147 Annex 1: OECD review team ...... 147

Annex 2: Regional steering committee ...... 151 Annex 2: Regional steering committee ...... 151

Annex 3: Regional self-evaluation report’s research team ...... 153 Annex 3: Regional self-evaluation report’s research team ...... 153

Annex 4: Programme of the review visit ...... 155 Annex 4: Programme of the review visit ...... 155

Tables Tables Table 1.1. The governance structure of the Bío Bío Region ...... 37 Table 1.1. The governance structure of the Bío Bío Region ...... 37 Table 2.1. HEIs’ business incubators in the Bío Bío Region ...... 74 Table 2.1. HEIs’ business incubators in the Bío Bío Region ...... 74 Table 3.1. Patents registered by Chilean universities (1995-2007) ...... 90 Table 3.1. Patents registered by Chilean universities (1995-2007) ...... 90 Table 3.2. ARIDP strategic sectors and their implications ...... 100 Table 3.2. ARIDP strategic sectors and their implications ...... 100 Table 5.1. Funding for regional development agencies, selected examples .. 133 Table 5.1. Funding for regional development agencies, selected examples .. 133 Table 5.2. Bío Bío Region’s competitiveness framework and HEIs’ role .... 135 Table 5.2. Bío Bío Region’s competitiveness framework and HEIs’ role .... 135

Figures Figures

Figure 1.1. OECD population with at least tertiary education (2007) ...... 43 Figure 1.1. OECD population with at least tertiary education (2007) ...... 43

Figure 1.2. Enrolment in HEIs in the Bío Bío Region ...... 46 Figure 1.2. Enrolment in HEIs in the Bío Bío Region ...... 46 Figure 2.1. Share of enrolment by income quintile and type of institution ..... 61 Figure 2.1. Share of enrolment by income quintile and type of institution ..... 61 Figure 2.2. Share of new enrolment, by income quintile ...... 62 Figure 2.2. Share of new enrolment, by income quintile ...... 62 Figure 4.1. HDI in the municipalities of the Bío Bío Region ...... 107 Figure 4.1. HDI in the municipalities of the Bío Bío Region ...... 107

Boxes Boxes

Box 2.1. The San Sebastián University and vulnerable schools ...... 66 Box 2.1. The San Sebastián University and vulnerable schools ...... 66 Box 2.2. El Paso, TX: widening access to higher education ...... 67 Box 2.2. El Paso, TX: widening access to higher education ...... 67 Box 2.3. Embedding employability in learning process ...... 72 Box 2.3. Embedding employability in learning process ...... 72 Box 2.4. Enhancing entrepreneurship in Mexico ...... 75 Box 2.4. Enhancing entrepreneurship in Mexico ...... 75 Box 2.5. Coordinated entrepreneurship efforts in Brandenburg, Germany ..... 76 Box 2.5. Coordinated entrepreneurship efforts in Brandenburg, Germany ..... 76 Box 3.1. Cluster development plan in fisheries: Humboldt County, CA ...... 87 Box 3.1. Cluster development plan in fisheries: Humboldt County, CA ...... 87 Box 3.2. Perceived weaknesses of government promotion programmes ...... 95 Box 3.2. Perceived weaknesses of government promotion programmes ...... 95 Box 4.1. LEADER: bottom-up local development in the EU ...... 113 Box 4.1. LEADER: bottom-up local development in the EU ...... 113 Box 4.2. UCSC building sustainable communities ...... 114 Box 4.2. UCSC building sustainable communities ...... 114 Box 4.3. Universities supporting rural economic diversification ...... 117 Box 4.3. Universities supporting rural economic diversification ...... 117 Box 4.4. Universities supporting environmental sustainability ...... 119 Box 4.4. Universities supporting environmental sustainability ...... 119 Box 4.5. New Zealand and the Māori ...... 121 Box 4.5. New Zealand and the Māori ...... 121 Box 5.1. UBB mobilising knowledge for regional development strategy ..... 131 Box 5.1. UBB mobilising knowledge for regional development strategy ..... 131 Box 5.2. MECESUP2 performance agreement with UBB ...... 138 Box 5.2. MECESUP2 performance agreement with UBB ...... 138 Box 5.3. Entrepreneurial private university: Universidad del Desarrollo ..... 139 Box 5.3. Entrepreneurial private university: Universidad del Desarrollo ..... 139 Box 5.4. HE management at the Jyväskylä University of Applied Sciences 140 Box 5.4. HE management at the Jyväskylä University of Applied Sciences 140 Box 5.5. Purdue University: supporting Indiana’s development...... 141 Box 5.5. Purdue University: supporting Indiana’s development...... 141

HIGHER EDUCATION IN REGIONAL AND CITY DEVELOPMENT: THE BÍO BÍO REGION, CHILE – © OECD 2010 HIGHER EDUCATION IN REGIONAL AND CITY DEVELOPMENT: THE BÍO BÍO REGION, CHILE – © OECD 2010

ACRONYMS AND ABBREVIATIONS – 11 ACRONYMS AND ABBREVIATIONS – 11

Acronyms and abbreviations Acronyms and abbreviations

Aporte Fiscal Directo Aporte Fiscal Directo AFD AFD Direct Public Contribution Direct Public Contribution Aporte Fiscal Indirecto Aporte Fiscal Indirecto AFI AFI Indirect Public Contribution Indirect Public Contribution Asociación de Municipios para el Desarrollo Económico Local Asociación de Municipios para el Desarrollo Económico Local AMDEL AMDEL Association of Municipalities for Local Economic Development Association of Municipalities for Local Economic Development Agencia Regional de Innovación y Desarrollo Productivo Agencia Regional de Innovación y Desarrollo Productivo ARIDP ARIDP Regional Agency for Innovation and Productive Development Regional Agency for Innovation and Productive Development Agenzia di Sviluppo Nord Milano Agenzia di Sviluppo Nord Milano ASNM ASNM Northern Milan Development Agency Northern Milan Development Agency Brandenburgisches Institut für Existenzgründung und Brandenburgisches Institut für Existenzgründung und BIEM Mittelstandsförderung BIEM Mittelstandsförderung The Brandenburg Institute for Entrepreneurship and SMEs The Brandenburg Institute for Entrepreneurship and SMEs Brandenburgische Technische Universität Cottbus Brandenburgische Technische Universität Cottbus BTU BTU Brandenburg University of Technology, Cottbus Brandenburg University of Technology, Cottbus Crédito con Aval del Estado Crédito con Aval del Estado CAE CAE State-Guaranteed Student Loan Programme State-Guaranteed Student Loan Programme Encuesta de Caracterización Socioeconómica Encuesta de Caracterización Socioeconómica CASEN CASEN National Survey of Socio-Economic Characterisation National Survey of Socio-Economic Characterisation Convenios de Desempeño Convenios de Desempeño CD CD Performance Agreements Performance Agreements Centro de Estudios de Ingeniería Ambiental Centro de Estudios de Ingeniería Ambiental CEIA CEIA Centre for Environmental Engineering Studies Centre for Environmental Engineering Studies Centro de Estudios Urbano Regionales Centro de Estudios Urbano Regionales CEUR CEUR Centre for Urban and Regional Studies Centre for Urban and Regional Studies Centro de Formación Técnica Centro de Formación Técnica CFT CFT Technical Training Centre Technical Training Centre Centro de Innovación y Desarrollo Empresarial Centro de Innovación y Desarrollo Empresarial CIDE CIDE Centre for Innovation and Entrepreneurial Development Centre for Innovation and Entrepreneurial Development

HIGHER EDUCATION IN REGIONAL AND CITY DEVELOPMENT: THE BÍO BÍO REGION, CHILE – © OECD 2010 HIGHER EDUCATION IN REGIONAL AND CITY DEVELOPMENT: THE BÍO BÍO REGION, CHILE – © OECD 2010 12 – ACRONYMS AND ABBREVIATIONS 12 – ACRONYMS AND ABBREVIATIONS

Corporación Industrial para el Desarrollo Regional del Bío Bío Corporación Industrial para el Desarrollo Regional del Bío Bío CIDERE CIDERE Industrial Corporation for the Regional Development of Bío Bío Industrial Corporation for the Regional Development of Bío Bío Centro de Investigación Marítimo Portuario Centro de Investigación Marítimo Portuario CIMP CIMP Centre for Maritime and Harbour Research Centre for Maritime and Harbour Research CLP Chilean peso CLP Chilean peso Consejo Nacional de Innovación para la Competitividad Consejo Nacional de Innovación para la Competitividad CNIC CNIC National Council of Innovation for Competitiveness National Council of Innovation for Competitiveness Comisión Nacional de Investigación Científica y Tecnológica Comisión Nacional de Investigación Científica y Tecnológica CONICYT CONICYT National Commission for Scientific and Technological Research National Commission for Scientific and Technological Research Centro de Investigación Oceanográfica en el Pacífico Sur Centro de Investigación Oceanográfica en el Pacífico Sur COPAS Oriental COPAS Oriental Centre for South-eastern Pacific Oceanographic Research Centre for South-eastern Pacific Oceanographic Research Corporación para la Regionalización del Bío Bío Corporación para la Regionalización del Bío Bío CORBIOBIO CORBIOBIO Corporation for the Regionalisation of Bío Bío Corporation for the Regionalisation of Bío Bío Consejo Regional Consejo Regional CORE CORE Regional Council Regional Council Consejo Regional de Ciencia y Tecnología Consejo Regional de Ciencia y Tecnología CORECYT CORECYT Regional Council for Science and Technology Regional Council for Science and Technology Corporación de Fomento de la Producción Corporación de Fomento de la Producción CORFO CORFO Production Development Corporation Production Development Corporation Centro Regional de Estudios Ambientales Centro Regional de Estudios Ambientales CREA CREA Regional Centre for Environmental Studies Regional Centre for Environmental Studies Centro Regional de Estudios Ambientales, Marítimos, Acuícolas Centro Regional de Estudios Ambientales, Marítimos, Acuícolas y de Transferencia Tecnológica y de Transferencia Tecnológica CREAMAR CREAMAR Regional Centre for Environmental, Maritime and Aquaculture Regional Centre for Environmental, Maritime and Aquaculture Research and Technology Research and Technology Consejo de Rectores de las Universidades Chilenas Consejo de Rectores de las Universidades Chilenas CRUCH CRUCH Council of Rectors of Chilean Universities Council of Rectors of Chilean Universities Consejo Nacional de Educación Consejo Nacional de Educación CSE CSE National Council of Education National Council of Education División de Planificación y Desarrollo Regional División de Planificación y Desarrollo Regional DIRPLAN DIRPLAN Planning and Regional Development Division Planning and Regional Development Division Departamento de Propiedad Industrial, Ministerio de Economía Departamento de Propiedad Industrial, Ministerio de Economía DPI DPI Industrial Property Department, Ministry of Economy Industrial Property Department, Ministry of Economy

HIGHER EDUCATION IN REGIONAL AND CITY DEVELOPMENT: THE BÍO BÍO REGION, CHILE –© OECD 2010 HIGHER EDUCATION IN REGIONAL AND CITY DEVELOPMENT: THE BÍO BÍO REGION, CHILE –© OECD 2010 ACRONYMS AND ABBREVIATIONS – 13 ACRONYMS AND ABBREVIATIONS – 13

Departamento Universitario Obrero y Campesino de la Departamento Universitario Obrero y Campesino de la Universidad Católica de Chile Universidad Católica de Chile DUOC DUOC University Department for Peasants and Workers of the University Department for Peasants and Workers of the Universidad Católica de Chile Universidad Católica de Chile Estrategia Regional de Desarrollo Estrategia Regional de Desarrollo ERD ERD Regional Development Strategy Regional Development Strategy

EU European Union EU European Union

Centro de Ciencias Ambientales Europa Latinoamérica, Chile Centro de Ciencias Ambientales Europa Latinoamérica, Chile EULA EULA Europe-Latin America Centre for Environmental Sciences, Chile Europe-Latin America Centre for Environmental Sciences, Chile EUR Euro EUR Euro Fondo de Desarrollo Institucional Fondo de Desarrollo Institucional FDI FDI Institutional Development Fund Institutional Development Fund Fondo de Innovación Académica Fondo de Innovación Académica FIAC FIAC Academic Innovation Fund Academic Innovation Fund Fondo de Innovación para la Competitividad Fondo de Innovación para la Competitividad FIC FIC Innovation Fund for Competitiveness Innovation Fund for Competitiveness Fondo Nacional de Desarrollo Regional Fondo Nacional de Desarrollo Regional FNDR FNDR National Fund for Regional Development National Fund for Regional Development FOB Free on Board FOB Free on Board Fondo Nacional de Desarrollo Cultural y las Artes Fondo Nacional de Desarrollo Cultural y las Artes FONDART FONDART National Fund for the Development of Culture and Arts National Fund for the Development of Culture and Arts Observatorio Mundial del Emprendedurismo Observatorio Mundial del Emprendedurismo GEM GEM Global Entrepreneurship Monitor Global Entrepreneurship Monitor Gobierno Regional Gobierno Regional GORE GORE Regional Government Regional Government Deutsche Gesellschaft für Technische Zusammenarbeit Deutsche Gesellschaft für Technische Zusammenarbeit GTZ GTZ German Organisation for Technical Cooperation German Organisation for Technical Cooperation HDI Human Development Index HDI Human Development Index HE Higher Education HE Higher Education HEI Higher Education Institution HEI Higher Education Institution ICT Information and Communication Technologies ICT Information and Communication Technologies Instituto para el Desarrollo de Emprendedores del Tecnológico Instituto para el Desarrollo de Emprendedores del Tecnológico IDE de Monterrey IDE de Monterrey The Monterrey Tech’s Institute for Entrepreneurial Development The Monterrey Tech’s Institute for Entrepreneurial Development

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Instituto Latinoamericano y del Caribe de Planificación Instituto Latinoamericano y del Caribe de Planificación Económica y Social / CEPAL Económica y Social / CEPAL ILPES/ECLAC ILPES/ECLAC Latin American and Caribbean Institute for Economic and Social Latin American and Caribbean Institute for Economic and Social Planning / ECLAC Planning / ECLAC OECD Programme on Institutional Management in Higher OECD Programme on Institutional Management in Higher IMHE IMHE Education Education Instituto Nacional de Capacitación Profesional Instituto Nacional de Capacitación Profesional INACAP INACAP National Institute of Professional Training National Institute of Professional Training Instituto de Desarrollo Agropecuario Instituto de Desarrollo Agropecuario INDAP INDAP National Institute for Agricultural Development National Institute for Agricultural Development Instituto Nacional de Estadísticas de Chile Instituto Nacional de Estadísticas de Chile INE INE Chile’s National Institute of Statistics Chile’s National Institute of Statistics Instituto Profesional Instituto Profesional IP IP Professional Institute Professional Institute ISI Institute for Scientific Information ISI Institute for Scientific Information Instituto Tecnológico y de Estudios Superiores de Monterrey Instituto Tecnológico y de Estudios Superiores de Monterrey (Tec de Monterrey) (Tec de Monterrey) ITESM ITESM Monterrey Institute of Technology and Advanced Studies Monterrey Institute of Technology and Advanced Studies (Monterrey Tech) (Monterrey Tech) LAG Local Action Group LAG Local Action Group Liaisons entre Acteurs du Développement Economique Rural Liaisons entre Acteurs du Développement Economique Rural LEADER LEADER Liaison among Actors in Rural Economic Development Liaison among Actors in Rural Economic Development Laboratorio de Experimentación, Control y Certificación de Laboratorio de Experimentación, Control y Certificación de LECYCA Calidad de los Alimentos LECYCA Calidad de los Alimentos Food Quality Control and Certification Laboratory Food Quality Control and Certification Laboratory MBA Master of Business Administration MBA Master of Business Administration Programa de Mejoramiento de la Calidad y la Equidad de la Programa de Mejoramiento de la Calidad y la Equidad de la Educación Superior Educación Superior MECESUP MECESUP Programme for the Quality and Equity Improvement of Higher Programme for the Quality and Equity Improvement of Higher Education Education Ministerio de Planificación y Cooperación, Gobierno de Chile Ministerio de Planificación y Cooperación, Gobierno de Chile MIDEPLAN MIDEPLAN Ministry of Planning and Cooperation, Government of Chile Ministry of Planning and Cooperation, Government of Chile NGO Non-Governmental Organisation NGO Non-Governmental Organisation Investerings- En Ontwikkelingsmaatschappij voor Noord- Investerings- En Ontwikkelingsmaatschappij voor Noord- NOM Nederland NOM Nederland Northern Netherlands’ Investment and Development Agency Northern Netherlands’ Investment and Development Agency NZD New Zealand Dollars NZD New Zealand Dollars

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OECD Organisation of Economic Cooperation and Development OECD Organisation of Economic Cooperation and Development Plan de Mejoramiento de la Competitividad Plan de Mejoramiento de la Competitividad PMC PMC Programme for Improvement of Competitiveness Programme for Improvement of Competitiveness Prueba de Selección Universitaria Prueba de Selección Universitaria PSU PSU University Selection Test University Selection Test R&D Research and Development R&D Research and Development SER Self-Evaluation Report SER Self-Evaluation Report Servicio de Cooperación Técnica, Ministerio de Economía Servicio de Cooperación Técnica, Ministerio de Economía SERCOTEC SERCOTEC Technical Cooperation Service, Ministry of Economy Technical Cooperation Service, Ministry of Economy Secretarías Regionales Ministeriales Secretarías Regionales Ministeriales SEREMIS SEREMIS Ministerial Regional Secretariats Ministerial Regional Secretariats Secretaría Regional de Planificación Secretaría Regional de Planificación SERPLAC SERPLAC Regional Planning Secretariat Regional Planning Secretariat Sistema Nacional de Información de la Educación Superior Sistema Nacional de Información de la Educación Superior SIES SIES National Higher Education Information System National Higher Education Information System SME Small and medium enterprise SME Small and medium enterprise Sociedad para la Promoción y Reconversión Industrial Sociedad para la Promoción y Reconversión Industrial SPRI SPRI Society for Industrial Promotion and Reconversion Society for Industrial Promotion and Reconversion Subsecretaría de Desarrollo Regional y Administrativo Subsecretaría de Desarrollo Regional y Administrativo SUBDERE SUBDERE Under-Secretary for Regional Development Under-Secretary for Regional Development Universidad del Bío Bío Universidad del Bío Bío UBB UBB University of Bío Bío University of Bío Bío Pontificia Universidad Católica de Chile Pontificia Universidad Católica de Chile UC UC Pontifical Catholic University of Chile Pontifical Catholic University of Chile

UCSC Universidad Católica de la Santísima Concepción UCSC Universidad Católica de la Santísima Concepción

UDD Universidad del Desarrollo UDD Universidad del Desarrollo Unidad de Desarrollo Tecnológico Unidad de Desarrollo Tecnológico UDT UDT Office for Technology Development Office for Technology Development UNDP United Nations Development Programme UNDP United Nations Development Programme US United States US United States

USD United States Dollar USD United States Dollar Universidad de Concepción Universidad de Concepción UDEC UDEC University of Concepción University of Concepción

HIGHER EDUCATION IN REGIONAL AND CITY DEVELOPMENT: THE BÍO BÍO REGION, CHILE – © OECD 2010 HIGHER EDUCATION IN REGIONAL AND CITY DEVELOPMENT: THE BÍO BÍO REGION, CHILE – © OECD 2010

ASSESSMENT AND RECOMMENDATIONS – 17 ASSESSMENT AND RECOMMENDATIONS – 17

Assessment and recommendations Assessment and recommendations

Towards a region that reaps rewards from investment in higher Towards a region that reaps rewards from investment in higher education education

Chile is Latin America’s most successful economy and enjoys great Chile is Latin America’s most successful economy and enjoys great natural wealth. Over recent years the country has made progress not only in natural wealth. Over recent years the country has made progress not only in economic development, but also in educational reforms. Despite this economic development, but also in educational reforms. Despite this progress, higher education attainment rates and the R&D intensity remain progress, higher education attainment rates and the R&D intensity remain low. The current OECD/World Bank Review of Higher Education in low. The current OECD/World Bank Review of Higher Education in Regional and City Development in the Bío Bío Region confirms that Chile Regional and City Development in the Bío Bío Region confirms that Chile is ready for the second generation of higher education reforms to improve is ready for the second generation of higher education reforms to improve quality of education, to address challenges in equity and to improve quality of education, to address challenges in equity and to improve employability outcomes and knowledge transfer. For reasons of both equity employability outcomes and knowledge transfer. For reasons of both equity and competitiveness, education and the improvement of human capital and competitiveness, education and the improvement of human capital should continue to be a priority for the Chilean government also in the should continue to be a priority for the Chilean government also in the coming years. coming years. Chile has made greater decentralisation a priority in order to unleash the Chile has made greater decentralisation a priority in order to unleash the potential of its regions. Regional planning has been transferred to regional potential of its regions. Regional planning has been transferred to regional governments and promising reforms are underway. But more work is governments and promising reforms are underway. But more work is needed. In spite of recent measures, Chile remains centralised with more needed. In spite of recent measures, Chile remains centralised with more pronounced regional disparities than in most OECD countries. pronounced regional disparities than in most OECD countries. Administrative and financial limitations remain, and the regional agenda Administrative and financial limitations remain, and the regional agenda continues to be determined by national guidelines. There is a concentration continues to be determined by national guidelines. There is a concentration around Santiago in the Metropolitan region in terms of decision making, around Santiago in the Metropolitan region in terms of decision making, business activity, work force, higher education and R&D. In addition, the business activity, work force, higher education and R&D. In addition, the concentration of Chile’s innovation system slows down the development of concentration of Chile’s innovation system slows down the development of regional innovation systems. regional innovation systems.

A closer look at the Bío Bío Region A closer look at the Bío Bío Region

Despite slow progress, the decentralisation process is building capacity Despite slow progress, the decentralisation process is building capacity in the fifteen regions of Chile. It has also created a window of opportunity in in the fifteen regions of Chile. It has also created a window of opportunity in

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the Bío Bío Region which has traditionally been a national pioneer in the Bío Bío Region which has traditionally been a national pioneer in regional development and regional innovation policy. As part of its long regional development and regional innovation policy. As part of its long term objectives, the Bío Bío Region aims to strengthen the decentralisation term objectives, the Bío Bío Region aims to strengthen the decentralisation process, improve the quality of its human resources, increase the rates of process, improve the quality of its human resources, increase the rates of technological innovation and strengthen the productive sector, technological innovation and strengthen the productive sector, competitiveness and rates of value added in the regional economy. The competitiveness and rates of value added in the regional economy. The Agenda for Innovation and Regional Competitiveness identifies higher Agenda for Innovation and Regional Competitiveness identifies higher education and science and technology as one of the strategic areas for 2008- education and science and technology as one of the strategic areas for 2008- 12 that will receive funding on the basis of Programmes for Improvement of 12 that will receive funding on the basis of Programmes for Improvement of Competitiveness (PMC, in its Spanish acronym, “Bío Bío Educates and Competitiveness (PMC, in its Spanish acronym, “Bío Bío Educates and Innovates”). The regional government is thus not only fully aware of the Innovates”). The regional government is thus not only fully aware of the benefits of the decentralisation process, but also of the potential role that the benefits of the decentralisation process, but also of the potential role that the higher education institutions can play in achieving these goals. higher education institutions can play in achieving these goals. With 1.9 million inhabitants, the Bío Bío Region is the second most With 1.9 million inhabitants, the Bío Bío Region is the second most populated region in Chile. It is also the second most important region in populated region in Chile. It is also the second most important region in terms of its contribution to the Gross Domestic Product. The regional terms of its contribution to the Gross Domestic Product. The regional economy relies on manufacturing, services and low value added products economy relies on manufacturing, services and low value added products from primary industries, agriculture, fishery and forestry. Furthermore, the from primary industries, agriculture, fishery and forestry. Furthermore, the region is characterised by a “dual economy”: on one side, there are big, region is characterised by a “dual economy”: on one side, there are big, productive firms in forestry and in the steel industry, and, on the other, a productive firms in forestry and in the steel industry, and, on the other, a wide array of small and medium-sized enterprises which represent 80% of wide array of small and medium-sized enterprises which represent 80% of employment. The few leading edge companies tend to be located in the employment. The few leading edge companies tend to be located in the central city of Concepción or controlled from outside of the country. There central city of Concepción or controlled from outside of the country. There are few spill-overs from big firms in terms of job creation and supply chains. are few spill-overs from big firms in terms of job creation and supply chains. The rate of firm creation is one of the lowest in the country. The rate of The rate of firm creation is one of the lowest in the country. The rate of unemployment is higher than the national average and there is also evidence unemployment is higher than the national average and there is also evidence of brain drain. of brain drain. In this context, the region faces a triple challenge: In this context, the region faces a triple challenge: • How to promote new business formation? • How to promote new business formation? • How to support the development of the existing SME base? • How to support the development of the existing SME base? • How to address the hard core problems of poverty and inequity by • How to address the hard core problems of poverty and inequity by creating opportunities for growth. creating opportunities for growth. To face these challenges, the Bío Bío Region and its higher education To face these challenges, the Bío Bío Region and its higher education institutions need to be involved in joint efforts to develop a long term institutions need to be involved in joint efforts to develop a long term strategy for the region. A reform is necessary in higher education institutions strategy for the region. A reform is necessary in higher education institutions to facilitate more professional institutional management and student-centred to facilitate more professional institutional management and student-centred learning experience. In order to improve regional development outcomes, learning experience. In order to improve regional development outcomes, evidence-based decision making at all levels and institutions needs to be evidence-based decision making at all levels and institutions needs to be adopted. In addition, job creation should be seen as the primary goal of adopted. In addition, job creation should be seen as the primary goal of innovation and human capital development. innovation and human capital development.

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Human capital development in the Bío Bío Region Human capital development in the Bío Bío Region

The Bío Bío Region has made impressive The Bío Bío Region has made impressive progress in widening access to education. The progress in widening access to education. The increase in higher education participation has increase in higher education participation has included students from all sectors of the included students from all sectors of the society… society…

The Bío Bío Region is a “human capital factory”, second only to the The Bío Bío Region is a “human capital factory”, second only to the Metropolitan region, in terms of number of higher education institutions, Metropolitan region, in terms of number of higher education institutions, student enrolment, teachers and researchers. In 2007, the region student enrolment, teachers and researchers. In 2007, the region concentrated 11.9% of the supply of undergraduate programmes, 12.8% of concentrated 11.9% of the supply of undergraduate programmes, 12.8% of the national higher education enrolment and 12.7% of all the headquarters of the national higher education enrolment and 12.7% of all the headquarters of higher education institutions in Chile. Recent decades have witnessed rapid higher education institutions in Chile. Recent decades have witnessed rapid progress in education. For example, the adult literacy rate in the region progress in education. For example, the adult literacy rate in the region almost doubled in the last decade, and now stands at well over 90%. almost doubled in the last decade, and now stands at well over 90%. Likewise, levels of educational attainment have increased significantly, with Likewise, levels of educational attainment have increased significantly, with 21% of the population having completed some form of higher education – 21% of the population having completed some form of higher education – an increase from 13% in the last decade. Between 1983 and 2007, the an increase from 13% in the last decade. Between 1983 and 2007, the number of enrolled higher education students in the Bío Bío Region number of enrolled higher education students in the Bío Bío Region expanded more than threefold, growing from 21 000 to 94 000. Finally, the expanded more than threefold, growing from 21 000 to 94 000. Finally, the higher education participation rate in the region among the 18-24 year-old higher education participation rate in the region among the 18-24 year-old age increased to 39.9%, constituting a significant increase from less than age increased to 39.9%, constituting a significant increase from less than 14% in 1990. The participation rate is three percentage points higher than 14% in 1990. The participation rate is three percentage points higher than the national average. the national average. Considerable progress has been made in widening access to higher Considerable progress has been made in widening access to higher education, particularly in terms of students from lower socio-economic education, particularly in terms of students from lower socio-economic background. The increase in higher education attainment is correlated with background. The increase in higher education attainment is correlated with reduced poverty rates in the Bío Bío Region. The rate of poverty has fallen reduced poverty rates in the Bío Bío Region. The rate of poverty has fallen by over 50% in recent decades, with the most significant reduction occurring by over 50% in recent decades, with the most significant reduction occurring at the lowest income levels. However, 21% of the population is classified as at the lowest income levels. However, 21% of the population is classified as poor or indigent, compared to a national average of 14%. Furthermore, low- poor or indigent, compared to a national average of 14%. Furthermore, low- income potential students continue to be less likely to enrol in higher income potential students continue to be less likely to enrol in higher education than those from the upper-income strata of the society. education than those from the upper-income strata of the society.

…but challenges remain in order to continue …but challenges remain in order to continue and consolidate the gains accomplished while and consolidate the gains accomplished while better aligning the education system to the better aligning the education system to the region’s needs... region’s needs...

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The rate of unemployment in the Bío Bío Region is consistently higher The rate of unemployment in the Bío Bío Region is consistently higher than the national average: 8.7% in 2008 as compared to 7.7% nationally. At than the national average: 8.7% in 2008 as compared to 7.7% nationally. At the beginning of 2009, the region’s average unemployment had grown to the beginning of 2009, the region’s average unemployment had grown to 11%, reaching 18% in some rural areas. Unemployment is structural in 11%, reaching 18% in some rural areas. Unemployment is structural in nature and linked to shifts in the regional economy. Wage levels are lower in nature and linked to shifts in the regional economy. Wage levels are lower in the region and higher education graduates earn less than their peers the region and higher education graduates earn less than their peers elsewhere in Chile. This may suggest that the region is over-supplied, on a elsewhere in Chile. This may suggest that the region is over-supplied, on a relative basis, with higher education graduates. It may equally suggest a relative basis, with higher education graduates. It may equally suggest a misalignment between what higher education offers and what regional misalignment between what higher education offers and what regional labour market needs. These factors may have contributed to Bío Bío labour market needs. These factors may have contributed to Bío Bío Region’s high “brain-drain” rate: the region today is a net exporter of Region’s high “brain-drain” rate: the region today is a net exporter of undergraduates to other parts of the country, mainly to the Metropolitan undergraduates to other parts of the country, mainly to the Metropolitan Region. In 1997-2002, net migration was of 19 000, or about 1% of the Region. In 1997-2002, net migration was of 19 000, or about 1% of the regional population. regional population. The rapid increase in higher education enrolment has contributed to high The rapid increase in higher education enrolment has contributed to high dropout rates. Throughout Chile, 58% of all students drop out before dropout rates. Throughout Chile, 58% of all students drop out before completing a degree, in comparison with the OECD average of 29.6%. The completing a degree, in comparison with the OECD average of 29.6%. The reasons for the high drop-out rates are manifold, ranging from insufficient reasons for the high drop-out rates are manifold, ranging from insufficient preparation of students in primary and secondary education to inadequacies preparation of students in primary and secondary education to inadequacies in the university admission systems, overly long degree programmes, in the university admission systems, overly long degree programmes, inflexible curricula and outdated classroom practices. Detailed student data inflexible curricula and outdated classroom practices. Detailed student data about dropout and academic progress is lacking both at the regional and about dropout and academic progress is lacking both at the regional and institutional level. institutional level.

…and reforms are necessary to reduce the …and reforms are necessary to reduce the dropout rates… dropout rates…

Most higher education institutions also have remedial courses to reduce Most higher education institutions also have remedial courses to reduce the dropout rates. Some institutions, for example Universidad Católica de la the dropout rates. Some institutions, for example Universidad Católica de la Santísima Concepción, have adopted comprehensive institution-wide Santísima Concepción, have adopted comprehensive institution-wide responses addressing the social, financial and learning difficulties of their responses addressing the social, financial and learning difficulties of their students. Recent experience shows that reducing dropout rates is a challenge students. Recent experience shows that reducing dropout rates is a challenge that can be overcome. For example, the University of Bío Bío is collecting that can be overcome. For example, the University of Bío Bío is collecting and analysing data to address the dropout problem as a part of the and analysing data to address the dropout problem as a part of the Programme for the Quality and Equity Improvement of Higher Education Programme for the Quality and Equity Improvement of Higher Education (MECESUP). The university has reached measurable results in reducing the (MECESUP). The university has reached measurable results in reducing the dropout rate from 48% in 2008 to 37% in 2009. Also, policies that tie dropout rate from 48% in 2008 to 37% in 2009. Also, policies that tie student graduation rates to institutional financial obligations under the State- student graduation rates to institutional financial obligations under the State- Guaranteed Student Loan Program (CAE in its Spanish acronym) should Guaranteed Student Loan Program (CAE in its Spanish acronym) should help decrease dropout. help decrease dropout. Educational reforms at the secondary level are necessary to ensure better Educational reforms at the secondary level are necessary to ensure better preparation of all students. In the first instance, it is up to the school preparation of all students. In the first instance, it is up to the school

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authorities to work towards improving the quality of education in Chile. authorities to work towards improving the quality of education in Chile. Higher education institutions can, however, reach out to local schools to Higher education institutions can, however, reach out to local schools to improve the preparation for higher education. The higher education improve the preparation for higher education. The higher education institutions in the Bío Bío Region, supported by a special funding from the institutions in the Bío Bío Region, supported by a special funding from the Ministry of Education, are running an impressive number of school outreach Ministry of Education, are running an impressive number of school outreach projects to raise aspirations and academic performance of students at local projects to raise aspirations and academic performance of students at local schools and to improve the quality of teaching and school management. schools and to improve the quality of teaching and school management.

…to improve graduation rates and labour …to improve graduation rates and labour market relevance of education and to boost market relevance of education and to boost entrepreneurship… entrepreneurship…

Several larger higher education institutions in the Bío Bío Region are Several larger higher education institutions in the Bío Bío Region are primarily focused on national labour markets and career-focused education primarily focused on national labour markets and career-focused education provision. There is a need to move away from supply-driven orientation to provision. There is a need to move away from supply-driven orientation to more demand-led education provision, to strengthen the development of more demand-led education provision, to strengthen the development of competencies of the students and to build stronger links between higher competencies of the students and to build stronger links between higher education institutions and labour market. This could be achieved through a education institutions and labour market. This could be achieved through a wide range of measures, including credit bearing work-based learning for wide range of measures, including credit bearing work-based learning for students, expansion of problem-based learning methods in collaboration students, expansion of problem-based learning methods in collaboration with the local industry and other employers as well as participation of with the local industry and other employers as well as participation of employers in the curriculum and course design. In addition, the use of local employers in the curriculum and course design. In addition, the use of local private sector employees as instructors and supporting the movement of private sector employees as instructors and supporting the movement of university researchers/teaching staff on a temporary basis to the private university researchers/teaching staff on a temporary basis to the private sector would be useful ways of improving the labour market relevance. sector would be useful ways of improving the labour market relevance. Furthermore, improving active language skills of all students and faculty are Furthermore, improving active language skills of all students and faculty are necessary if the region wishes to position itself in the global market. Positive necessary if the region wishes to position itself in the global market. Positive development in improving the labour market relevance is taking place in a development in improving the labour market relevance is taking place in a handful of institutions, including the leading private universities, for handful of institutions, including the leading private universities, for example the Universidad del Desarrollo and INACAP which have example the Universidad del Desarrollo and INACAP which have developed its educational approach based on “learning by doing”. At the developed its educational approach based on “learning by doing”. At the national level, higher education reform is facilitated by the Ministry of national level, higher education reform is facilitated by the Ministry of Education’s MECESUP programme. It is, however not accessible to all Education’s MECESUP programme. It is, however not accessible to all accredited institutions; technical tertiary institutions, for example, have only accredited institutions; technical tertiary institutions, for example, have only limited access to MECESUP funding, which focuses mostly on universities. limited access to MECESUP funding, which focuses mostly on universities. As a consequence, initiatives to improve labour market relevance of higher As a consequence, initiatives to improve labour market relevance of higher education remain in most instances discipline-based rather than education remain in most instances discipline-based rather than institutionally driven. institutionally driven. The Bío Bío Region has a low rate of business creation in comparison to The Bío Bío Region has a low rate of business creation in comparison to other regions of Chile. Finding ways of increasing entrepreneurship could be other regions of Chile. Finding ways of increasing entrepreneurship could be an effective strategy for job creation. Higher education institutions in the an effective strategy for job creation. Higher education institutions in the region have taken steps to boost university spinoffs and graduate region have taken steps to boost university spinoffs and graduate

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entrepreneurship, mainly through incubators, but there is limited entrepreneurship, mainly through incubators, but there is limited collaboration between the institutions. There is, moreover, limited offer of collaboration between the institutions. There is, moreover, limited offer of entrepreneurship training to students. Provision of entrepreneurship entrepreneurship training to students. Provision of entrepreneurship programmes should be scaled up, focusing on growth-oriented programmes should be scaled up, focusing on growth-oriented entrepreneurship while not neglecting social and cultural entrepreneurship, entrepreneurship while not neglecting social and cultural entrepreneurship, and by using interactive and experiential teaching methods. and by using interactive and experiential teaching methods. Due to the rapidly changing skill requirements, skills upgrading, re- Due to the rapidly changing skill requirements, skills upgrading, re- skilling and other forms of lifelong learning are becoming increasingly skilling and other forms of lifelong learning are becoming increasingly important. To date, the higher education institutions in the Bío Bío Region important. To date, the higher education institutions in the Bío Bío Region remain more oriented to meet the needs of traditional students than those of remain more oriented to meet the needs of traditional students than those of adult learners. While the institutions are aware of the needs of adults and adult learners. While the institutions are aware of the needs of adults and have some programmes in place for them, not enough robust data is have some programmes in place for them, not enough robust data is available to understand the needs of this population or the efficacy of higher available to understand the needs of this population or the efficacy of higher education in meeting them. Flexible ways of provision should be scaled up education in meeting them. Flexible ways of provision should be scaled up for the benefit of non-traditional learners, who often combine work and for the benefit of non-traditional learners, who often combine work and study. study.

…and to address the fragmented governance …and to address the fragmented governance architecture and the segmentation of the architecture and the segmentation of the education system. education system.

One of the main issues impeding human capital development in the One of the main issues impeding human capital development in the Bío Bío Region is the fragmented governance architecture and the absence Bío Bío Region is the fragmented governance architecture and the absence of a region-wide coordinating structure and mechanisms to articulate a long of a region-wide coordinating structure and mechanisms to articulate a long term vision and implement an integrated development strategy for all term vision and implement an integrated development strategy for all educational institutions. educational institutions. Transparent pathways for students through the education system are Transparent pathways for students through the education system are required. This involves the development of stronger credit recognition required. This involves the development of stronger credit recognition schemes, course and programme articulation agreements, clear and schemes, course and programme articulation agreements, clear and enforceable policies related to credit transfer and increased support for joint enforceable policies related to credit transfer and increased support for joint and collaborative programmes. and collaborative programmes. The segmentation of university and non-university sectors acts as an The segmentation of university and non-university sectors acts as an impediment for student mobility and human capital development. Immediate impediment for student mobility and human capital development. Immediate measures are needed to raise the attractiveness and prestige of technical measures are needed to raise the attractiveness and prestige of technical tertiary education. A potential step in this direction could be the tertiary education. A potential step in this direction could be the establishment of a national qualifications framework to facilitate progression establishment of a national qualifications framework to facilitate progression from one degree type to another, to allow credit for previous academic and from one degree type to another, to allow credit for previous academic and job-related experiences and competencies, and to ease transitions between job-related experiences and competencies, and to ease transitions between areas of study. The transition toward a national qualifications framework areas of study. The transition toward a national qualifications framework would benefit from including a review of all tertiary curricula, to make them would benefit from including a review of all tertiary curricula, to make them

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more flexible and address excessive study hours and theoretical content in more flexible and address excessive study hours and theoretical content in degree programmes. degree programmes.

The following measures would promote human capital development The following measures would promote human capital development in the Bío Bío Region: in the Bío Bío Region: • Regional government, higher education institutions, other • Regional government, higher education institutions, other educational institutions and key stakeholders of the economy and educational institutions and key stakeholders of the economy and society should work together to establish a Regional Human Capital society should work together to establish a Regional Human Capital Development System to define region-wide goals, policies and Development System to define region-wide goals, policies and priorities extending from primary to tertiary education. As part of priorities extending from primary to tertiary education. As part of this system, higher education institutions and regional government this system, higher education institutions and regional government should consider establishing a higher education coordinating body should consider establishing a higher education coordinating body that would define goals, policies and priorities within the region. A that would define goals, policies and priorities within the region. A major function of this body would be to evaluate how well the major function of this body would be to evaluate how well the higher education system is delivering the amount and quality of higher education system is delivering the amount and quality of skills needed by the labour markets. skills needed by the labour markets. • Higher education institutions and regional government and • Higher education institutions and regional government and interested parties should work together to improve the data on interested parties should work together to improve the data on labour market needs and trends. Higher education institutions should labour market needs and trends. Higher education institutions should systematically monitor student progress as well as students’ labour systematically monitor student progress as well as students’ labour market outcomes and graduate destinations (out-migration). The market outcomes and graduate destinations (out-migration). The most effective region-wide graduate labour market systems are most effective region-wide graduate labour market systems are based on the collection of comprehensive labour market intelligence based on the collection of comprehensive labour market intelligence and the on-line publication of the data in a single place to improve and the on-line publication of the data in a single place to improve students’ ability to make rational choices about their studies and to students’ ability to make rational choices about their studies and to help graduates and employers come together and move toward help graduates and employers come together and move toward employment. Also a key is to use the data strategically to identify employment. Also a key is to use the data strategically to identify regional priorities and at an institutional level, to respond to the data regional priorities and at an institutional level, to respond to the data in terms of course provision and the supply of employer specific in terms of course provision and the supply of employer specific skills. skills. • Higher education institutions and regional government should take • Higher education institutions and regional government should take steps to significantly expand higher education opportunities for steps to significantly expand higher education opportunities for working age adults. These steps should create clear and transparent working age adults. These steps should create clear and transparent pathways to advanced education for adults, including the ability to pathways to advanced education for adults, including the ability to attend multiple institutions, obtain short-term education and training attend multiple institutions, obtain short-term education and training that can later be applied to degrees, and re-skilling and up-skilling that can later be applied to degrees, and re-skilling and up-skilling courses and programmes designed around the needs of adults who courses and programmes designed around the needs of adults who often combine work and study. This involves the development of a often combine work and study. This involves the development of a qualifications framework: strong credit recognition schemes, course qualifications framework: strong credit recognition schemes, course and programme articulation agreements, clear and enforceable and programme articulation agreements, clear and enforceable

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policies related to credit transfer and increased support for joint and policies related to credit transfer and increased support for joint and collaborative programmes. collaborative programmes. • Higher education institutions and regional government should • Higher education institutions and regional government should continue to expand efforts to increase the enrolment and success of continue to expand efforts to increase the enrolment and success of students who are the first in their families to pursue higher education students who are the first in their families to pursue higher education degrees. This includes building upon existing models of academic degrees. This includes building upon existing models of academic and social support services for students, increasing institutional and and social support services for students, increasing institutional and state aid to students as well as moving away from teacher-centred state aid to students as well as moving away from teacher-centred learning methods. learning methods. • Higher education institutions should continue to strengthen their • Higher education institutions should continue to strengthen their efforts to improve completion rates. The efforts of several higher efforts to improve completion rates. The efforts of several higher education institutions in the region have shown genuine promise, education institutions in the region have shown genuine promise, and these efforts should be supported, expanded, and disseminated and these efforts should be supported, expanded, and disseminated as models to other institutions. as models to other institutions. • Higher education institutions should focus on the employability and • Higher education institutions should focus on the employability and entrepreneurial skills of graduates; providing them with the skills entrepreneurial skills of graduates; providing them with the skills and competences needed in a globalised knowledge economy. Work and competences needed in a globalised knowledge economy. Work and problem-based learning methods and programmes to build and problem-based learning methods and programmes to build entrepreneurship skills would improve retention after graduation in entrepreneurship skills would improve retention after graduation in the region. Similarly, efforts in language learning could help the the region. Similarly, efforts in language learning could help the region in its internationalisation efforts. All degree programmes region in its internationalisation efforts. All degree programmes should include compulsory English. should include compulsory English. • Employers and regional government should acknowledge the • Employers and regional government should acknowledge the increasing relevance and importance of education in technical increasing relevance and importance of education in technical employment fields. There is clear evidence that needs and employment fields. There is clear evidence that needs and opportunities are growing in these fields, but that these trends are opportunities are growing in these fields, but that these trends are under-recognised in the region and within higher education. under-recognised in the region and within higher education.

Regional innovation in the Bío Bío Region Regional innovation in the Bío Bío Region

The Bío Bio Region has been a pioneer in The Bío Bio Region has been a pioneer in incorporating the concern for innovation incorporating the concern for innovation capacity and performance into its overall capacity and performance into its overall regional economic development efforts... regional economic development efforts...

The Bío Bío Region is a clear leader in Chile in making innovation a The Bío Bío Region is a clear leader in Chile in making innovation a pillar of its economic development and future prosperity. It has excelled in pillar of its economic development and future prosperity. It has excelled in numerous areas of planning, co-ordination, analysis, goals setting, numerous areas of planning, co-ordination, analysis, goals setting, prioritisation and consensus building. It has a coherent plan with well prioritisation and consensus building. It has a coherent plan with well

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articulated long term goals. It has used systematic analysis to convert long- articulated long term goals. It has used systematic analysis to convert long- term strategy into short- and medium-term targets in specific sectors. It has term strategy into short- and medium-term targets in specific sectors. It has pioneered new agencies and organisational arrangements, some of which pioneered new agencies and organisational arrangements, some of which have become national models. These include the regional development have become national models. These include the regional development agency (Regional Agency for Innovation and Productive Development), agency (Regional Agency for Innovation and Productive Development), Innova Bío Bío, a co-operative venture between the Production Innova Bío Bío, a co-operative venture between the Production Development Corporation (CORFO) and the regional government which Development Corporation (CORFO) and the regional government which was used as a model for the creation of the national agency Innova Chile. In was used as a model for the creation of the national agency Innova Chile. In addition, Chile’s first regional council for science and technology addition, Chile’s first regional council for science and technology CORECYT, was established in the Bío Bío Region. Recently, the region has CORECYT, was established in the Bío Bío Region. Recently, the region has also taken steps to mobilise the leading higher education institutions for its also taken steps to mobilise the leading higher education institutions for its development through “Bío Bío Educates and Innovates” programme. development through “Bío Bío Educates and Innovates” programme. Significant investments have been made to enhance universities’ role in Significant investments have been made to enhance universities’ role in innovation. innovation.

… its higher education sector is above national … its higher education sector is above national standards in terms of innovative capacity… standards in terms of innovative capacity…

Today, the Bío Bío Region is the second region in Chile in terms of Today, the Bío Bío Region is the second region in Chile in terms of R&D on the basis of a number of indicators such as funding, staffing and R&D on the basis of a number of indicators such as funding, staffing and publications or patents. The research scene is heavily dominated by the publications or patents. The research scene is heavily dominated by the University of Concepción, while other institutions are strengthening their University of Concepción, while other institutions are strengthening their capacity from a low base. In terms of knowledge generation, the Bío Bío capacity from a low base. In terms of knowledge generation, the Bío Bío Region produced in 2008 a greater proportion of published papers than Region produced in 2008 a greater proportion of published papers than would be predicted by its share of national population (13.1% versus 12%). would be predicted by its share of national population (13.1% versus 12%). The rate of production in the region has grown significantly faster than the The rate of production in the region has grown significantly faster than the national average over the past two decades. With respect to patents, the national average over the past two decades. With respect to patents, the Bío Bío Region over performs, thanks to the University of Concepción, the Bío Bío Region over performs, thanks to the University of Concepción, the country’s top higher education institution for patent production: In 1995- country’s top higher education institution for patent production: In 1995- 2007 the region accounted for 29% of all patents from universities across the 2007 the region accounted for 29% of all patents from universities across the country. There are 24 active research centres based at higher education country. There are 24 active research centres based at higher education institutions, involving five different institutions. The region, mainly through institutions, involving five different institutions. The region, mainly through the University of Concepción, is also represented in six of 19 recognised the University of Concepción, is also represented in six of 19 recognised innovation consortia. Specific centres are devoted to regional priorities, such innovation consortia. Specific centres are devoted to regional priorities, such as fisheries and forestry, with growing ties with the industry sector. The as fisheries and forestry, with growing ties with the industry sector. The region has a significant percentage of Chile’s PhD programmes, enrolment region has a significant percentage of Chile’s PhD programmes, enrolment and PhD-holding faculty. The University of Concepción has an Office for and PhD-holding faculty. The University of Concepción has an Office for Technology Development in place since 1996. Universidad del Desarrollo Technology Development in place since 1996. Universidad del Desarrollo maintains an active Centre for Innovation and the Promotion of maintains an active Centre for Innovation and the Promotion of Entrepreneurship. Entrepreneurship.

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…but so far their focus has been on knowledge …but so far their focus has been on knowledge production rather than on knowledge production rather than on knowledge transfer… transfer…

However, the overall capacity to absorb technological innovation is low However, the overall capacity to absorb technological innovation is low in the Bío Bío Region. Much of the research carried out in the higher in the Bío Bío Region. Much of the research carried out in the higher education institutions in the region is destined for transferral to other more education institutions in the region is destined for transferral to other more technologically advanced regions, due to the structure of the regional technologically advanced regions, due to the structure of the regional economy. There is a gap between the higher education sector and market economy. There is a gap between the higher education sector and market needs. Particularly, the linkages between higher education institutions and needs. Particularly, the linkages between higher education institutions and small and medium sized enterprises (SMEs) need to be strengthened, for small and medium sized enterprises (SMEs) need to be strengthened, for example through the establishment of a single entry point for the SMEs example through the establishment of a single entry point for the SMEs within a group of higher education institutions or the development of sector within a group of higher education institutions or the development of sector based approaches to address the needs of the SMEs. Currently, SMEs have based approaches to address the needs of the SMEs. Currently, SMEs have limited information about the capability of higher education institutions to limited information about the capability of higher education institutions to assist them and higher education institutions lack the information, resources assist them and higher education institutions lack the information, resources and data bases to respond in a sensitive and timely manner. There is some and data bases to respond in a sensitive and timely manner. There is some support to new business formation in the form of incubators, but limited support to new business formation in the form of incubators, but limited collaboration across higher education institutions. collaboration across higher education institutions.

…furthermore, there is a large public role in …furthermore, there is a large public role in the Bío Bío Regional Innovation System that the Bío Bío Regional Innovation System that can influence entrepreneurship attitudes… can influence entrepreneurship attitudes…

The Bío Bío Region is investing in the order of tens of millions of The Bío Bío Region is investing in the order of tens of millions of US dollars per year in innovation with the expectation that this investment US dollars per year in innovation with the expectation that this investment will pay back through the generation of increased private sector activity. will pay back through the generation of increased private sector activity. There is a need to foster a sense of greater responsibility to show an overall There is a need to foster a sense of greater responsibility to show an overall positive return to the public investment. There is also a risk that the large positive return to the public investment. There is also a risk that the large public role in the regional innovation system may lead to the funding of public role in the regional innovation system may lead to the funding of innovations which are commercially not viable or that the publicly-driven innovations which are commercially not viable or that the publicly-driven innovation system undercuts its own goals of developing entrepreneurship. innovation system undercuts its own goals of developing entrepreneurship.

The following measures would promote regional innovation in the The following measures would promote regional innovation in the Bío Bío Region Bío Bío Region • The strong public presence in the innovation model should be • The strong public presence in the innovation model should be recognised and its potential deficiencies should be reviewed. recognised and its potential deficiencies should be reviewed. Innovation authorities should take explicit actions to diminish Innovation authorities should take explicit actions to diminish potential negative consequences of the large role of public agencies potential negative consequences of the large role of public agencies as direct service providers, i.e. funders of innovation, and ensure as direct service providers, i.e. funders of innovation, and ensure

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that this presence does not discourage the emergence of private that this presence does not discourage the emergence of private sector actors. sector actors. • Concern to monitor the rate of return on public investments should • Concern to monitor the rate of return on public investments should be increased, for its own sake and as a means of encouraging high be increased, for its own sake and as a means of encouraging high calibre entrepreneurship and competitiveness. calibre entrepreneurship and competitiveness. • The balance between key informant data and more neutral statistical • The balance between key informant data and more neutral statistical measures of innovation performance should be revisited as it affects measures of innovation performance should be revisited as it affects policymaking. Key informant information should in all cases be policymaking. Key informant information should in all cases be complemented with views from outside the region, and selection complemented with views from outside the region, and selection and other tendencies toward biases should be mitigated. and other tendencies toward biases should be mitigated. • A wider portfolio of data related to the characteristics and • A wider portfolio of data related to the characteristics and performance of firms should be developed in conjunction with the performance of firms should be developed in conjunction with the promotion of cluster-building strategies and evidence based decision promotion of cluster-building strategies and evidence based decision making in general. making in general. • Efforts to unify the main goals for innovation in the region in the • Efforts to unify the main goals for innovation in the region in the short-to-medium-term should seek to identify a central focus. short-to-medium-term should seek to identify a central focus. Innovation authorities should guard against pursuing too many goals Innovation authorities should guard against pursuing too many goals simultaneously and/or dispersing energy and efforts. simultaneously and/or dispersing energy and efforts. • The incentives for higher education institutions should be • The incentives for higher education institutions should be continuously reviewed to find ways of influencing these toward continuously reviewed to find ways of influencing these toward more concrete participation in innovation activities and move from more concrete participation in innovation activities and move from knowledge production to knowledge transfer and to perceive job knowledge production to knowledge transfer and to perceive job creation as one of the goals of innovation. creation as one of the goals of innovation. • Higher education institutions should step up their innovation and • Higher education institutions should step up their innovation and knowledge transfer activities and share good practices among knowledge transfer activities and share good practices among themselves in a systematic manner. Furthermore universities should themselves in a systematic manner. Furthermore universities should learn from good examples provided by the leading technical training learn from good examples provided by the leading technical training centres, professional institutes and private institutions to improve centres, professional institutes and private institutions to improve labour market relevance of their learning programmes. labour market relevance of their learning programmes. • Co-operation among private sector businesses, public • Co-operation among private sector businesses, public administration, regional development agencies and higher education administration, regional development agencies and higher education institutions should be expanded. Three courses of action could be institutions should be expanded. Three courses of action could be followed: i) address the needs of local enterprises that are capable of followed: i) address the needs of local enterprises that are capable of exploiting research results; ii) encourage local industry to diversify exploiting research results; ii) encourage local industry to diversify in activities in promising new fields; and iii) focus on sector-based in activities in promising new fields; and iii) focus on sector-based cluster development in order to approach the small and medium cluster development in order to approach the small and medium sized enterprises (SMEs). In addition, establishing single entry sized enterprises (SMEs). In addition, establishing single entry points for SMEs within a single higher education institution or a points for SMEs within a single higher education institution or a group of institutions should be encouraged. group of institutions should be encouraged.

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Social, cultural and environmental development in the Bío Bío Region Social, cultural and environmental development in the Bío Bío Region

The challenges in the Bío Bío Region are The challenges in the Bío Bío Region are manifold, ranging from poverty and indigence, manifold, ranging from poverty and indigence, ethnic diversity, environmental degradation and ethnic diversity, environmental degradation and urban-rural divide… urban-rural divide…

…higher education institutions see widening …higher education institutions see widening access as their key contribution to regional access as their key contribution to regional development. They also provide a wide range of development. They also provide a wide range of services in the health and social sector. services in the health and social sector.

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while widening access will contribute to outmigration if the best and while widening access will contribute to outmigration if the best and brightest leave the region to find work opportunities elsewhere, and service brightest leave the region to find work opportunities elsewhere, and service delivery will address the symptoms of poverty and indigence, but not the delivery will address the symptoms of poverty and indigence, but not the causes, there is a need to develop more sustainable ways to collaborate with causes, there is a need to develop more sustainable ways to collaborate with the “harder to reach” communities. the “harder to reach” communities.

… there is a need to reach out and empower … there is a need to reach out and empower communities to address their own challenges by communities to address their own challenges by strengthening the social economy, cultural strengthening the social economy, cultural identity and environmental development... identity and environmental development...

Community development programmes aim to build capacity by enabling Community development programmes aim to build capacity by enabling communities to respond to change and emerging social, economic and communities to respond to change and emerging social, economic and environmental challenges. The Universidad Católica de la Santísima environmental challenges. The Universidad Católica de la Santísima Concepción has taken on an important role in supporting sustainable Concepción has taken on an important role in supporting sustainable community development in the two rural areas of Coronel and Arauco. In community development in the two rural areas of Coronel and Arauco. In Coronel, the university supports the local communities to move away from Coronel, the university supports the local communities to move away from capture fisheries to aquaculture. In Arauco, the university has launched the capture fisheries to aquaculture. In Arauco, the university has launched the Agricultural Technology Transfer Centre to support sustainable economic Agricultural Technology Transfer Centre to support sustainable economic development of the Mapuche population. In addition, some institutions, for development of the Mapuche population. In addition, some institutions, for example the University of Bío Bío, provide significant contributions to local example the University of Bío Bío, provide significant contributions to local development by bringing in the training and the knowledge required for the development by bringing in the training and the knowledge required for the definition and implementation of regional strategies. However, higher definition and implementation of regional strategies. However, higher education institutions, in collaboration with local and regional authorities, education institutions, in collaboration with local and regional authorities, could also play a more prominent role in training community development could also play a more prominent role in training community development practitioners, providing lifelong learning and re-skilling and up-skilling practitioners, providing lifelong learning and re-skilling and up-skilling opportunities, conducting research into specific issues and best practices and opportunities, conducting research into specific issues and best practices and developing co-operation and research opportunities. There is also developing co-operation and research opportunities. There is also considerable underused potential in environmental and cultural development considerable underused potential in environmental and cultural development as well as international collaboration beyond Spanish speaking regions. as well as international collaboration beyond Spanish speaking regions.

The following measures would enhance the contribution of higher The following measures would enhance the contribution of higher education institutions to the social, cultural and environmental education institutions to the social, cultural and environmental development in the Bío Bío Region: development in the Bío Bío Region: • A systematic exchange of information and experience should be put • A systematic exchange of information and experience should be put in place between higher education institutions in social, cultural and in place between higher education institutions in social, cultural and environmental matters facilitated by the regional government in environmental matters facilitated by the regional government in order to bring greater efficiency. Such a forum could organise order to bring greater efficiency. Such a forum could organise thematic events, with regular information retrieval and exchange thematic events, with regular information retrieval and exchange facilitated by a dedicated website. As a first step, higher education facilitated by a dedicated website. As a first step, higher education institutions’ current connections, initiatives and projects involving institutions’ current connections, initiatives and projects involving

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stakeholder collaboration, community development and/or outreach stakeholder collaboration, community development and/or outreach should be mapped and published in the collaboration platform. should be mapped and published in the collaboration platform. • In addition to widening access and providing services to various • In addition to widening access and providing services to various communities, higher education institutions should engage in long- communities, higher education institutions should engage in long- term community development seeking ways to empower term community development seeking ways to empower communities to find their own solutions to various economic, social, communities to find their own solutions to various economic, social, cultural, environmental challenges which are global, national and cultural, environmental challenges which are global, national and local in nature. They should consider ways to move away from local in nature. They should consider ways to move away from combating poverty to fostering wealth and job creation through combating poverty to fostering wealth and job creation through social entrepreneurship. The region should be seen as a “laboratory” social entrepreneurship. The region should be seen as a “laboratory” for developing research, students’ work-based and experiential for developing research, students’ work-based and experiential learning and development projects in many different fields. learning and development projects in many different fields. • The region should, in collaboration with the higher education • The region should, in collaboration with the higher education institutions and other stakeholders, develop a strategy that sees arts institutions and other stakeholders, develop a strategy that sees arts and culture as an agent of development through: i) direct benefit in and culture as an agent of development through: i) direct benefit in enhancing the quality of life of the diverse population; ii) indirect enhancing the quality of life of the diverse population; ii) indirect economic benefits in attracting and retaining talent which can drive economic benefits in attracting and retaining talent which can drive the knowledge society, and iii) a direct contribution to the creative the knowledge society, and iii) a direct contribution to the creative industries through enterprise formation, growth, productivity and industries through enterprise formation, growth, productivity and employment. This strategy should address the needs of the diverse employment. This strategy should address the needs of the diverse populations in the region and enhance the internationalisation of the populations in the region and enhance the internationalisation of the region. region. • The region should, in collaboration with higher education • The region should, in collaboration with higher education institutions and public and private sector increase efforts to support institutions and public and private sector increase efforts to support sustainable environmental and economic development through a sustainable environmental and economic development through a comprehensive strategy bringing together diverse regional actors to comprehensive strategy bringing together diverse regional actors to sustainability process. Higher education institutions should scale up sustainability process. Higher education institutions should scale up their efforts to provide learning and further education programmes their efforts to provide learning and further education programmes in sustainable development; to act as a source of expertise through in sustainable development; to act as a source of expertise through research, consultancy and demonstration; to demonstrate good research, consultancy and demonstration; to demonstrate good practice through campus waste management and development practice through campus waste management and development activities, strategic planning, building design, waste minimisation activities, strategic planning, building design, waste minimisation and water and energy efficiency practice, responsible purchasing and water and energy efficiency practice, responsible purchasing programmes and good citizen type initiatives like “Green Campus”. programmes and good citizen type initiatives like “Green Campus”.

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Regional capacity building Regional capacity building

The Bío Bío Region has pioneered in building The Bío Bío Region has pioneered in building capacity for regional engagement… capacity for regional engagement…

Traditions of partnerships within the region between higher education Traditions of partnerships within the region between higher education institutions, businesses, regional agencies and government bodies, acting in institutions, businesses, regional agencies and government bodies, acting in concert with each other, is a critical factor in attracting foreign direct concert with each other, is a critical factor in attracting foreign direct investment and partnering with other regions and higher education investment and partnering with other regions and higher education institutions globally. The Bío Bío Region has been a national leader in institutions globally. The Bío Bío Region has been a national leader in building capacity in regional development and innovation. Innova Bío Bío building capacity in regional development and innovation. Innova Bío Bío and CORECYT have contributed to regional growth within the regional and CORECYT have contributed to regional growth within the regional development strategy and the regional agenda has interpreted territorial development strategy and the regional agenda has interpreted territorial strategies with participation of higher education institutions. The higher strategies with participation of higher education institutions. The higher education institutions in the Bío Bío Region as well as students and staff education institutions in the Bío Bío Region as well as students and staff engage in wide ranging collaboration including knowledge transfer, engage in wide ranging collaboration including knowledge transfer, collaborative efforts with business and industry, community outreach and collaborative efforts with business and industry, community outreach and volunteering. There is evidence of innovative programmes and projects, volunteering. There is evidence of innovative programmes and projects, strong civic leadership and increasing collaboration of higher education strong civic leadership and increasing collaboration of higher education institutions in regional development. institutions in regional development.

… but collaboration remains a challenge as … but collaboration remains a challenge as limited resources are spread thin and there is limited resources are spread thin and there is often a lack of critical mass to generate projects often a lack of critical mass to generate projects which will have real impact at the local and which will have real impact at the local and regional level and create multiplier effects… regional level and create multiplier effects…

While there is an abundance of initiatives and projects and evidence of While there is an abundance of initiatives and projects and evidence of excellence, the work is often project-based and/or driven by the action on excellence, the work is often project-based and/or driven by the action on the initiative of individuals or single departments. Collaborative the initiative of individuals or single departments. Collaborative mechanisms among higher education institutions to build capacity and foster mechanisms among higher education institutions to build capacity and foster joint efforts for regional development remain limited in scope and joint efforts for regional development remain limited in scope and representation. In spite of broader initiatives such as the Programmes for representation. In spite of broader initiatives such as the Programmes for Improvement of Competitiveness (most notably PMC on “Bío Bío Educates Improvement of Competitiveness (most notably PMC on “Bío Bío Educates and Innovates”), the picture of the diverse programmes and projects with and Innovates”), the picture of the diverse programmes and projects with participation of higher education institutions is one of fragmentation built on participation of higher education institutions is one of fragmentation built on generally separate and non-coordinated initiatives stemming more from generally separate and non-coordinated initiatives stemming more from specific circumstances than an overarching vision of needs and possible specific circumstances than an overarching vision of needs and possible converging efforts. New promising initiatives include the establishment of a converging efforts. New promising initiatives include the establishment of a health cluster in the region in collaboration between the University of health cluster in the region in collaboration between the University of Concepción, Universidad Católica de la Santísima Concepción and Concepción, Universidad Católica de la Santísima Concepción and

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San Sebastián University. This initiative holds much promise for regional San Sebastián University. This initiative holds much promise for regional development and the region’s low income population but care should be development and the region’s low income population but care should be taken to ensure that all relevant accredited higher education institutions, for taken to ensure that all relevant accredited higher education institutions, for example the Universidad del Desarrollo and University of Bío Bío, have the example the Universidad del Desarrollo and University of Bío Bío, have the opportunity to participate in the collaboration. opportunity to participate in the collaboration.

… and incentives to mobilise higher education … and incentives to mobilise higher education institutions and their staff for regional and institutions and their staff for regional and local development remain limited… local development remain limited…

Higher education institution’s culture, capacity for change, leadership Higher education institution’s culture, capacity for change, leadership and the appropriate co-ordination mechanisms and oversight regionally play and the appropriate co-ordination mechanisms and oversight regionally play an important role in their capacity to engage with partnership building and an important role in their capacity to engage with partnership building and collaborative action. In Chile, the incentive structures for mobilising higher collaborative action. In Chile, the incentive structures for mobilising higher education institutions for regional and city development are limited. There is education institutions for regional and city development are limited. There is no explicit third task or regional development task assigned to higher no explicit third task or regional development task assigned to higher education institutions and regional engagement is left to the initiative of the education institutions and regional engagement is left to the initiative of the individual institutions. In terms of institutional management, Chile’s public individual institutions. In terms of institutional management, Chile’s public universities give a major role in institutional decision-making to academic universities give a major role in institutional decision-making to academic staff, but very little influence is given to external partners. Higher education staff, but very little influence is given to external partners. Higher education institutions should be encouraged to build their capacity, allowing them to institutions should be encouraged to build their capacity, allowing them to recruit rectors from outside the university and to encourage them to adopt recruit rectors from outside the university and to encourage them to adopt modern management practices and free them from cumbersome civil service modern management practices and free them from cumbersome civil service controls and regulations. controls and regulations.

… some national level initiatives help reform … some national level initiatives help reform higher education and could also have stronger higher education and could also have stronger impact on regional development… impact on regional development…

The Government of Chile has taken steps to reform higher education. The Government of Chile has taken steps to reform higher education. MECESUP (Programme for the Quality and Equity Improvement of Higher MECESUP (Programme for the Quality and Equity Improvement of Higher Education) was launched by the Chilean Ministry of Education in Education) was launched by the Chilean Ministry of Education in collaboration with the World Bank. It is a national top-down initiative collaboration with the World Bank. It is a national top-down initiative involving the central government’s thrust to improve the quality of higher involving the central government’s thrust to improve the quality of higher education. The 18% cap of funding for a single institution has guaranteed education. The 18% cap of funding for a single institution has guaranteed that 70% of the funds have been directed to higher education institutions that 70% of the funds have been directed to higher education institutions outside of Santiago and that higher education institutions outside the outside of Santiago and that higher education institutions outside the national capital also benefit from the programme. The recent efforts to national capital also benefit from the programme. The recent efforts to involve also institutions outside of the traditional universities in some involve also institutions outside of the traditional universities in some activities are commendable. Of particular interest are the performance activities are commendable. Of particular interest are the performance agreements which require institutional improvement plans and enhance agreements which require institutional improvement plans and enhance accountability and transparency. Ensuring that the critical reform initiatives accountability and transparency. Ensuring that the critical reform initiatives

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are scaled up throughout the system is part of the challenge facing the are scaled up throughout the system is part of the challenge facing the Government of Chile. To improve management capacity, transparency and Government of Chile. To improve management capacity, transparency and accountability across the higher education sector, the performance based accountability across the higher education sector, the performance based agreements should be made available to all accredited higher education agreements should be made available to all accredited higher education institutions. institutions. While it was outside the scope of the review to assess the Chilean higher While it was outside the scope of the review to assess the Chilean higher education funding system, the Chilean government should take steps, in line education funding system, the Chilean government should take steps, in line of the recommendations of the recent OECD/World Bank review of tertiary of the recommendations of the recent OECD/World Bank review of tertiary education in Chile (2009) to address the considerable financial burden that education in Chile (2009) to address the considerable financial burden that the education system currently places on students and their families as well the education system currently places on students and their families as well as the fact that public funding for higher education is not available for all as the fact that public funding for higher education is not available for all accredited institutions. accredited institutions.

The following measures would build capacity for regional The following measures would build capacity for regional development: development: • Chile should continue and deepen the decentralisation process and • Chile should continue and deepen the decentralisation process and enhance capacity building in its regions. Experience in OECD enhance capacity building in its regions. Experience in OECD countries shows that increased decision-making power at sub- countries shows that increased decision-making power at sub- national levels of government combined with adequate co- national levels of government combined with adequate co- ordination mechanisms can unleash the potential in the regions. As ordination mechanisms can unleash the potential in the regions. As regional capacities are built through “learning by doing”, increased regional capacities are built through “learning by doing”, increased responsibilities at the regional level are necessary to build skills and responsibilities at the regional level are necessary to build skills and develop problem solving approaches. develop problem solving approaches. • Regional and local engagement and more specifically its wide • Regional and local engagement and more specifically its wide agenda for economic, social and cultural development should be agenda for economic, social and cultural development should be made explicit in higher education legislation. Regional engagement made explicit in higher education legislation. Regional engagement should be encouraged through strengthening the National should be encouraged through strengthening the National Commission of Accreditation Process. In addition, performance Commission of Accreditation Process. In addition, performance agreements should be made available to all accredited higher agreements should be made available to all accredited higher education institutions. education institutions. • Incentives for higher education institutions should be created to • Incentives for higher education institutions should be created to engage in local and regional development through long term core engage in local and regional development through long term core funding and additional strategic incentive-based funding schemes. funding and additional strategic incentive-based funding schemes. In addition, local and regional engagement of higher education staff In addition, local and regional engagement of higher education staff should be acknowledged and rewarded by higher education should be acknowledged and rewarded by higher education institutions in their recruitment, hiring and reward systems. institutions in their recruitment, hiring and reward systems. • Evidence-based decision making should be strengthened in the • Evidence-based decision making should be strengthened in the region by focusing on a dashboard of key indicators that the key region by focusing on a dashboard of key indicators that the key regional stakeholders can monitor over time. This can result in a regional stakeholders can monitor over time. This can result in a

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shared local knowledge base which will galvanise the development shared local knowledge base which will galvanise the development of a strong local strategy for change. of a strong local strategy for change. • The capacity for regional engagement should be improved in the • The capacity for regional engagement should be improved in the region among key agencies and higher education institutions region among key agencies and higher education institutions through forums for communication where good practices can be through forums for communication where good practices can be fostered and through targeted training programmes with focus on fostered and through targeted training programmes with focus on practical problem solving. practical problem solving. • The joint resources of the higher education institutions should be • The joint resources of the higher education institutions should be mobilised for the preparation and implementation of regional mobilised for the preparation and implementation of regional strategies. strategies. • A regional strategy platform should be developed to complement the • A regional strategy platform should be developed to complement the current project-based approaches with a more system-based current project-based approaches with a more system-based approach. approach. • Higher education institutions should establish modern • Higher education institutions should establish modern administration with human resources and financial resources administration with human resources and financial resources management systems. In addition, they should review recruitment, management systems. In addition, they should review recruitment, hiring and reward systems to include regional development agenda. hiring and reward systems to include regional development agenda.

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Chapter 1: The Bío Bío Region and its higher education Chapter 1: The Bío Bío Region and its higher education institutions institutions

Over recent years Chile has enjoyed economic growth and institutional Over recent years Chile has enjoyed economic growth and institutional stability and reform. This chapter presents the profile of the Bío Bío Region stability and reform. This chapter presents the profile of the Bío Bío Region with its main economic activities and its socio-economic characteristics as with its main economic activities and its socio-economic characteristics as compared to other Chilean regions. It examines the expansion of higher compared to other Chilean regions. It examines the expansion of higher education institutions in the region and their role in regional development. It education institutions in the region and their role in regional development. It identifies the main strengths and weaknesses of the region and analyses the identifies the main strengths and weaknesses of the region and analyses the major challenges in the context of the increasing participation of higher major challenges in the context of the increasing participation of higher education institutions in the definition and implementation of regional education institutions in the definition and implementation of regional development strategies. development strategies.

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1.1 Bío Bío Region and administrative organisation 1.1 Bío Bío Region and administrative organisation

The Bío Bío Region is one of 15 administrative regions1 in Chile. It The Bío Bío Region is one of 15 administrative regions1 in Chile. It enjoys a central position in continental Chile, between the regions of Maule enjoys a central position in continental Chile, between the regions of Maule to the North and Araucanía to the South. The distance between Concepción to the North and Araucanía to the South. The distance between Concepción and the national capital of Santiago is of 500 km. The region comprises four and the national capital of Santiago is of 500 km. The region comprises four provinces (Ñuble, Concepción, Bío Bío, and Arauco) each led by an provinces (Ñuble, Concepción, Bío Bío, and Arauco) each led by an appointed governor, and 54 communes.2 The Province of Concepción with appointed governor, and 54 communes.2 The Province of Concepción with its 12 communes, including the capital city (Concepción), is the most its 12 communes, including the capital city (Concepción), is the most populated. It represents 36% of the regional territory and is the second populated. It represents 36% of the regional territory and is the second largest province. Ñuble (capital: Chillán) is the largest province with 40% of largest province. Ñuble (capital: Chillán) is the largest province with 40% of the regional territory comprising 21 communes. The Province of Bío Bío the regional territory comprising 21 communes. The Province of Bío Bío (capital: Los Ángeles) is subdivided into 14 communes. In the southwest of (capital: Los Ángeles) is subdivided into 14 communes. In the southwest of the regional territory, Arauco with its 7 communes (capital Lebu) the regional territory, Arauco with its 7 communes (capital Lebu) encompasses only 8% of the regional population and 15% of the regional encompasses only 8% of the regional population and 15% of the regional area. The longest distance between two provincial capitals is not greater than area. The longest distance between two provincial capitals is not greater than 250 km. The region also comprises ten “Planning Territories” representing 250 km. The region also comprises ten “Planning Territories” representing groups of communes with common economic and social characteristics, on groups of communes with common economic and social characteristics, on the basis of voluntary agreements favouring integrated territorial strategies the basis of voluntary agreements favouring integrated territorial strategies and projects with critical mass. and projects with critical mass. The Chilean administrative system is characterised by strong The Chilean administrative system is characterised by strong centralisation, although decentralisation trends have begun to emerge in centralisation, although decentralisation trends have begun to emerge in recent years (see Section 1.6).3 Regional governments are led by an recent years (see Section 1.6).3 Regional governments are led by an “intendente”, designated by the President of the republic. The intendente is “intendente”, designated by the President of the republic. The intendente is also the president of the regional government’s general council. In the also the president of the regional government’s general council. In the Bío Bío Region, this council is composed of 22 members, elected for 4 years Bío Bío Region, this council is composed of 22 members, elected for 4 years by the municipal council members of the 54 communes. The general council by the municipal council members of the 54 communes. The general council members are elected by provincial quotas (The situation will change after members are elected by provincial quotas (The situation will change after the forthcoming regional elections in 2010 or 2011 when the members will the forthcoming regional elections in 2010 or 2011 when the members will be elected, for the first time, through direct popular vote). Presently the be elected, for the first time, through direct popular vote). Presently the Province of Concepción has 9 members, Ñuble 5 members, the Province of Province of Concepción has 9 members, Ñuble 5 members, the Province of Bío Bío 5 members and Arauco 3 members. The regional government Bío Bío 5 members and Arauco 3 members. The regional government prepares and approves regional development policies, plans and prepares and approves regional development policies, plans and programmes; prepares the regional budget proposal; decides assignment of programmes; prepares the regional budget proposal; decides assignment of resources from sector funding sources; develops territorial planning, resources from sector funding sources; develops territorial planning, training, technological, social, cultural, environmental actions; offers advice training, technological, social, cultural, environmental actions; offers advice to municipalities and prepares for emergency situations. The intendente to municipalities and prepares for emergency situations. The intendente represents the President of the republic, develops duties related with the represents the President of the republic, develops duties related with the maintenance of public order and coordinates and controls public services. maintenance of public order and coordinates and controls public services. The governance structure of the Bío Bío Region’s is shown in Table 1.1. The governance structure of the Bío Bío Region’s is shown in Table 1.1.

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Table 1.1. The governance structure of the Bío Bío Region Table 1.1. The governance structure of the Bío Bío Region

Bío Bío Region a) The government of the region – national government line Bío Bío Region a) The government of the region – national government line • Intendant (Intendente): the direct representative of the President of the Republic in the • Intendant (Intendente): the direct representative of the President of the Republic in the region. The intendente is named by the president of the republic and is maintained in the office region. The intendente is named by the president of the republic and is maintained in the office at the discretion of the president. The intendente directs the government of the region at the discretion of the president. The intendente directs the government of the region according to the guidelines given directly by the president. according to the guidelines given directly by the president. b) The regional government – territorially decentralised line b) The regional government – territorially decentralised line • Intendant: acts as the executive head of the regional government and presides the Regional • Intendant: acts as the executive head of the regional government and presides the Regional Council. Council. • Regional Council: supervises the intendente’s duties; 22 members elected for four years • Regional Council: supervises the intendente’s duties; 22 members elected for four years (according to quotas) by the members of the 54 municipal councils. In 2009, a reform was (according to quotas) by the members of the 54 municipal councils. In 2009, a reform was launched to elect regional councillors through a direct popular democratic election. This launched to elect regional councillors through a direct popular democratic election. This change will come into effect in the forthcoming regional elections in 2011 or 2012. change will come into effect in the forthcoming regional elections in 2011 or 2012. Main functions: Main functions: • Design programmes and policies for regional development and productivity. • Design programmes and policies for regional development and productivity. • Approve the regional development plan. • Approve the regional development plan. • Define and take investment decisions regarding use of resources from regionally defined • Define and take investment decisions regarding use of resources from regionally defined public investments, especially from the National Fund for Regional Development. public investments, especially from the National Fund for Regional Development. • Advise municipalities. • Advise municipalities. • Build and administer the paving of sidewalks and roads in rural areas. • Build and administer the paving of sidewalks and roads in rural areas. • Carry out various tasks related to land management, human settlements and infrastructure • Carry out various tasks related to land management, human settlements and infrastructure equipment. equipment. c) Other public administration units in the region: c) Other public administration units in the region: • Ministerial regional secretaries: national ministries’ regional representatives who coordinate • Ministerial regional secretaries: national ministries’ regional representatives who coordinate the public services under their responsibility. The Regional Planning Secretariat is a key the public services under their responsibility. The Regional Planning Secretariat is a key institution in the investment process. institution in the investment process. Provinces (4) • Governor: appointed by the President. Governor represents the intendente in the province. Provinces (4) • Governor: appointed by the President. Governor represents the intendente in the province. • Provincial Economic Council: headed by the governor, acts as an advisory institution to the • Provincial Economic Council: headed by the governor, acts as an advisory institution to the provincial governor. provincial governor. Main functions: supervise public services provided in the province. Maintain public order and Main functions: supervise public services provided in the province. Maintain public order and citizens’ safety. citizens’ safety. Municipalities • Mayor: highest authority in a municipality; chair of the municipal council. Municipalities • Mayor: highest authority in a municipality; chair of the municipal council. (54) • Municipal council: advises, regulates and supervises the mayor’s performance. It is in charge (54) • Municipal council: advises, regulates and supervises the mayor’s performance. It is in charge Public of ensuring the effective participation of the local community. Public of ensuring the effective participation of the local community. corporations, • Economic and social council: composed of representatives of civil organisations of the corporations, • Economic and social council: composed of representatives of civil organisations of the with both legal municipality. with both legal municipality. personality and personality and Both the mayor and the council are chosen through popular elections every four years. Both the mayor and the council are chosen through popular elections every four years. private assets, private assets, whose end is to Main functions: whose end is to Main functions: satisfy the Exclusive functions: to develop, approve and modify the communal zoning plan; to promote local satisfy the Exclusive functions: to develop, approve and modify the communal zoning plan; to promote local needs of the development; to enforce all measures regarding transport; to implement provisions regarding needs of the development; to enforce all measures regarding transport; to implement provisions regarding local community construction and the planning and urban regulation of the commune. local community construction and the planning and urban regulation of the commune. Shared responsibilities: public health, primary and secondary education, culture, work training Shared responsibilities: public health, primary and secondary education, culture, work training and economic development, tourism, traffic regulations, social housing development and sanitary and economic development, tourism, traffic regulations, social housing development and sanitary infrastructure, citizen safety. infrastructure, citizen safety. Municipalities can collect fees for municipal services, concessions or licences; enforce taxes on Municipalities can collect fees for municipal services, concessions or licences; enforce taxes on activities or goods with a clear local identity to be used for local development; award grants to activities or goods with a clear local identity to be used for local development; award grants to public or private non-profit organisations; acquire or transfer moveable properties or real estate. public or private non-profit organisations; acquire or transfer moveable properties or real estate.

Source: adapted from OECD (2009a), Territorial Reviews: Chile, OECD Publishing, Paris, p. 47 Source: adapted from OECD (2009a), Territorial Reviews: Chile, OECD Publishing, Paris, p. 47

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1.2 Demography and society 1.2 Demography and society

The Bío Bío Region is the second most populated region, after the The Bío Bío Region is the second most populated region, after the Metropolitan region. According to the 2002 census it comprised 1.9 million Metropolitan region. According to the 2002 census it comprised 1.9 million inhabitants (12% of the population). It is the region with the highest inhabitants (12% of the population). It is the region with the highest percentage of rural population (18%). It is also one of the most densely percentage of rural population (18%). It is also one of the most densely populated (50 inhabitants per km2), surpassed only by the Metropolitan and populated (50 inhabitants per km2), surpassed only by the Metropolitan and Valparaíso regions. Most of the population lives in the coastal zones of the Valparaíso regions. Most of the population lives in the coastal zones of the Province of Concepción. Half of the regional population (912 889) live in Province of Concepción. Half of the regional population (912 889) live in this province in which the communes of Concepción, Hualpén, and this province in which the communes of Concepción, Hualpén, and Talcahuano concentrate 25% of the region’s population. The urban Talcahuano concentrate 25% of the region’s population. The urban agglomeration known as the Greater Concepción, also including Penco, San agglomeration known as the Greater Concepción, also including Penco, San Pedro de la Paz and Chiguayante, represents 36% of the population living in Pedro de la Paz and Chiguayante, represents 36% of the population living in the Bío Bío Region. Besides the coast, there is another important population the Bío Bío Region. Besides the coast, there is another important population concentration in the Province of Ñuble, home to 24% of the regional concentration in the Province of Ñuble, home to 24% of the regional population (483 103 inhabitants). Around the central highway, Chillán, population (483 103 inhabitants). Around the central highway, Chillán, Chillán Viejo, Bulnes and San Carlos comprise 255 000 inhabitants, (almost Chillán Viejo, Bulnes and San Carlos comprise 255 000 inhabitants, (almost 14% of the region’s population). The third most populated province is 14% of the region’s population). The third most populated province is Bío Bío, with 19% of the regional population (353 315 inhabitants). Its Bío Bío, with 19% of the regional population (353 315 inhabitants). Its capital, Los Ángeles has over 150 000 inhabitants. capital, Los Ángeles has over 150 000 inhabitants. The population in the Bío Bío Region grew in the last inter-census The population in the Bío Bío Region grew in the last inter-census period (1992-2002) by 7% (national growth rate was 21%). In terms of period (1992-2002) by 7% (national growth rate was 21%). In terms of migration, the region has been a net exporter of population. Net migration migration, the region has been a net exporter of population. Net migration was of 19 000 in 1997-2002, about 1% of the regional population. The main was of 19 000 in 1997-2002, about 1% of the regional population. The main reason appears to be lower wages, with departure after completion of reason appears to be lower wages, with departure after completion of secondary education but also after tertiary education (Aroca, 2004; secondary education but also after tertiary education (Aroca, 2004; Dresdner et al., 2005) (See Section 2.10). Around half of emigrants move to Dresdner et al., 2005) (See Section 2.10). Around half of emigrants move to the Metropolitan Region. Other destinations are the Valparaíso, Araucanía, the Metropolitan Region. Other destinations are the Valparaíso, Araucanía, Los Lagos, and Antofagasta regions. Moreover, the migratory process from Los Lagos, and Antofagasta regions. Moreover, the migratory process from rural areas to urban areas continued, with the proportion of urban dwellers rural areas to urban areas continued, with the proportion of urban dwellers increasing from 67% in 1962 to 82% in 2002 (Self-Evaluation Report, increasing from 67% in 1962 to 82% in 2002 (Self-Evaluation Report, SER). Within the region (2002 census) the communes receiving net SER). Within the region (2002 census) the communes receiving net immigration (Province of Concepción) are San Pedro de la Paz, immigration (Province of Concepción) are San Pedro de la Paz, Chiguayante, and Coronel whereas Concepción, Talcahuano, and Lota have Chiguayante, and Coronel whereas Concepción, Talcahuano, and Lota have lost population. Within the other provinces, Chillán Viejo and Los Ángeles lost population. Within the other provinces, Chillán Viejo and Los Ángeles exert a strong attraction. Chillán instead experienced net out migration. exert a strong attraction. Chillán instead experienced net out migration. The Bío Bío Region is culturally diverse. Of the total regional The Bío Bío Region is culturally diverse. Of the total regional population 7.8% declare to belong to one of the eight officially recognised population 7.8% declare to belong to one of the eight officially recognised ethnic groups, although the great majority of these are Mapuche4. Most have ethnic groups, although the great majority of these are Mapuche4. Most have moved to urban centres, living in conditions of poverty and indigence. They moved to urban centres, living in conditions of poverty and indigence. They are mainly located in Cañete, Talcahuano, Concepción, Tirúa, Coronel and are mainly located in Cañete, Talcahuano, Concepción, Tirúa, Coronel and San Pedro de la Paz. Alongside ethnic identity there remains in Bío Bío the San Pedro de la Paz. Alongside ethnic identity there remains in Bío Bío the

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heritage of certain activities that have evolved like coal mining, forestry, heritage of certain activities that have evolved like coal mining, forestry, fishing and agriculture, textiles and steel. There is however an insufficient fishing and agriculture, textiles and steel. There is however an insufficient recognition of cultural heritage that could contribute towards shaping a recognition of cultural heritage that could contribute towards shaping a stronger regional identity. stronger regional identity. As the rest of Chile, the region has experienced enormous improvement As the rest of Chile, the region has experienced enormous improvement in social conditions in the last two decades. At the national and regional in social conditions in the last two decades. At the national and regional levels the proportion of families that cannot satisfy their basic needs with levels the proportion of families that cannot satisfy their basic needs with their own income has fallen by a half between 1994 and 2006, while the their own income has fallen by a half between 1994 and 2006, while the proportion of indigents, depicting more serious poverty, was reduced by a proportion of indigents, depicting more serious poverty, was reduced by a third between 1992 and 2006. In a national comparison, Bío Bío is however third between 1992 and 2006. In a national comparison, Bío Bío is however one of the regions with the highest proportion of poor (20.7% versus 13.7%) one of the regions with the highest proportion of poor (20.7% versus 13.7%) and indigent (5.2% versus 3.2%) families (MIDEPLAN, 2006), alongside and indigent (5.2% versus 3.2%) families (MIDEPLAN, 2006), alongside Araucanía, Maule and Coquimbo, agriculture intensive regions whereas Araucanía, Maule and Coquimbo, agriculture intensive regions whereas Bío Bío, although strong in the primary sector is mostly characterised by its Bío Bío, although strong in the primary sector is mostly characterised by its manufacturing profile. manufacturing profile. Chile has experienced remarkable improvements in literacy rates over Chile has experienced remarkable improvements in literacy rates over the last two decades, now putting it at levels close to those of most OECD the last two decades, now putting it at levels close to those of most OECD countries. The Bío Bío Region is no exception to this national trend. The countries. The Bío Bío Region is no exception to this national trend. The percentage of the regional population that can write and read increased from percentage of the regional population that can write and read increased from 49% to 88% between 1992 and 2002. Considering only the population over 49% to 88% between 1992 and 2002. Considering only the population over 15 years of age the increase is even higher, with literacy rates jumping from 15 years of age the increase is even higher, with literacy rates jumping from 47% to 94% in the same period. The average number of schooling years has 47% to 94% in the same period. The average number of schooling years has also increased, with 15% of the population having 12 years of education in also increased, with 15% of the population having 12 years of education in 2002 (less than 12% 10 years earlier). However, a national comparison 2002 (less than 12% 10 years earlier). However, a national comparison shows that schooling levels are slightly lower in the region than in the rest of shows that schooling levels are slightly lower in the region than in the rest of Chile (16% with 12 years of education) because age groups over 40 years Chile (16% with 12 years of education) because age groups over 40 years present lower schooling rates in the region. Nonetheless, the overall gap present lower schooling rates in the region. Nonetheless, the overall gap tends to disappear, because these age groups now have schooling rates tends to disappear, because these age groups now have schooling rates comparable to national averages. comparable to national averages.

1.3 The regional economy 1.3 The regional economy

The Bío Bío Region is the second most important region in Chile behind The Bío Bío Region is the second most important region in Chile behind the Metropolitan Region (47.2% in 2004) by its contribution to the national the Metropolitan Region (47.2% in 2004) by its contribution to the national product, providing slightly over 10% of GDP in 2004 (OECD-World Bank, product, providing slightly over 10% of GDP in 2004 (OECD-World Bank, 2009). Sustained growth in economic activity in the region and country has 2009). Sustained growth in economic activity in the region and country has allowed the per capita income to increase steadily between 1990 and 2006. allowed the per capita income to increase steadily between 1990 and 2006. The regional economy grew 60% in this period, increasing the per capita The regional economy grew 60% in this period, increasing the per capita income from USD 2 500 to USD 4 000 (RSC, 2009), which puts the Bío Bío income from USD 2 500 to USD 4 000 (RSC, 2009), which puts the Bío Bío Region in the 9th position of the 15 Chilean regions. However, the national Region in the 9th position of the 15 Chilean regions. However, the national per capita income grew faster than the per capita income in the region. From per capita income grew faster than the per capita income in the region. From the perspective of the Chilean economy, the contribution of the Bío Bío the perspective of the Chilean economy, the contribution of the Bío Bío

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Region is very important for manufacturing (20.3% of the national GDP Region is very important for manufacturing (20.3% of the national GDP generated by this activity in 2005, second region behind Santiago), for generated by this activity in 2005, second region behind Santiago), for fishing (with 20.6%, second region behind Los Lagos) and for agriculture fishing (with 20.6%, second region behind Los Lagos) and for agriculture and forestry (third position behind O’Higgins and Maule with 15.1% in and forestry (third position behind O’Higgins and Maule with 15.1% in 2005) (OECD-World Bank, 2009). 2005) (OECD-World Bank, 2009). The most important sector of activity in the regional economy is The most important sector of activity in the regional economy is manufacturing. It represented in 2003 35% of regional GDP as compared to manufacturing. It represented in 2003 35% of regional GDP as compared to 15.8% for the national average. (OECD-World Bank, 2009). Natural 15.8% for the national average. (OECD-World Bank, 2009). Natural resource based activities (agriculture, fishing, forestry, energy production) resource based activities (agriculture, fishing, forestry, energy production) also represent a significant share of regional GDP, as indicated above. also represent a significant share of regional GDP, as indicated above. Agriculture remains an important economic activity: wheat and the Agriculture remains an important economic activity: wheat and the traditional crops continue to have great significance in the regional product traditional crops continue to have great significance in the regional product in spite of the development of forestry. Currently 16% of the regional area is in spite of the development of forestry. Currently 16% of the regional area is allocated to intensive use (annual crops, fruit and vineyards, vegetables and allocated to intensive use (annual crops, fruit and vineyards, vegetables and flowers, artificial grassland and fallow), 44% is used by prairies and 40% by flowers, artificial grassland and fallow), 44% is used by prairies and 40% by forest plantations. The generation of electric power is another productive forest plantations. The generation of electric power is another productive activity of national importance. It has been developed significantly in the activity of national importance. It has been developed significantly in the last decades, due to the exploitation of the hydroelectric potential of the last decades, due to the exploitation of the hydroelectric potential of the Bío Bío basin. Finally construction, financial services and commerce have Bío Bío basin. Finally construction, financial services and commerce have experienced considerable growth in the last decade of the 20th century, as in experienced considerable growth in the last decade of the 20th century, as in the rest of Chile. the rest of Chile. The entry of the Bío Bío Region into international markets has strongly The entry of the Bío Bío Region into international markets has strongly contributed to changing its economic structure. This is reflected in the contributed to changing its economic structure. This is reflected in the significance that the region’s exports have in the national context. At significance that the region’s exports have in the national context. At present, it exports products representing a value of over USD 4 billion present, it exports products representing a value of over USD 4 billion (FOB) that corresponds to 8% of the deliveries that Chile sends abroad. Its (FOB) that corresponds to 8% of the deliveries that Chile sends abroad. Its regional export development has been closely related to the manufacturing regional export development has been closely related to the manufacturing industry that processes forest and fishing resources. In 2006, 630 firms industry that processes forest and fishing resources. In 2006, 630 firms exported 855 different products to 130 countries. The three most important exported 855 different products to 130 countries. The three most important export markets for the region were the United States (25.3%), China (9%) export markets for the region were the United States (25.3%), China (9%) and Peru (7%). 57% of exports are directed towards North and South and Peru (7%). 57% of exports are directed towards North and South America, 25% to Asia and 14% to Europe. America, 25% to Asia and 14% to Europe. Forestry has considerable importance for the regional economy: it Forestry has considerable importance for the regional economy: it concentrates 50% of the planted surface in the country. Three quarters of the concentrates 50% of the planted surface in the country. Three quarters of the planted surface are covered by the Monterrey pine, while eucalyptus planted surface are covered by the Monterrey pine, while eucalyptus plantations occupy 20% of the rest. Forest growing is fast developing in the plantations occupy 20% of the rest. Forest growing is fast developing in the provinces of Ñuble, Bío Bío and Arauco, sharing homogeneously 97.5% of provinces of Ñuble, Bío Bío and Arauco, sharing homogeneously 97.5% of the planted surface. This activity has been facilitated by the opening to the planted surface. This activity has been facilitated by the opening to global markets and by subsidies supporting plantations and forest global markets and by subsidies supporting plantations and forest management. This has resulted in an annual decrease of agricultural land management. This has resulted in an annual decrease of agricultural land over recent years of around 3%. However, in the recent period the growth over recent years of around 3%. However, in the recent period the growth rate of plantations has decreased, in part because of the strong demand for rate of plantations has decreased, in part because of the strong demand for

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new lands, which has made the cost of land more expensive. This has led to new lands, which has made the cost of land more expensive. This has led to an increase of reforested areas with a decrease of the deforestation rate. an increase of reforested areas with a decrease of the deforestation rate. Wood industries (paper, paper products including cellulose, building Wood industries (paper, paper products including cellulose, building supplies and furniture) have developed in parallel, now representing a third supplies and furniture) have developed in parallel, now representing a third of manufacturing and 66% of regional exports. Round log and pulp chunk of manufacturing and 66% of regional exports. Round log and pulp chunk exports have decreased considerably as production efforts are being re- exports have decreased considerably as production efforts are being re- oriented to more elaborate products. oriented to more elaborate products. In 2008, the average labour force in the Bío Bío Region was of In 2008, the average labour force in the Bío Bío Region was of 760 000 workers, with slightly more than 91% employed and a participation 760 000 workers, with slightly more than 91% employed and a participation rate of 49%. Labour force and occupation in the Bío Bío Region constitute rate of 49%. Labour force and occupation in the Bío Bío Region constitute one tenth of the labour force and occupation at the national level. Two-thirds one tenth of the labour force and occupation at the national level. Two-thirds of the employed are dependent workers and one quarter are independent of the employed are dependent workers and one quarter are independent workers. The major contribution to employment comes from the tertiary workers. The major contribution to employment comes from the tertiary sector (62% in 2007). The other main employment sectors are agriculture sector (62% in 2007). The other main employment sectors are agriculture and fishing (15%) and manufacturing (also 15%) (RSC, 2009). The most and fishing (15%) and manufacturing (also 15%) (RSC, 2009). The most important change since 1986 is the reduction of the share of the primary important change since 1986 is the reduction of the share of the primary sector in employment: by one half for agricultural and fishing activities and sector in employment: by one half for agricultural and fishing activities and from 3% to 0.5% for mining, whereas the construction and tertiary sectors from 3% to 0.5% for mining, whereas the construction and tertiary sectors have increased their share (RSC, 2009). The rate of unemployment in the have increased their share (RSC, 2009). The rate of unemployment in the region is systematically higher than the national average: 8.7% in 2008 as region is systematically higher than the national average: 8.7% in 2008 as compared to 7.7% on the national level. In some periods the unemployment compared to 7.7% on the national level. In some periods the unemployment rate gap between the region and the country average has even been superior rate gap between the region and the country average has even been superior to 2%. One explanation is the big increase in the female labour force that the to 2%. One explanation is the big increase in the female labour force that the regional economy has not been able to absorb (Bruhn and Inostroza, 1997). regional economy has not been able to absorb (Bruhn and Inostroza, 1997). The Bío Bío Region is characterised by a “dual economy”: on one side, The Bío Bío Region is characterised by a “dual economy”: on one side, big, highly productive firms (forestry, steel) and on the other a wide array of big, highly productive firms (forestry, steel) and on the other a wide array of small and medium sized enterprises, with low absorptive capacity. 82% of small and medium sized enterprises, with low absorptive capacity. 82% of regional firms had sales of less than USD 100 000 in 2007 and these regional firms had sales of less than USD 100 000 in 2007 and these represent more than 80% of employment. The rate of firm creation is also represent more than 80% of employment. The rate of firm creation is also one of the lowest in the country, according to Benavente et al. (2008). one of the lowest in the country, according to Benavente et al. (2008). Although no figures were made available to the review team, it is also Although no figures were made available to the review team, it is also generally recognised that firm linkages are limited, with few supply chains generally recognised that firm linkages are limited, with few supply chains or innovation spillovers. or innovation spillovers.

1.4 Higher education in Chile 1.4 Higher education in Chile

Chile has enjoyed significant progress in tertiary education over the last Chile has enjoyed significant progress in tertiary education over the last decades, moving successfully from an elite to a mass higher education decades, moving successfully from an elite to a mass higher education system: “In the span of one generation, enrolment rates for students from the system: “In the span of one generation, enrolment rates for students from the two lowest income quintiles have risen by a factor of five.” (OECD- two lowest income quintiles have risen by a factor of five.” (OECD- World Bank, 2009) This major step has been taken thanks to bold policy World Bank, 2009) This major step has been taken thanks to bold policy innovations within a system where public and private institutions both play innovations within a system where public and private institutions both play

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important roles. In spite of the success, the percentage of graduates remains important roles. In spite of the success, the percentage of graduates remains below OECD average levels (13% versus 27% in 2004). The 2009 Tertiary below OECD average levels (13% versus 27% in 2004). The 2009 Tertiary Education Review of Chile (OECD, World Bank) also notes a number of Education Review of Chile (OECD, World Bank) also notes a number of challenges that need to be the focus of second generation higher education challenges that need to be the focus of second generation higher education reform: the high cost of education is mainly carried by students and their reform: the high cost of education is mainly carried by students and their families, while public spending per student is low by OECD standards. families, while public spending per student is low by OECD standards. Equity in access to higher education has not been achieved as it is linked to Equity in access to higher education has not been achieved as it is linked to differences between public and private secondary schools, the latter differences between public and private secondary schools, the latter providing better secondary graduation rates and preparation for university providing better secondary graduation rates and preparation for university entrance. Student aid, although it has increased substantially, is still not entrance. Student aid, although it has increased substantially, is still not available to all those who should be able to benefit from it. The relevance of available to all those who should be able to benefit from it. The relevance of higher education requires attention as there is a need to move away from higher education requires attention as there is a need to move away from career based approach towards competence building. In addition, all higher career based approach towards competence building. In addition, all higher education institutions which have been accredited should have access to education institutions which have been accredited should have access to public funding. public funding. There are three types of higher education institutions in Chile: technical There are three types of higher education institutions in Chile: technical training centres (CFTs), professional institutes (IPs) and universities. The training centres (CFTs), professional institutes (IPs) and universities. The universities are divided in two categories: those belonging to the Council of universities are divided in two categories: those belonging to the Council of Rectors of Chilean Universities (CRUCH universities),5 also known as Rectors of Chilean Universities (CRUCH universities),5 also known as “traditional universities” and the newer universities known as “private “traditional universities” and the newer universities known as “private universities”.6 Technical training centres can only deliver titles of “Higher universities”.6 Technical training centres can only deliver titles of “Higher Level Technicians”, the professional institutes can only give “Professional Level Technicians”, the professional institutes can only give “Professional Titles” while the universities exclusively have the right to confer “Academic Titles” while the universities exclusively have the right to confer “Academic Degrees”.7 All these institutions are granted autonomy covering academic, Degrees”.7 All these institutions are granted autonomy covering academic, economic and administrative fields after assessment of curricular plans, economic and administrative fields after assessment of curricular plans, graduation mechanisms and quality of education. Three public sources of graduation mechanisms and quality of education. Three public sources of financing, complementary to funds received from other sources, exist: financing, complementary to funds received from other sources, exist: • The Direct Public Contribution, (Aporte Fiscal Directo or AFD) • The Direct Public Contribution, (Aporte Fiscal Directo or AFD) granted exclusively to CRUCH universities (distribution responding granted exclusively to CRUCH universities (distribution responding for 95% to historical standards). for 95% to historical standards). • The Indirect Public Contribution (Aporte Fiscal Indirecto or AFI), a • The Indirect Public Contribution (Aporte Fiscal Indirecto or AFI), a competitive subsidy assigned according to the number of new competitive subsidy assigned according to the number of new students enrolled in the institution that count among the students enrolled in the institution that count among the 27 500 students with the best results in the University Selection Test 27 500 students with the best results in the University Selection Test (PSU).8 (PSU).8 • The Institutional Development Fund (Fondo de Desarollo • The Institutional Development Fund (Fondo de Desarollo Institucional or FDI) targeting CRUCH universities, aiming to Institucional or FDI) targeting CRUCH universities, aiming to improve internal resource assignment. improve internal resource assignment.

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Figure 1.1. OECD population with at least tertiary education (2007)

25-34 55-64 100

0 il o a y n d d e a s n al in rk ry m raz Italy pa ore exic olan Israel reec B S K Japan inlan anad wede ortug Ireland unga Turkey France P Austria Iceland M F G enma Estonia Norway erman C S Belgium P H Slovenia Australia D L E H I C G etherland Switzerland N Luxembourg New Zealand United States nited Kingdo OECD average Czech Republic U Slovak Republic ussian Federatio ussian R

Countries are ranked in descending order of the percentage of 25-34 year-olds who have attained at least tertiary education. The year of reference for Chile is 2002 and for the Russian Federation is 2004.

Note: For technical reasons, these figures use Israel’s official statistics, which include data relating to the Golan Heights, East Jerusalem and Israeli settlements in the West Bank.

Source: OECD (2009b), Education at a Glance: OECD Indicators, OECD Publishing, Paris. 12http://dx.doi.org/10.1787/664024334566

Higher education institutions may also apply for competitive funding from the Programme for the Quality and Equity Improvement of Higher Education (MECESUP), designed to increase the effectiveness of public higher education institutions funding. Currently, MECESUP funding is available to CRUCH universities. In addition, other types of higher

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education institutions have access to certain parts of the programme. education institutions have access to certain parts of the programme. MECESUP programme will be discussed in detail in Chapter 5. MECESUP programme will be discussed in detail in Chapter 5. The number of enrolled students in Chile grew spectacularly between The number of enrolled students in Chile grew spectacularly between 1990 and 2007 (202%). Undergraduate enrolment increased by 197%, post 1990 and 2007 (202%). Undergraduate enrolment increased by 197%, post professional by 268% and postgraduate enrolment by 840% during this professional by 268% and postgraduate enrolment by 840% during this period. In 2007 national enrolment in higher education institutions period. In 2007 national enrolment in higher education institutions comprised 726 285 undergraduate, 7 105 post-professional and comprised 726 285 undergraduate, 7 105 post-professional and 20 153 postgraduate students. This translates into a national coverage of 20 153 postgraduate students. This translates into a national coverage of 38.4% of the population aged 18 to 24 years. In 1990 this percentage was 38.4% of the population aged 18 to 24 years. In 1990 this percentage was only of 14.4%, underlining the huge increase in access to higher education only of 14.4%, underlining the huge increase in access to higher education of this age group. In parallel, the number of higher education institutions of this age group. In parallel, the number of higher education institutions (RSC, 2009) has been seriously reduced between 1990 and 2007, dropping (RSC, 2009) has been seriously reduced between 1990 and 2007, dropping from 248 institutions to 205, a trend affecting mostly technical training from 248 institutions to 205, a trend affecting mostly technical training centres (CFTs) and professional institutes (IPs). Universities maintained centres (CFTs) and professional institutes (IPs). Universities maintained their numbers relatively stable, with a higher number of private universities their numbers relatively stable, with a higher number of private universities in comparison to CRUCH universities. Regarding institutional regimes, in in comparison to CRUCH universities. Regarding institutional regimes, in 2007, 93.4% of universities, 65.9% of professional institutes, and 21% of 2007, 93.4% of universities, 65.9% of professional institutes, and 21% of technical training centres had obtained autonomy. technical training centres had obtained autonomy. The regions with the highest national enrolment shares in 2007 were the The regions with the highest national enrolment shares in 2007 were the Metropolitan region (48.9%), the Bío Bío Region (12.8%) and Valparaíso Metropolitan region (48.9%), the Bío Bío Region (12.8%) and Valparaíso (12.5%). The same year, universities had 67.6% of the total, while (12.5%). The same year, universities had 67.6% of the total, while professional institutes (IPs) and technical training centres (CFTs) professional institutes (IPs) and technical training centres (CFTs) represented 20.8% and 11.6% respectively. Universities concentrating represented 20.8% and 11.6% respectively. Universities concentrating enrolment were the University of Chile (5.8%), Universidad de las Américas enrolment were the University of Chile (5.8%), Universidad de las Américas (5.1%), Andrés Bello University (4.9%), University of Concepción (4.4%), (5.1%), Andrés Bello University (4.9%), University of Concepción (4.4%), Universidad del Mar (4.4%) and the Pontificia Universidad Católica de Universidad del Mar (4.4%) and the Pontificia Universidad Católica de Chile (4.3%). In professional institutes (IPs) enrolment in 2007 was Chile (4.3%). In professional institutes (IPs) enrolment in 2007 was distributed mainly between DUOC-UC (27.6%), the former University distributed mainly between DUOC-UC (27.6%), the former University Department for Peasants and Workers of the Catholic University of Chile, Department for Peasants and Workers of the Catholic University of Chile, now an independent entity, INACAP Professional Institute (15.7%), the now an independent entity, INACAP Professional Institute (15.7%), the National Institute of Professional Training linked to the main Chilean National Institute of Professional Training linked to the main Chilean business association (Confederación de la Producción y del Comercio), and business association (Confederación de la Producción y del Comercio), and AIEP (9.9%), a professional institute linked to the Andrés Bello University. AIEP (9.9%), a professional institute linked to the Andrés Bello University. Within technical training centres (CFTs) student enrolment is concentrated Within technical training centres (CFTs) student enrolment is concentrated in CFT INACAP (27.3%) and CFT Santo Tomás (19.5%). in CFT INACAP (27.3%) and CFT Santo Tomás (19.5%). Availability of financial resources grew rapidly from 1990 to 2007. The Availability of financial resources grew rapidly from 1990 to 2007. The Direct Public Contribution (AFD) resources were multiplied by five while Direct Public Contribution (AFD) resources were multiplied by five while the Indirect Public Contribution (AFI) tripled. Total public contribution to the Indirect Public Contribution (AFI) tripled. Total public contribution to higher education in 2007 (CLP 180 billion) was about eight times the higher education in 2007 (CLP 180 billion) was about eight times the amount spent in 1990. In 1990, five CRUCH universities concentrated amount spent in 1990. In 1990, five CRUCH universities concentrated 60.7% of all AFD resources (53% in 2007). AFI resources are almost 60.7% of all AFD resources (53% in 2007). AFI resources are almost exclusively absorbed by universities (99.1% in 2007), while professional exclusively absorbed by universities (99.1% in 2007), while professional

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institutes got 0.49% and technical training centres 0.12%. Amongst institutes got 0.49% and technical training centres 0.12%. Amongst universities, CRUCH members concentrate most AFI resources. In 1990, six universities, CRUCH members concentrate most AFI resources. In 1990, six of these received 60.1% (77.6% in 2007). The University of Concepción of these received 60.1% (77.6% in 2007). The University of Concepción belongs to the AFD and AFI groups indicated above. Among the private belongs to the AFD and AFI groups indicated above. Among the private universities, a few institutions concentrate AFI resources. In 1990 three universities, a few institutions concentrate AFI resources. In 1990 three institutions received almost 71% of these AFI resources. In 2007 five institutions received almost 71% of these AFI resources. In 2007 five institutions obtained almost 64% of resources. Within professional institutes institutions obtained almost 64% of resources. Within professional institutes and technical training centres, there also exists a high concentration of AFI and technical training centres, there also exists a high concentration of AFI resources amongst a limited number of institutions. resources amongst a limited number of institutions. Higher education institutions’ staff in teaching, research, or extension Higher education institutions’ staff in teaching, research, or extension programmes was estimated by the National Information System of Higher programmes was estimated by the National Information System of Higher Education (SIES) at 47 022 in 2007. Of these, 30.3% had a postgraduate Education (SIES) at 47 022 in 2007. Of these, 30.3% had a postgraduate degree (master or doctorate). The CRUCH universities had 9 455 and the degree (master or doctorate). The CRUCH universities had 9 455 and the private universities 5 747 staff with postgraduate degree. private universities 5 747 staff with postgraduate degree.

1.5 Higher education in the Bío Bío Region 1.5 Higher education in the Bío Bío Region

Following national trends, tertiary education in the Bío Bío Region has Following national trends, tertiary education in the Bío Bío Region has registered significant progress between census years. The population share registered significant progress between census years. The population share with higher education increased from 13% to 21% between 1992 and 2002 with higher education increased from 13% to 21% between 1992 and 2002 in the region, slightly less than the national share for 2008. Also, the in the region, slightly less than the national share for 2008. Also, the socioeconomic background of university students has shown an increasing socioeconomic background of university students has shown an increasing share of those coming from the lowest income quintile (quintile 1). Today, share of those coming from the lowest income quintile (quintile 1). Today, at least 70% of higher education students in the Bío Bío Region have at least 70% of higher education students in the Bío Bío Region have reached an educational attainment level higher than that of their parents. reached an educational attainment level higher than that of their parents. According to the information recovered from the survey relating to higher According to the information recovered from the survey relating to higher education institutions in the Bío Bío Region conducted by the regional self- education institutions in the Bío Bío Region conducted by the regional self- evaluation team, it appears that of the students entering the system in 2008, evaluation team, it appears that of the students entering the system in 2008, 36.5% belonged to the first quintile, 28.1% to the second quintile, 18.2% to 36.5% belonged to the first quintile, 28.1% to the second quintile, 18.2% to the third quintile, 13.1% to the fourth quintile and 4.1% to the fifth quintile. the third quintile, 13.1% to the fourth quintile and 4.1% to the fifth quintile. This means that the higher education system in the Bío Bío Region has an This means that the higher education system in the Bío Bío Region has an important equalising effect in the study opportunities of young people from important equalising effect in the study opportunities of young people from lower income groups. Unfortunately, the data also suggests large number of lower income groups. Unfortunately, the data also suggests large number of students with the financial means to do so are choosing to leave the region students with the financial means to do so are choosing to leave the region for their studies (see Chapter 2). for their studies (see Chapter 2). The Bío Bío Region is the second, behind the Metropolitan Region, in The Bío Bío Region is the second, behind the Metropolitan Region, in terms of higher education offering and student enrolment, which undeniably terms of higher education offering and student enrolment, which undeniably constitutes a strong asset in terms of regional development potential. The constitutes a strong asset in terms of regional development potential. The region concentrated in 2007 12.7% of all the higher education institutions region concentrated in 2007 12.7% of all the higher education institutions headquarters in Chile, 12.8% of the national higher education enrolment, headquarters in Chile, 12.8% of the national higher education enrolment, and 11.9% of the supply of undergraduate programmes. Higher education in and 11.9% of the supply of undergraduate programmes. Higher education in the Bío Bío Region is provided mainly in Concepción and Talcahuano, the Bío Bío Region is provided mainly in Concepción and Talcahuano,

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which concentrates three quarters of the total regional enrolment, but also in which concentrates three quarters of the total regional enrolment, but also in Chillán and Los Ángeles and to a lesser degree in Lota, Cañete and Lebu, Chillán and Los Ángeles and to a lesser degree in Lota, Cañete and Lebu, where some higher education institutions have their seats (see Figure 1.2). where some higher education institutions have their seats (see Figure 1.2). The number of higher education institutions with seats in the region has in The number of higher education institutions with seats in the region has in effect increased rapidly over the last years: from 44 in 2000 to 70 in 2007, effect increased rapidly over the last years: from 44 in 2000 to 70 in 2007, with a high growth rate of professional institutes (IPs) and private with a high growth rate of professional institutes (IPs) and private universities, while the technical training centres (CFTs) share decreased. universities, while the technical training centres (CFTs) share decreased.

Figure 1.2. Enrolment in HEIs in the Bío Bío Region, 2008 Figure 1.2. Enrolment in HEIs in the Bío Bío Region, 2008

Enrolment Enrolment

Chillán 13 170 Chillán 13 170

Talcahuano 7 392 Talcahuano 7 392

Concepción 63 797 Concepción 63 797

Lota 1 139 Lota 1 139

Los Ángeles 6 787 Los Ángeles 6 787

Lebu 100 Lebu 100

Cañete 457 Cañete 457

Source: RSC (Bío Bío’s Regional Steering Committee) (2009), “The Bío Bío Region, Source: RSC (Bío Bío’s Regional Steering Committee) (2009), “The Bío Bío Region, Chile: Self-Evaluation Report”, OECD Reviews of Higher Education in Regional and Chile: Self-Evaluation Report”, OECD Reviews of Higher Education in Regional and City Development, IMHE, www.oecd.org/dataoecd/1/59/43694606.pdf City Development, IMHE, www.oecd.org/dataoecd/1/59/43694606.pdf

The growth of higher education capacity has enabled the region to The growth of higher education capacity has enabled the region to support a four-fold increase in enrolment between 1983 and 2007, from support a four-fold increase in enrolment between 1983 and 2007, from 21 000 to 94 000. However, the share of the Bío Bío Region in national 21 000 to 94 000. However, the share of the Bío Bío Region in national enrolment remained stable at around 12%, as all regions experienced growth enrolment remained stable at around 12%, as all regions experienced growth of higher education over the same period. In 1990 13.7% of the age group of higher education over the same period. In 1990 13.7% of the age group 18-24 years attended undergraduate education and in 2007 the percentage 18-24 years attended undergraduate education and in 2007 the percentage had increased to 39.9%, surpassing the national average by three percentage had increased to 39.9%, surpassing the national average by three percentage

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points (RSC, 2009). Moreover, the evolution shows an accelerating pattern points (RSC, 2009). Moreover, the evolution shows an accelerating pattern over the last decade. Undergraduate enrolment expanded by 82% in over the last decade. Undergraduate enrolment expanded by 82% in universities, 149% in professional institutes (IPs), and 52% in technical universities, 149% in professional institutes (IPs), and 52% in technical training centres (CFTs) between 2000 and 2007. In 2007 the total regional training centres (CFTs) between 2000 and 2007. In 2007 the total regional enrolment was of 96 732, with 62 205 in universities as undergraduate enrolment was of 96 732, with 62 205 in universities as undergraduate students. The increase in enrolment is concentrated around the main students. The increase in enrolment is concentrated around the main knowledge centres: Concepción has 58.8% of technical training centres, knowledge centres: Concepción has 58.8% of technical training centres, 77.9% of professional institutes, and 74.6% of university enrolments, 77.9% of professional institutes, and 74.6% of university enrolments, followed by Chillán and Los Ángeles (20% and 11% of technical training followed by Chillán and Los Ángeles (20% and 11% of technical training centres; 11.8% and 10.3% of professional institutes; 13.3% and 6.4% of centres; 11.8% and 10.3% of professional institutes; 13.3% and 6.4% of university enrolments respectively). university enrolments respectively). Postgraduate enrolment almost doubled between 1999 and 2007, from Postgraduate enrolment almost doubled between 1999 and 2007, from 1 500 to 2 880 students, but remains at low levels. The growth rate was 1 500 to 2 880 students, but remains at low levels. The growth rate was slightly less than the national one, so the regional share of postgraduate slightly less than the national one, so the regional share of postgraduate students decreased from 11.5% to 10.2%. Of all enrolled students in higher students decreased from 11.5% to 10.2%. Of all enrolled students in higher education institutions in the Bío Bío Region, 68% are in universities, 21% in education institutions in the Bío Bío Region, 68% are in universities, 21% in professional institutes (IPs) and 11% in technical training centres (CFTs). professional institutes (IPs) and 11% in technical training centres (CFTs). Most of the students enrolled in the regional higher education Most of the students enrolled in the regional higher education institutions come from the Bío Bío Region, with an average of only 6% of institutions come from the Bío Bío Region, with an average of only 6% of them coming from other regions (RSC, 2009) but a significant number leave them coming from other regions (RSC, 2009) but a significant number leave the region after graduation. The largest proportion attended municipal the region after graduation. The largest proportion attended municipal secondary schools. The composition of student enrolment in CRUCH secondary schools. The composition of student enrolment in CRUCH universities with regional presence deteriorated in terms of the national universities with regional presence deteriorated in terms of the national higher education entrance examination (PSU) scores. The share of incoming higher education entrance examination (PSU) scores. The share of incoming students with average scores higher than 700 points represented 8.6% of students with average scores higher than 700 points represented 8.6% of total entrances in 1998. By 2008 it had fallen to only 4.4%.9 This, and the total entrances in 1998. By 2008 it had fallen to only 4.4%.9 This, and the fact that the higher education institutions have not reformed their education fact that the higher education institutions have not reformed their education delivery to better respond to the needs of the new type of students, may delivery to better respond to the needs of the new type of students, may explain high drop-out rates (around 50% after two years). explain high drop-out rates (around 50% after two years). The number of academic staff, measured in equivalent hours,10 was The number of academic staff, measured in equivalent hours,10 was approximately 3 868 in 2009. Of these 83% was hired by universities, 13% approximately 3 868 in 2009. Of these 83% was hired by universities, 13% by professional institutes (IPs) and 5% by technical training centres (CFTs). by professional institutes (IPs) and 5% by technical training centres (CFTs). The University of Concepción represents 32% of the total, the University of The University of Concepción represents 32% of the total, the University of Bío Bío 12%, the Universidad Católica de la Santísima Concepción 9%, the Bío Bío 12%, the Universidad Católica de la Santísima Concepción 9%, the San Sebastián University 8% and the Universidad del Desarrollo 4%. The San Sebastián University 8% and the Universidad del Desarrollo 4%. The University of Concepción, the University of Bío Bío and the Universidad University of Concepción, the University of Bío Bío and the Universidad Católica de la Santísima Concepción, i.e. the CRUCH universities in the Católica de la Santísima Concepción, i.e. the CRUCH universities in the region, obtain the biggest part of the public funding resources: In 2007, region, obtain the biggest part of the public funding resources: In 2007, these three institutions obtained 10.1% of the Direct Public Contribution, these three institutions obtained 10.1% of the Direct Public Contribution, AFD (CLP 12 438 million), 11.2% of the Indirect Public Contribution, AFI AFD (CLP 12 438 million), 11.2% of the Indirect Public Contribution, AFI (CLP 1 737 million) and 34.2% of the Institutional Development Fund, FDI (CLP 1 737 million) and 34.2% of the Institutional Development Fund, FDI - MECESUP (CLP 1 641 million) on a national basis. - MECESUP (CLP 1 641 million) on a national basis.

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Finally, in terms of research and development (R&D), the Bío Bío Finally, in terms of research and development (R&D), the Bío Bío Region is the second region behind the capital city area on the basis of Region is the second region behind the capital city area on the basis of indicators such as funding, staffing, publications or patents. The research indicators such as funding, staffing, publications or patents. The research scene is dominated by University of Concepción, but other universities are scene is dominated by University of Concepción, but other universities are also strengthening their capacity. High quality research of international also strengthening their capacity. High quality research of international excellence is conducted in different fields such as oceanography and excellence is conducted in different fields such as oceanography and chemistry (University of Concepción), wood industry (University of chemistry (University of Concepción), wood industry (University of Bío Bío), and aquaculture (Universidad Católica de la Santísima Bío Bío), and aquaculture (Universidad Católica de la Santísima Concepción) and it boasts a Centre for Advanced Polymer Research, a joint Concepción) and it boasts a Centre for Advanced Polymer Research, a joint venture between the University of Concepción and the University of venture between the University of Concepción and the University of Bío Bío, with regional and national funding. Bío Bío, with regional and national funding.

1.6 Regional development perspectives 1.6 Regional development perspectives

Following its tradition of strong administrative centralisation, Chile’s Following its tradition of strong administrative centralisation, Chile’s regional policy has been largely defined and implemented in a top down regional policy has been largely defined and implemented in a top down fashion, leaving little leeway for regional initiative. As in OECD countries, fashion, leaving little leeway for regional initiative. As in OECD countries, the links between regional development and decentralisation have been the links between regional development and decentralisation have been increasingly recognised during this decade. This has resulted in policy increasingly recognised during this decade. This has resulted in policy measures since 2006-07 transferring new responsibilities to regional measures since 2006-07 transferring new responsibilities to regional governments: governments: • Funding: over 50% of specific funds (10% including sector funds) • Funding: over 50% of specific funds (10% including sector funds) are now decided in regions are now decided in regions • Definition of regional development strategies • Definition of regional development strategies • Creation of regional development agencies • Creation of regional development agencies Although not specifically targeting regional development, the National Although not specifically targeting regional development, the National Innovation Strategy launched in 2007, provides a framework for innovation Innovation Strategy launched in 2007, provides a framework for innovation and competitiveness policies within regions. This strategy draws up and competitiveness policies within regions. This strategy draws up guidelines until 2020 that include increased R&D spending, improved levels guidelines until 2020 that include increased R&D spending, improved levels of educational attainment and entrepreneurial innovation. The Bío Bío of educational attainment and entrepreneurial innovation. The Bío Bío Region has been in the forefront of these developments. As early as 2001, Region has been in the forefront of these developments. As early as 2001, “Innova Bío Bío” was launched on the basis of an agreement between “Innova Bío Bío” was launched on the basis of an agreement between CORFO (a national public agency linked to the Ministry of Economy) and CORFO (a national public agency linked to the Ministry of Economy) and the regional government, to jointly support actions fostering the regional government, to jointly support actions fostering competitiveness. This unique initiative served as model for what would be competitiveness. This unique initiative served as model for what would be later known as “Innova Chile” (see Chapter 3). Likewise, in 2004, later known as “Innova Chile” (see Chapter 3). Likewise, in 2004, CORECYT (Regional Council for Science and Technology) was created in CORECYT (Regional Council for Science and Technology) was created in the Bío Bío Region, the first such council in the country, based on a public- the Bío Bío Region, the first such council in the country, based on a public- private partnership between regional government, business and universities, private partnership between regional government, business and universities,

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aiming to design regional strategies and policies that promote research and aiming to design regional strategies and policies that promote research and create knowledge networks. create knowledge networks. Within the Regional Development Strategy of the Bío Bío Region for Within the Regional Development Strategy of the Bío Bío Region for 2008-2015 education, science, technology and innovation are amongst the 2008-2015 education, science, technology and innovation are amongst the regionally defined strategic priorities. Strategic Line number three relates to regionally defined strategic priorities. Strategic Line number three relates to “Education of quality at the service of individuals, social mobility, economic “Education of quality at the service of individuals, social mobility, economic competitiveness and democratic participation” and Strategic Line number competitiveness and democratic participation” and Strategic Line number four refers to “Science, technology and innovation for a dynamic and four refers to “Science, technology and innovation for a dynamic and competitive regional economy and social development”. competitive regional economy and social development”. The implementation of these strategic goals is the responsibility of the The implementation of these strategic goals is the responsibility of the regional government. The definition and implementation of the Agenda for regional government. The definition and implementation of the Agenda for Innovation and Regional Competitiveness are carried out by the regional Innovation and Regional Competitiveness are carried out by the regional development agency,11 the board of which comprises representatives of development agency,11 the board of which comprises representatives of regional government, national agencies such as CORFO and business. The regional government, national agencies such as CORFO and business. The agenda is defined and implemented in association with public and private agenda is defined and implemented in association with public and private actors, including higher education institutions and civil society. actors, including higher education institutions and civil society. The three strategic sectors within the agency’s agenda are food and The three strategic sectors within the agency’s agenda are food and agriculture, tourism and higher education, science and technology. These agriculture, tourism and higher education, science and technology. These areas are funded on the basis of PMCs12 (Programmes for Improvement of areas are funded on the basis of PMCs12 (Programmes for Improvement of Competitiveness), now representing at least 10% of the resources of national Competitiveness), now representing at least 10% of the resources of national public agencies involved in productive development, according to the public agencies involved in productive development, according to the budgetary law and to which national agencies such as CORFO and funds budgetary law and to which national agencies such as CORFO and funds such as FNDR (National Fund for Regional Development) or FIC such as FNDR (National Fund for Regional Development) or FIC (Innovation and Competitiveness Fund) contribute alongside regional funds. (Innovation and Competitiveness Fund) contribute alongside regional funds. The PMC for Education, Science and Technology aims to reinforce the The PMC for Education, Science and Technology aims to reinforce the “higher education cluster” in the Bío Bío Region by a series of diverse “higher education cluster” in the Bío Bío Region by a series of diverse actions including the creation of a Centre for the Improvement of Firm actions including the creation of a Centre for the Improvement of Firm Competitiveness, support to aquaculture, the development of a pole for the Competitiveness, support to aquaculture, the development of a pole for the health sector and support to improving social skills among first year health sector and support to improving social skills among first year university students. The OECD Review of Higher Education in Regional university students. The OECD Review of Higher Education in Regional and City Development in the Bío Bío Region is one of the components of and City Development in the Bío Bío Region is one of the components of the Programme for Improvement of Competitiveness. the Programme for Improvement of Competitiveness.

1.7 The role of higher education institutions in regional development 1.7 The role of higher education institutions in regional development

In Chile there is no explicit “third mission” or regional development In Chile there is no explicit “third mission” or regional development task assigned to higher education institutions. Regional engagement is left task assigned to higher education institutions. Regional engagement is left largely to the initiative of the individual institutions. However, some aspects largely to the initiative of the individual institutions. However, some aspects of national policies and programmes support regional orientation. For of national policies and programmes support regional orientation. For example, the national accreditation system involves a strand for outreach example, the national accreditation system involves a strand for outreach (vinculación con el medio) that assesses the institutional policies and (vinculación con el medio) that assesses the institutional policies and

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mechanisms that link the higher education institutions with the local mechanisms that link the higher education institutions with the local businesses and community and also aim at enhancing the academic and businesses and community and also aim at enhancing the academic and professional development of the staff and fulfilling institutional goals. In professional development of the staff and fulfilling institutional goals. In addition, some public funding, most importantly MECESUP (Programme addition, some public funding, most importantly MECESUP (Programme for the Quality and Equity Improvement of Higher Education) includes for the Quality and Equity Improvement of Higher Education) includes requirements, which in practice guarantee that part of the funding will requirements, which in practice guarantee that part of the funding will benefit higher education institutions outside the Metropolitan region and benefit higher education institutions outside the Metropolitan region and indirectly also their regional economies. indirectly also their regional economies. In the Bío Bío Region, a survey was conducted on this subject for the In the Bío Bío Region, a survey was conducted on this subject for the purpose of the regional self-evaluation for the OECD/World Bank Review. purpose of the regional self-evaluation for the OECD/World Bank Review. Amongst the respondents, regional engagement (strong links to the Amongst the respondents, regional engagement (strong links to the community and provision of research of regional pertinence) is considered community and provision of research of regional pertinence) is considered as a priority and mentioned explicitly in the statement of the institution’s as a priority and mentioned explicitly in the statement of the institution’s mission in 2 out of 4 CRUCH universities, in 3 out of 11 professional mission in 2 out of 4 CRUCH universities, in 3 out of 11 professional institutes (IPs) and 4 out of 9 technical training centres (CFTs). Market institutes (IPs) and 4 out of 9 technical training centres (CFTs). Market research, reference to the Regional Development Strategy, studies relating to research, reference to the Regional Development Strategy, studies relating to economic and social needs and labour market analysis are used by higher economic and social needs and labour market analysis are used by higher education institutions to define courses and academic programmes. Specific education institutions to define courses and academic programmes. Specific links with the private sector are in the form of internships for students, links with the private sector are in the form of internships for students, research in topics of regional interest, joint R&D programmes with firms research in topics of regional interest, joint R&D programmes with firms and training programmes for employees. Some institutions also facilitate the and training programmes for employees. Some institutions also facilitate the labour market insertion of graduates by providing support and advice within labour market insertion of graduates by providing support and advice within specialised departments. specialised departments. In spite of these efforts, the Bío Bío Region, the second pole of higher In spite of these efforts, the Bío Bío Region, the second pole of higher learning in Chile behind the Metropolitan area, experiences unemployment learning in Chile behind the Metropolitan area, experiences unemployment rates that are higher than national averages and is a net “expeller” of rates that are higher than national averages and is a net “expeller” of undergraduates to other parts of the country. In 2006, there was a net undergraduates to other parts of the country. In 2006, there was a net migration of university, professional institutes and technical training centres migration of university, professional institutes and technical training centres undergraduates, respectively of more than 2000, close to 1 500 and 1 000 undergraduates, respectively of more than 2000, close to 1 500 and 1 000 (MIDEPLAN, 2006). This seems directly related to the level of wages in the (MIDEPLAN, 2006). This seems directly related to the level of wages in the Bío Bío Region, lower than the national average but also to the lack of Bío Bío Region, lower than the national average but also to the lack of sufficient skilled job opportunities. The situation is quite different for sufficient skilled job opportunities. The situation is quite different for postgraduates who tend to remain in the region that even attracts postgraduates who tend to remain in the region that even attracts postgraduates from other parts of the country. It seems relevant to put this postgraduates from other parts of the country. It seems relevant to put this data in parallel with recent trends in higher education in Bío Bío, as data in parallel with recent trends in higher education in Bío Bío, as presented in Section 1.4 above: in 2007 39.9% of the age group 18-24 years presented in Section 1.4 above: in 2007 39.9% of the age group 18-24 years attended undergraduate education, surpassing the national average by 3%. attended undergraduate education, surpassing the national average by 3%. This means that the increase in higher education coverage contributes, at This means that the increase in higher education coverage contributes, at least in part, under present conditions, to a regional “brain drain”. least in part, under present conditions, to a regional “brain drain”. In this context, important issues arise. How can higher education In this context, important issues arise. How can higher education institutions increase co-operation and better tailor their educational offering institutions increase co-operation and better tailor their educational offering to the needs of the regional economy? Can stronger links with the private to the needs of the regional economy? Can stronger links with the private

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sector be developed to facilitate better integration with the labour market? sector be developed to facilitate better integration with the labour market? Can regional innovation and R&D benefit firms better, in particular small Can regional innovation and R&D benefit firms better, in particular small and medium sized enterprises, with more impact on the local economy? To and medium sized enterprises, with more impact on the local economy? To what degree and how can the regional government steer such a process, in what degree and how can the regional government steer such a process, in close cooperation with higher education institutions and the private sector? close cooperation with higher education institutions and the private sector? The following chapters will seek to develop these issues and provide The following chapters will seek to develop these issues and provide possible answers. possible answers.

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Notes Notes

1. The number of regions in the country, formerly 13, was increased to 15 in 1. The number of regions in the country, formerly 13, was increased to 15 in 2007 by the creation of Los Ríos in the south and Arica-Parinacota in the 2007 by the creation of Los Ríos in the south and Arica-Parinacota in the north. north. 2. Mayors and Communal Councils are elected by universal suffrage. 2. Mayors and Communal Councils are elected by universal suffrage. 3. In spite of this, major public and corporate decisions are still taken in 3. In spite of this, major public and corporate decisions are still taken in Santiago where management of most firms resides, remaining close to Santiago where management of most firms resides, remaining close to government. The Corporation for the Regionalisation of Bío Bío government. The Corporation for the Regionalisation of Bío Bío (Corporación para la Regionalización del Bío Bío, CORBIOBIO), a (Corporación para la Regionalización del Bío Bío, CORBIOBIO), a regional association, is actively pursuing a decentralisation agenda, regional association, is actively pursuing a decentralisation agenda, advocating the sharing or transfer of more decision-making power to advocating the sharing or transfer of more decision-making power to regions in strategic areas of economic development. regions in strategic areas of economic development. 4. Pehuenches and Lafquenches are the other major groups in some parts. 4. Pehuenches and Lafquenches are the other major groups in some parts. 5. The CRUCH is an autonomous public institution, created in 1954 to 5. The CRUCH is an autonomous public institution, created in 1954 to “coordinate the academic activity of its 25 members, protecting their “coordinate the academic activity of its 25 members, protecting their quality and academic excellence, by generation of university and public quality and academic excellence, by generation of university and public policies, defining under and postgraduate training guidelines and policies, defining under and postgraduate training guidelines and promoting scientific, humanistic, and technological research of promoting scientific, humanistic, and technological research of excellence, sustained activities with the community and support to the excellence, sustained activities with the community and support to the country’s culture…” There are three CRUCH universities in Bío Bío: country’s culture…” There are three CRUCH universities in Bío Bío: University of Concepción (UDEC), University of Bío Bío (UBB) and the University of Concepción (UDEC), University of Bío Bío (UBB) and the Universidad Católica de la Santísima Concepción (UCSC). In the Universidad Católica de la Santísima Concepción (UCSC). In the Metropolitan Region there are five, in Valparaiso four. Metropolitan Region there are five, in Valparaiso four. 6. This distinction is misleading as within the CRUCH universities there are 6. This distinction is misleading as within the CRUCH universities there are some that are privately held but the terms “private universities” are some that are privately held but the terms “private universities” are widely used for non CRUCH institutions. widely used for non CRUCH institutions. 7. Academic degrees recognised by law, and exclusively given by 7. Academic degrees recognised by law, and exclusively given by universities: licenciado, magíster and doctor. universities: licenciado, magíster and doctor. 8. The results of this test are requested only by the universities belonging to 8. The results of this test are requested only by the universities belonging to the CRUCH. These universities establish minimum requirements of the CRUCH. These universities establish minimum requirements of performance in this test in order for admittance. performance in this test in order for admittance.

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9. Information from the “Encuesta a Instituciones de Educación Superior en 9. Information from the “Encuesta a Instituciones de Educación Superior en la Región del Bío Bío” (Survey of Higher Education Institutions in the la Región del Bío Bío” (Survey of Higher Education Institutions in the Bío Bío Region) carried out by the Bío Bío’s Research Team in 2009. Bío Bío Region) carried out by the Bío Bío’s Research Team in 2009. 10. Full time plus half time and part-time measured in equivalent hours. 10. Full time plus half time and part-time measured in equivalent hours. 11. The ARIDP (Agencia Regional de Innovación y Desarollo Productivo) is 11. The ARIDP (Agencia Regional de Innovación y Desarollo Productivo) is the regional agency for innovation and productive development, the first the regional agency for innovation and productive development, the first agency in Chile including the term “innovation” in its name. agency in Chile including the term “innovation” in its name. 12. Programme for Improvement of Competitiveness (Programa de 12. Programme for Improvement of Competitiveness (Programa de mejoramiento de competitividad, PMC). mejoramiento de competitividad, PMC).

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References References

Aroca, P. (2004), Migración interregional en Chile: Modelos y resultados Aroca, P. (2004), Migración interregional en Chile: Modelos y resultados 1987-2002 (Inter-regional migration in Chile: Models and results 1987- 1987-2002 (Inter-regional migration in Chile: Models and results 1987- 2002), Notas de Población, CELADE-CEPAL, Year 31, Vol. 78, 2002), Notas de Población, CELADE-CEPAL, Year 31, Vol. 78, pp. 97-154. pp. 97-154. Bruhn, V. and P. Inostroza (1997), Mujer y Desempleo en la VIII Región, Bruhn, V. and P. Inostroza (1997), Mujer y Desempleo en la VIII Región, Informe Económico Regional 26 (Woman and Unemployment in the Informe Económico Regional 26 (Woman and Unemployment in the Bío Bío Region, Regional Economic Report), April, pp. 31-42. Bío Bío Region, Regional Economic Report), April, pp. 31-42. CRUCH (Council of Rectors of Chilean Universities) (2008), CRUCH CRUCH (Council of Rectors of Chilean Universities) (2008), CRUCH website, www.cruch.cl/cruch.html, accessed 28 September 2009. website, www.cruch.cl/cruch.html, accessed 28 September 2009. CSE (National Council of Education) (2008), www.consejo.cl, accessed CSE (National Council of Education) (2008), www.consejo.cl, accessed 28 September 2009. 28 September 2009. Dresdner, J., et al. (2005), Análisis sobre el mercado laboral en Chile a Dresdner, J., et al. (2005), Análisis sobre el mercado laboral en Chile a través del procesamiento de información secundaria disponible. Zona 3: través del procesamiento de información secundaria disponible. Zona 3: Región del Bío Bío (Chile’s labour market analysis through the Región del Bío Bío (Chile’s labour market analysis through the processing of available secondary information. Zone 3. Bío Bío Region) processing of available secondary information. Zone 3. Bío Bío Region) Requested by Chile Califica to the Department of Economics, University Requested by Chile Califica to the Department of Economics, University of Concepción, third progress report, August. of Concepción, third progress report, August. MIDEPLAN (Ministry of Planning and Cooperation, Government of Chile) MIDEPLAN (Ministry of Planning and Cooperation, Government of Chile) (2006), National Survey of Socio-economic characterisation (CASEN), (2006), National Survey of Socio-economic characterisation (CASEN), MIDEPLAN, Santiago. MIDEPLAN, Santiago. MINEDUC (Ministry Education, Government of Chile) (2006), MINEDUC (Ministry Education, Government of Chile) (2006), “Compendium of Higher Education Statistics”, “Compendium of Higher Education Statistics”, www.educacionsuperiorchile.cl/pags/comp_esta_inst.html, accessed www.educacionsuperiorchile.cl/pags/comp_esta_inst.html, accessed 17 January 2010. 17 January 2010. OECD (2009a), Territorial Reviews: Chile, OECD Publishing, Paris, p. 47. OECD (2009a), Territorial Reviews: Chile, OECD Publishing, Paris, p. 47. OECD (2009b), Education at a Glance 2009: OECD Indicators, OECD OECD (2009b), Education at a Glance 2009: OECD Indicators, OECD Publishing, Paris. Publishing, Paris. OECD-World Bank (2009), Tertiary Education in Chile, Reviews of OECD-World Bank (2009), Tertiary Education in Chile, Reviews of National Policies for Education, OECD Publishing, Paris. National Policies for Education, OECD Publishing, Paris.

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Quiroga, M. (2008), “Poor Areas or Poor People: Decomposing Differences Quiroga, M. (2008), “Poor Areas or Poor People: Decomposing Differences in Living Standards and Poverty”, Working paper presented at the 7th in Living Standards and Poverty”, Working paper presented at the 7th Nordic Conference in Development Economics, University of Nordic Conference in Development Economics, University of Stockholm, Stockholm, 16-17 June 2008 Stockholm, Stockholm, 16-17 June 2008 RSC (Bío Bío’s Regional Steering Committee) (2009), “The Bío Bío RSC (Bío Bío’s Regional Steering Committee) (2009), “The Bío Bío Region, Chile: Self-Evaluation Report”, OECD Reviews of Higher Region, Chile: Self-Evaluation Report”, OECD Reviews of Higher Education in Regional and City Development, IMHE, Education in Regional and City Development, IMHE, www.oecd.org/dataoecd/1/59/43694606.pdf www.oecd.org/dataoecd/1/59/43694606.pdf

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Chapter 2: Contribution of higher education to human capital Chapter 2: Contribution of higher education to human capital development development

This chapter examines how effectively higher education institutions in the This chapter examines how effectively higher education institutions in the Bío Bío Region contribute to meeting the social and economic needs of the Bío Bío Region contribute to meeting the social and economic needs of the population in terms of opportunities to study and the relevance of population in terms of opportunities to study and the relevance of qualifications offered. It highlights the linkages between the regional qualifications offered. It highlights the linkages between the regional economy and higher education, as well as recent trends in demography and economy and higher education, as well as recent trends in demography and human capital development. It sheds light on the positive outcomes of human capital development. It sheds light on the positive outcomes of increasing participation rates and widening access to higher education. increasing participation rates and widening access to higher education. Finally, it identifies major challenges facing the regional higher education Finally, it identifies major challenges facing the regional higher education system including high dropout rates, limited alignment of higher education system including high dropout rates, limited alignment of higher education to the regional labour market and the absence of region-wide governance to the regional labour market and the absence of region-wide governance structures and mechanisms to articulate a long term vision of human capital structures and mechanisms to articulate a long term vision of human capital development in the region. The chapter closes with a series of development in the region. The chapter closes with a series of recommendations on how to improve human capital development in the recommendations on how to improve human capital development in the region. region.

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2.1 Regional economic issues 2.1 Regional economic issues

Chile has made impressive economic progress since 1980, with per Chile has made impressive economic progress since 1980, with per capita income in Chile increasing fivefold over that period. During this time, capita income in Chile increasing fivefold over that period. During this time, the regional economy also expanded significantly, but at a rate somewhat the regional economy also expanded significantly, but at a rate somewhat slower than that of the nation as a whole. As a consequence, the Bío Bío slower than that of the nation as a whole. As a consequence, the Bío Bío Region now accounts for a somewhat smaller percentage of total national Region now accounts for a somewhat smaller percentage of total national economic activity than it did in 1980 (9% vs. 13%). economic activity than it did in 1980 (9% vs. 13%). The overall growth pattern of economic activity in the Bío Bío Region The overall growth pattern of economic activity in the Bío Bío Region has been accompanied by significant shifts in activity between sectors. has been accompanied by significant shifts in activity between sectors. These economic shifts have resulted in the dislocation of workers, These economic shifts have resulted in the dislocation of workers, contributing to chronic unemployment in certain sectors. Improving the contributing to chronic unemployment in certain sectors. Improving the effectiveness of systems to move dislocated workers into employment effectiveness of systems to move dislocated workers into employment sectors where growth is occurring is a challenge in all advanced economies sectors where growth is occurring is a challenge in all advanced economies and regions, and the Bío Bío Region is no exception. In the Bío Bío Region, and regions, and the Bío Bío Region is no exception. In the Bío Bío Region, the impact of economic shifts is complicated by the fact that unemployment the impact of economic shifts is complicated by the fact that unemployment is consistently higher in the region than the national average. is consistently higher in the region than the national average. Another factor that has significant impact on higher education’s role in Another factor that has significant impact on higher education’s role in human capital development is the preponderance of small to medium-sized human capital development is the preponderance of small to medium-sized firms in the regional economy. Approximately 82% of firms in the Bío Bío firms in the regional economy. Approximately 82% of firms in the Bío Bío Region have annual sales of less than USD 100 000. Small businesses Region have annual sales of less than USD 100 000. Small businesses present unique human capital needs, and responding to them effectively is a present unique human capital needs, and responding to them effectively is a significant challenge. The large role played by small businesses in the significant challenge. The large role played by small businesses in the regional economy also suggests that the role of entrepreneurship is of regional economy also suggests that the role of entrepreneurship is of critical importance in the Bío Bío Region. The region has a low rate of critical importance in the Bío Bío Region. The region has a low rate of business creation in comparison to other regions of Chile, which suggests business creation in comparison to other regions of Chile, which suggests that finding ways to increase entrepreneurship could be an effective strategy that finding ways to increase entrepreneurship could be an effective strategy for job creation. for job creation. In this context, this chapter examines the following three dimensions to In this context, this chapter examines the following three dimensions to assess the effectiveness and coherence of human capital development assess the effectiveness and coherence of human capital development policies in the Bío Bío Region: policies in the Bío Bío Region: • Widening access: do the existing higher education providers offer • Widening access: do the existing higher education providers offer adequate learning and training opportunities to the local population? adequate learning and training opportunities to the local population? • Demand for skills: are existing higher education institutions and • Demand for skills: are existing higher education institutions and programmes adequately aligned with the skill needs of the local programmes adequately aligned with the skill needs of the local economy and do they support entrepreneurship in the region? economy and do they support entrepreneurship in the region? • Governance framework: is higher education in the Bío Bío Region • Governance framework: is higher education in the Bío Bío Region coordinated and governed in an appropriate way for the needs of the coordinated and governed in an appropriate way for the needs of the region? region?

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2.2 Regional demographics and human capital development 2.2 Regional demographics and human capital development The general demographic profile of the Bío Bío Region is that of a The general demographic profile of the Bío Bío Region is that of a relatively stable population of about 1.9 million. Over the last decade relatively stable population of about 1.9 million. Over the last decade population growth in the region has been significantly less than in Chile as a population growth in the region has been significantly less than in Chile as a whole (7% vs. 21%). Two major factors contribute to the low rate of whole (7% vs. 21%). Two major factors contribute to the low rate of population growth. The first is that the Bío Bío Region is a net exporter of population growth. The first is that the Bío Bío Region is a net exporter of population to other regions of Chile. The second is that birth rates in the population to other regions of Chile. The second is that birth rates in the region are lower than the national average. The combined effect of these region are lower than the national average. The combined effect of these factors is that the population of the Bío Bío Region is both stable and factors is that the population of the Bío Bío Region is both stable and growing somewhat older. This is a consequence of relatively limited growing somewhat older. This is a consequence of relatively limited economic opportunities for young adults, causing significant numbers to economic opportunities for young adults, causing significant numbers to migrate to other regions of Chile. migrate to other regions of Chile. The Bío Bío Region has experienced impressive improvement in The Bío Bío Region has experienced impressive improvement in educational levels in recent decades. The adult literacy rate almost doubled educational levels in recent decades. The adult literacy rate almost doubled in the last decade, and now stands at well over 90%. Likewise, levels of in the last decade, and now stands at well over 90%. Likewise, levels of educational attainment have increased significantly, with 21% having educational attainment have increased significantly, with 21% having completed some form of higher education – an increase from 13% in the last completed some form of higher education – an increase from 13% in the last decade. Educational attainment levels are slightly lower than in the rest of decade. Educational attainment levels are slightly lower than in the rest of Chile due to the older age profile of the population while attainment rates Chile due to the older age profile of the population while attainment rates for young adults are as high as the national average. for young adults are as high as the national average. Higher education participation rates among the 18-24 year old age group Higher education participation rates among the 18-24 year old age group is now over 42%; constituting an increase from less than 14% in 1990. The is now over 42%; constituting an increase from less than 14% in 1990. The rate of higher education participation in the Bío Bío Region is 4 percentage rate of higher education participation in the Bío Bío Region is 4 percentage points higher than the national average. points higher than the national average. Certain demographic characteristics of the region have implications for Certain demographic characteristics of the region have implications for human capital development. The most important of them is poverty: 26% of human capital development. The most important of them is poverty: 26% of the population is classified as poor or indigent, compared to a national the population is classified as poor or indigent, compared to a national average of 17%. An increase in educational attainment – particularly higher average of 17%. An increase in educational attainment – particularly higher education – is associated with reduced poverty rates in Chile and in the education – is associated with reduced poverty rates in Chile and in the region. The rate of poverty in the region has fallen by over 50% in recent region. The rate of poverty in the region has fallen by over 50% in recent decades, with the most significant reduction occurring at the lowest income decades, with the most significant reduction occurring at the lowest income levels. It is likely that further improvements in educational attainment will levels. It is likely that further improvements in educational attainment will also produce further reductions in rates of poverty. also produce further reductions in rates of poverty. The Bío Bío Region is home to one of largest concentrations of The Bío Bío Region is home to one of largest concentrations of indigenous populations in Chile – namely, the Mapuche, Pehuenche, and indigenous populations in Chile – namely, the Mapuche, Pehuenche, and Lafquenche peoples. While there has been some improvement in both the Lafquenche peoples. While there has been some improvement in both the economic and educational conditions of these groups in recent years, they economic and educational conditions of these groups in recent years, they continue to lag non-indigenous Chileans. Improvement in the economic continue to lag non-indigenous Chileans. Improvement in the economic conditions of indigenous peoples is closely tied to the successful conditions of indigenous peoples is closely tied to the successful implementation of rural development strategies, which are discussed in implementation of rural development strategies, which are discussed in Chapter 4. Chapter 4.

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2.3 Higher education participation and expansion of higher education 2.3 Higher education participation and expansion of higher education sector sector The human capital development of the Bío Bío Region is closely aligned The human capital development of the Bío Bío Region is closely aligned with the production of the region’s higher education institutions. Increases with the production of the region’s higher education institutions. Increases in higher education participation and the addition of significant numbers of in higher education participation and the addition of significant numbers of higher education graduates to the regional population have contributed to the higher education graduates to the regional population have contributed to the region’s economic, social and cultural development. The challenge is to region’s economic, social and cultural development. The challenge is to continue and consolidate the rates of growth while better aligning the higher continue and consolidate the rates of growth while better aligning the higher education system to the region’s needs. education system to the region’s needs. Over the past 25 years, higher education enrolment in the Bío Bío Over the past 25 years, higher education enrolment in the Bío Bío Region has more than tripled reaching close to 100 000 students today. In Region has more than tripled reaching close to 100 000 students today. In spite of the reduction in the region’s proportion of the national population spite of the reduction in the region’s proportion of the national population over this period, the Bío Bío Region has maintained its share of total over this period, the Bío Bío Region has maintained its share of total national higher education enrolment. At least 70% of higher education national higher education enrolment. At least 70% of higher education students in the Bío Bío Region have reached an educational attainment level students in the Bío Bío Region have reached an educational attainment level higher than that of their parents. higher than that of their parents. A major factor driving the growth in higher education participation has A major factor driving the growth in higher education participation has been the expansion of the capacity of the regional higher education system; been the expansion of the capacity of the regional higher education system; both through the opening of new institutions and the expansion of existing both through the opening of new institutions and the expansion of existing ones. In the last two decades, the Bío Bío Region saw the creation of several ones. In the last two decades, the Bío Bío Region saw the creation of several new private universities; including San Sebastián University and the new private universities; including San Sebastián University and the Universidad del Desarrollo, both of which have grown into large and Universidad del Desarrollo, both of which have grown into large and respected higher education institutions in a relatively short period of time. respected higher education institutions in a relatively short period of time. Likewise, professional institutes have significantly expanded their role Likewise, professional institutes have significantly expanded their role through growth of institutions such as INACAP and DUOC that have been through growth of institutions such as INACAP and DUOC that have been part of the regional higher education landscape for several decades, as well part of the regional higher education landscape for several decades, as well as the establishment of new institutions. Technical formation centres have as the establishment of new institutions. Technical formation centres have also expanded significantly in recent years, and are beginning to play a more also expanded significantly in recent years, and are beginning to play a more significant role in the regional human capital development system. significant role in the regional human capital development system. Existing higher education institutions in the region have also expanded Existing higher education institutions in the region have also expanded their role significantly in recent years. About 20 years ago, the University of their role significantly in recent years. About 20 years ago, the University of Concepción established the Virginio Gómez Professional Institute, with Concepción established the Virginio Gómez Professional Institute, with branches in Los Ángeles, Chillán and Concepción. Likewise, the University branches in Los Ángeles, Chillán and Concepción. Likewise, the University of Bío Bío and the Universidad Católica de la Santísima Concepción have of Bío Bío and the Universidad Católica de la Santísima Concepción have both seen significant increases in enrolment in recent years. The expansion both seen significant increases in enrolment in recent years. The expansion of capacity has enabled the region to support an increase in enrolment of of capacity has enabled the region to support an increase in enrolment of more than 200% in the last 18 years. Furthermore, the rate at which more than 200% in the last 18 years. Furthermore, the rate at which enrolment is increasing has actually accelerated in more recent years. enrolment is increasing has actually accelerated in more recent years.

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2.4 Expanding opportunity for all income strata, first-generation 2.4 Expanding opportunity for all income strata, first-generation students and rural students students and rural students

While the performance of the Bío Bío Region’s higher education system While the performance of the Bío Bío Region’s higher education system in expanding opportunity is remarkable, significant challenges remain both in expanding opportunity is remarkable, significant challenges remain both to consolidate the gains that have been made and continue progress in an to consolidate the gains that have been made and continue progress in an increasingly competitive situation within the higher education system. The increasingly competitive situation within the higher education system. The rapid increase in higher education participation in recent years has included rapid increase in higher education participation in recent years has included all students from all sectors of the society and has contributed to an all students from all sectors of the society and has contributed to an improvement in overall levels of educational attainment. However, low- improvement in overall levels of educational attainment. However, low- income potential students (quintiles 1 and 2) are less likely to enrol in higher income potential students (quintiles 1 and 2) are less likely to enrol in higher education than those from the upper-income strata of the society. Figure 2.1 education than those from the upper-income strata of the society. Figure 2.1 shows the percentage of each income quintile in the total enrolment of each shows the percentage of each income quintile in the total enrolment of each sector of higher education in Chile: sector of higher education in Chile:

Figure 2.1. Share of enrolment by income quintile and type of institution Figure 2.1. Share of enrolment by income quintile and type of institution In percentage, Chile, 2006 In percentage, Chile, 2006

50 50

45 45

40 40

35 35

30 30

25 25

20 20 Share of enrolment Share Share of enrolment Share 15 15

10 10

5 5

0 0 Quintile 1 Quintile 2 Quintile 3 Quintile 4 Quintile 5 Quintile 1 Quintile 2 Quintile 3 Quintile 4 Quintile 5 CFT 11.4 27.3 26.6 16.7 18.0 CFT 11.4 27.3 26.6 16.7 18.0 IP 10.4 10.5 24.4 32.1 22.6 IP 10.4 10.5 24.4 32.1 22.6 CRUCH 14.0 10.6 17.8 28.2 29.6 CRUCH 14.0 10.6 17.8 28.2 29.6 Private U 5.9 6.1 10.5 31.5 46.1 Private U 5.9 6.1 10.5 31.5 46.1

Source: Bío Bío’s Regional Steering Committee (2009), “The Bío Bío Region, Chile: Source: Bío Bío’s Regional Steering Committee (2009), “The Bío Bío Region, Chile: Self-Evaluation Report”, OECD Reviews of Higher Education in Regional and City Self-Evaluation Report”, OECD Reviews of Higher Education in Regional and City Development, IMHE, www.oecd.org/dataoecd/1/59/43694606.pdf Development, IMHE, www.oecd.org/dataoecd/1/59/43694606.pdf

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The data shows that students from lower socio-economic backgrounds The data shows that students from lower socio-economic backgrounds are more likely to enrol in higher education in the Bío Bío Region, are more likely to enrol in higher education in the Bío Bío Region, particularly in the traditional CRUCH and private universities. particularly in the traditional CRUCH and private universities. There is some evidence that higher education in the Bío Bío Region is There is some evidence that higher education in the Bío Bío Region is enrolling more students from the lower socio-economic strata of the region. enrolling more students from the lower socio-economic strata of the region. Within the Bío Bío region, higher education therefore playing a “levelling” Within the Bío Bío region, higher education therefore playing a “levelling” effect in terms of income inequality related to higher education enrolment. effect in terms of income inequality related to higher education enrolment. Figure 2.2 makes this relationship clear: Figure 2.2 makes this relationship clear:

Figure 2.2. Share of new enrolment, by income quintile Figure 2.2. Share of new enrolment, by income quintile In percentage, Bío Bío Region, 2008 In percentage, Bío Bío Region, 2008

50 50 45 45 40 40 35 35 36.5 36.5 30 30 25 28.1 25 28.1 20 20

% new % new enrolment 15 18.2 % new enrolment 15 18.2 10 13.1 10 13.1 5 5 4.1 4.1 0 0 Quintile 1 Quintile 2 Quintile 3 Quintile 4 Quintile 5 Quintile 1 Quintile 2 Quintile 3 Quintile 4 Quintile 5

Similar patterns of enrolment are seen in all types of higher education Similar patterns of enrolment are seen in all types of higher education institutions in the region, including CRUCH universities. Unfortunately, the institutions in the region, including CRUCH universities. Unfortunately, the data also suggests that a large number of students with the financial means data also suggests that a large number of students with the financial means are choosing to leave the region for their studies. This pattern will contribute are choosing to leave the region for their studies. This pattern will contribute to a “brain drain” from the region if these students do not return to the to a “brain drain” from the region if these students do not return to the region upon graduation. region upon graduation. A significant proportion of potential low income students come from A significant proportion of potential low income students come from rural areas where higher education is not easily available and the quality of rural areas where higher education is not easily available and the quality of

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preparation and support services is likely to be lower. Expansion of the role preparation and support services is likely to be lower. Expansion of the role of technical formation centres is one strategy for improving access to higher of technical formation centres is one strategy for improving access to higher education among rural populations, as well as extending the benefits of education among rural populations, as well as extending the benefits of higher education to rural communities. Many higher education institutions higher education to rural communities. Many higher education institutions are already addressing the human capital development needs of rural are already addressing the human capital development needs of rural communities. These efforts should be stepped up and good practices should communities. These efforts should be stepped up and good practices should be disseminated more widely. At the same time it is necessary to be disseminated more widely. At the same time it is necessary to acknowledge that educating rural students is likely to contribute to brain acknowledge that educating rural students is likely to contribute to brain drain if other efforts are not made to address the challenges in the rural drain if other efforts are not made to address the challenges in the rural areas. These issues will be discussed in Chapter 4. areas. These issues will be discussed in Chapter 4. Moreover, as noted in the OECD/World Bank Review of Chilean Moreover, as noted in the OECD/World Bank Review of Chilean Tertiary Education (2009), access and equity issues are not limited to just Tertiary Education (2009), access and equity issues are not limited to just participation; they involve the ratios of aspirants to admitted students by participation; they involve the ratios of aspirants to admitted students by income group, the relative success of male versus female students, income group, the relative success of male versus female students, participation of students by income and type of institution, and the participation of students by income and type of institution, and the distribution of student aid. The OECD/World Bank team encourages the distribution of student aid. The OECD/World Bank team encourages the higher education institutions in the region to continue their efforts to address higher education institutions in the region to continue their efforts to address the equity and access issues. the equity and access issues.

2.5 Increasing participation by adults 2.5 Increasing participation by adults

The growing economic necessity to complete some form of higher The growing economic necessity to complete some form of higher education in order to fully participate in the economic, social, and cultural education in order to fully participate in the economic, social, and cultural life at the national, regional and local levels applies equally to working age life at the national, regional and local levels applies equally to working age adults as it does to younger students. Due to rapidly changing skill adults as it does to younger students. Due to rapidly changing skill requirements in working life, lifelong learning, skills upgrading and re- requirements in working life, lifelong learning, skills upgrading and re- skilling are becoming increasingly important. The importance of skills skilling are becoming increasingly important. The importance of skills upgrading is felt most urgently at the local and regional level. Upgrading the upgrading is felt most urgently at the local and regional level. Upgrading the skills of the adult population is likely to have a more direct effect on the skills of the adult population is likely to have a more direct effect on the region’s economic performance since adult learners are generally less region’s economic performance since adult learners are generally less mobile than younger students due to family commitments. For non- mobile than younger students due to family commitments. For non- traditional learners, who often combine work and study, and their traditional learners, who often combine work and study, and their employers, flexible ways of provision need to be in place through work- employers, flexible ways of provision need to be in place through work- based, e-learning and distance education. In addition, attendance on the based, e-learning and distance education. In addition, attendance on the basis of non-formal and informal learning should be allowed (OECD, 2007; basis of non-formal and informal learning should be allowed (OECD, 2007; 2008). 2008). While the higher education institutions in the Bío Bío Region are aware While the higher education institutions in the Bío Bío Region are aware of the needs of adults and have some programmes in place for them, limited of the needs of adults and have some programmes in place for them, limited hard data is available to understand the needs of this population or the hard data is available to understand the needs of this population or the efficacy of higher education in meeting them. While in general, the higher efficacy of higher education in meeting them. While in general, the higher education institutions in the region are more oriented to meeting the needs of education institutions in the region are more oriented to meeting the needs of

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traditional students, there are encouraging signs that the situation is slowly traditional students, there are encouraging signs that the situation is slowly changing. changing. Most institutions identified continuing education programmes as their Most institutions identified continuing education programmes as their primary mechanism for meeting the needs of adults. By making courses primary mechanism for meeting the needs of adults. By making courses available to non-traditional students at night or on weekends, these available to non-traditional students at night or on weekends, these programmes may offer a significant benefit for adult learners. It is unknown, programmes may offer a significant benefit for adult learners. It is unknown, however, whether the availability of courses and programmes is sufficient to however, whether the availability of courses and programmes is sufficient to meet the needs and demands of adult learners. Other approaches that have meet the needs and demands of adult learners. Other approaches that have demonstrated effectiveness with adults, such as work-based programmes demonstrated effectiveness with adults, such as work-based programmes and on-line courses targeted to adults were of limited evidence. However, and on-line courses targeted to adults were of limited evidence. However, the development of a special admissions process for adult students at the the development of a special admissions process for adult students at the University of Concepción is an example of how processes and systems can University of Concepción is an example of how processes and systems can be adapted to better meet the needs of adult learners. be adapted to better meet the needs of adult learners. An increasing number of potential students have family obligations that An increasing number of potential students have family obligations that present a severe challenge to their ability to enrol and persist in higher present a severe challenge to their ability to enrol and persist in higher education. Large numbers of current and potential students are responsible education. Large numbers of current and potential students are responsible for small children, and cannot afford day care that could allow them to for small children, and cannot afford day care that could allow them to attend higher education. Generally, these potential students either do not attend higher education. Generally, these potential students either do not apply to or attend institutions of higher education, even though many of apply to or attend institutions of higher education, even though many of them would choose to do so if a viable option existed. them would choose to do so if a viable option existed. An excellent example of how higher education can successfully address An excellent example of how higher education can successfully address this issue is the Day Care Centre operated by the School of Education at this issue is the Day Care Centre operated by the School of Education at University of Concepción. It offers high quality day care for the children of University of Concepción. It offers high quality day care for the children of students right in the centre of the campus, so students can easily drop off students right in the centre of the campus, so students can easily drop off and pick up their children, and also check on them during the day if and pick up their children, and also check on them during the day if necessary. In addition, the Centre offers students in the University’s School necessary. In addition, the Centre offers students in the University’s School of Education opportunities to gain direct experience in working with of Education opportunities to gain direct experience in working with children. This type of synergy is a result of addressing the social needs of children. This type of synergy is a result of addressing the social needs of students in creative ways. The Centre is an excellent model that should be students in creative ways. The Centre is an excellent model that should be extended in scale and expanded throughout the region. Currently, the extended in scale and expanded throughout the region. Currently, the programme is the exception rather than the rule. The Centre at the programme is the exception rather than the rule. The Centre at the University of Concepción is not large enough to meet the demand from University of Concepción is not large enough to meet the demand from current students (the Centre has a lengthy waiting list), much less all those current students (the Centre has a lengthy waiting list), much less all those who might be able to enrol in higher education if such a service were widely who might be able to enrol in higher education if such a service were widely available. available.

2.6 Improving retention and completion in higher education 2.6 Improving retention and completion in higher education

The rapid increase in higher education enrolment has contributed to The rapid increase in higher education enrolment has contributed to relatively high rates of attrition from higher education, as students drop out relatively high rates of attrition from higher education, as students drop out rather than complete a degree. Throughout Chile, 58% of all students drop rather than complete a degree. Throughout Chile, 58% of all students drop

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out before completing a programme of studies leading to a degree, in out before completing a programme of studies leading to a degree, in comparison with the OECD average of 29.6 (OECD, 2009a). This problem comparison with the OECD average of 29.6 (OECD, 2009a). This problem is potentially solvable, which would result in a significant increase in the is potentially solvable, which would result in a significant increase in the real benefits for both students and the society. real benefits for both students and the society. The reasons for high drop-out rates are manifold. The Review Team The reasons for high drop-out rates are manifold. The Review Team heard evidence of i) insufficient levels of preparation of incoming students; heard evidence of i) insufficient levels of preparation of incoming students; ii) inadequacies in the current university admissions systems that do not ii) inadequacies in the current university admissions systems that do not reflect the needs of students, society or higher education institutions reflect the needs of students, society or higher education institutions themselves; iii) overextended degree programmes, iv) inflexible curricula; themselves; iii) overextended degree programmes, iv) inflexible curricula; and v) outdated classroom practices. There was also evidence that some and v) outdated classroom practices. There was also evidence that some faculty see high dropout rates as evidence of quality rather than as a sign of faculty see high dropout rates as evidence of quality rather than as a sign of the failure of higher education to address student needs and provide quality the failure of higher education to address student needs and provide quality education. education. One of the challenges to reducing higher education drop-out rates is One of the challenges to reducing higher education drop-out rates is assuring that students are adequately prepared for the academic challenges assuring that students are adequately prepared for the academic challenges of higher education studies. A recurrent concern among faculty and of higher education studies. A recurrent concern among faculty and administrators was the deficient social skills and low competence level of administrators was the deficient social skills and low competence level of students, due to quality and equity problems in secondary education. The students, due to quality and equity problems in secondary education. The elementary and secondary schools of the region (and Chile as a whole) were elementary and secondary schools of the region (and Chile as a whole) were cited as inadequately preparing students for higher education. This appears cited as inadequately preparing students for higher education. This appears to be a particular problem in the case of public schools, from which an to be a particular problem in the case of public schools, from which an increasing number of higher education students are being drawn. increasing number of higher education students are being drawn. Educational reform at the secondary school level is necessary in order to Educational reform at the secondary school level is necessary in order to align secondary school graduation standards with higher education align secondary school graduation standards with higher education admission standards, to establish programmes to assure that all primary and admission standards, to establish programmes to assure that all primary and secondary students (and their families) get the information they need to secondary students (and their families) get the information they need to prepare for higher education and to improve the preparation of teachers in prepare for higher education and to improve the preparation of teachers in the schools. Overcoming quality and equity gaps in secondary schools is not the schools. Overcoming quality and equity gaps in secondary schools is not the direct responsibility of local higher education institutions. The primary the direct responsibility of local higher education institutions. The primary responsibility lies with school authorities to work towards improving the responsibility lies with school authorities to work towards improving the quality of education in Chile. They will need to address the challenges in a quality of education in Chile. They will need to address the challenges in a comprehensive way and mobilise appropriate levels of financial resources to comprehensive way and mobilise appropriate levels of financial resources to support public education. support public education. At the same time, however, higher education institutions can and do At the same time, however, higher education institutions can and do more to reach out to local schools to raise aspirations and academic more to reach out to local schools to raise aspirations and academic performance of students and to improve the quality of teaching. Promising performance of students and to improve the quality of teaching. Promising work to address this need has been supported by national level funding. In work to address this need has been supported by national level funding. In 2006, the Ministry of Education in Chile identified 768 out of 1 199 public 2006, the Ministry of Education in Chile identified 768 out of 1 199 public secondary schools that required a comprehensive strategy to improve secondary schools that required a comprehensive strategy to improve students’ learning outcomes. These secondary schools serve students from students’ learning outcomes. These secondary schools serve students from low-income families and the parents have low educational attainment. The low-income families and the parents have low educational attainment. The

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schools also have high drop-out and repetition rates. To begin the first phase schools also have high drop-out and repetition rates. To begin the first phase of intervention the Ministry prioritised 120 schools and provided funding to of intervention the Ministry prioritised 120 schools and provided funding to higher education institutions to support schools (MINEDUC, 2006). higher education institutions to support schools (MINEDUC, 2006).

Box 2.1. The San Sebastián University and vulnerable schools Box 2.1. The San Sebastián University and vulnerable schools

The San Sebastián University (USS) is a private, multi-campus university The San Sebastián University (USS) is a private, multi-campus university founded in 1989. The University has nearly 17 000 students enrolled in founded in 1989. The University has nearly 17 000 students enrolled in 33 programmes and 2 220 faculty members. In Concepción, the university has 33 programmes and 2 220 faculty members. In Concepción, the university has three campuses serving about 8 900 students in 32 programmes in study fields three campuses serving about 8 900 students in 32 programmes in study fields ranging from health sciences, medicine, veterinary sciences to education. ranging from health sciences, medicine, veterinary sciences to education. In 2007, based on the prioritisation of vulnerable schools, the Ministry of In 2007, based on the prioritisation of vulnerable schools, the Ministry of Education in Chile concluded an agreement with the San Sebastián University’s Education in Chile concluded an agreement with the San Sebastián University’s Faculty of Education to support five prioritised secondary schools in the province Faculty of Education to support five prioritised secondary schools in the province of Concepción for a 3-year period. The university’s intervention consisted of of Concepción for a 3-year period. The university’s intervention consisted of i) identification of pedagogical methodologies used by teachers, ii) development i) identification of pedagogical methodologies used by teachers, ii) development of teachers’ pedagogical competencies and iii) enhancement of schools’ of teachers’ pedagogical competencies and iii) enhancement of schools’ management and leadership. University faculty and students have collaborated management and leadership. University faculty and students have collaborated with external experts in pedagogy to achieve these goals. with external experts in pedagogy to achieve these goals. The actions usually include three stages: i) analysis of the situation; The actions usually include three stages: i) analysis of the situation; ii) training, for example in terms of learning outcomes planning, conflict ii) training, for example in terms of learning outcomes planning, conflict management, mediation and personal development; and iii) improvement of management, mediation and personal development; and iii) improvement of processes. To reinforce the activities, the University has involved also parents of processes. To reinforce the activities, the University has involved also parents of the students in some of the learning-related activities. Challenges in the the students in some of the learning-related activities. Challenges in the implementation of the programme have been associated with persuading schools’ implementation of the programme have been associated with persuading schools’ leaders and teachers to change classroom methodologies and practices and the use leaders and teachers to change classroom methodologies and practices and the use new technologies. new technologies. University students have also supported the preparatory training for the Chile’s University students have also supported the preparatory training for the Chile’s national test for admission to universities (PSU), reinforcing math and language national test for admission to universities (PSU), reinforcing math and language skills. The Ministry of Education supported the university with USD 267 500 for skills. The Ministry of Education supported the university with USD 267 500 for the 3-year intervention, while the University’s Office for Student Affairs and the the 3-year intervention, while the University’s Office for Student Affairs and the Faculty of Education provided match funding. Faculty of Education provided match funding.

In the Bío Bío Region, the problem of insufficient preparation is In the Bío Bío Region, the problem of insufficient preparation is recognised by most higher education institutions in the region and an recognised by most higher education institutions in the region and an impressive number of school outreach programmes at individual higher impressive number of school outreach programmes at individual higher education institutions and their departments are already in operation education institutions and their departments are already in operation supported by the national funding (see Box 2.1). There is, however, little supported by the national funding (see Box 2.1). There is, however, little evidence of collaboration between higher education institutions in the region evidence of collaboration between higher education institutions in the region to address this challenge. The OECD/World Bank Review Team encourages to address this challenge. The OECD/World Bank Review Team encourages all higher education institutions to step up their important outreach efforts all higher education institutions to step up their important outreach efforts and share good practices among themselves in a systematic manner. and share good practices among themselves in a systematic manner.

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Remedial courses in higher education institutions are another type of Remedial courses in higher education institutions are another type of response of higher education institutions to the challenges posed by response of higher education institutions to the challenges posed by inadequate preparation. In some cases higher education institutions have inadequate preparation. In some cases higher education institutions have moved toward a comprehensive institution-wide response addressing social, moved toward a comprehensive institution-wide response addressing social, financial and learning difficulties of their students. Some higher education financial and learning difficulties of their students. Some higher education institutions have also taken steps to modernise their teaching and learning institutions have also taken steps to modernise their teaching and learning methods and to address the overextended degree programmes. These efforts methods and to address the overextended degree programmes. These efforts should be stepped up and widely disseminated throughout the higher should be stepped up and widely disseminated throughout the higher education system. education system.

Box 2.2. El Paso, TX: widening access to higher education Box 2.2. El Paso, TX: widening access to higher education

The ability of the higher education institutions in the region to widen access The ability of the higher education institutions in the region to widen access and increase educational attainment depends significantly on preparation in and increase educational attainment depends significantly on preparation in primary and secondary education. The El Paso Collaborative is a long term multi- primary and secondary education. The El Paso Collaborative is a long term multi- stakeholder public-private effort to improve educational attainment and retention stakeholder public-private effort to improve educational attainment and retention from the first year in school through the college or university degree programme. from the first year in school through the college or university degree programme. The Collaborative includes membership from the business community, all levels The Collaborative includes membership from the business community, all levels of educational institutions (from primary through University), the public sector of educational institutions (from primary through University), the public sector and a non-profit organisation concerned with improving educational achievement. and a non-profit organisation concerned with improving educational achievement. The goal of the collaboration, which started in 1991, was to make systematic The goal of the collaboration, which started in 1991, was to make systematic changes in educational policy and curriculum in all of the twelve El Paso School changes in educational policy and curriculum in all of the twelve El Paso School Districts that would produce measurable results in performance in key areas of Districts that would produce measurable results in performance in key areas of the curriculum. A specific goal of the El Paso Collaborative for Academic the curriculum. A specific goal of the El Paso Collaborative for Academic Excellence was to decrease the achievement gap across ethnic and socioeconomic Excellence was to decrease the achievement gap across ethnic and socioeconomic groups. groups. The approach of the collaborative has been measurably successful, particularly The approach of the collaborative has been measurably successful, particularly in improving the performance of Hispanic students, a group with the largest in improving the performance of Hispanic students, a group with the largest proportion of low-income students and for whom English is usually a second proportion of low-income students and for whom English is usually a second language. Test results for Hispanic students in the critical 11th grade, (a year language. Test results for Hispanic students in the critical 11th grade, (a year before college entry) show improvement in performance from the 33rd percentile before college entry) show improvement in performance from the 33rd percentile in 1993 to the 72nd percentile in 2008. Hispanic students show increases in in 1993 to the 72nd percentile in 2008. Hispanic students show increases in enrolment in science, technology, engineering and mathematics related enrolment in science, technology, engineering and mathematics related curriculum over the period of Collaborative activities and a graduation rate of curriculum over the period of Collaborative activities and a graduation rate of 76.7%, which is the highest among school districts in the State of Texas. Given 76.7%, which is the highest among school districts in the State of Texas. Given that Hispanic students make up 89% of the student population in the El Paso that Hispanic students make up 89% of the student population in the El Paso school district, improvement in their educational achievement has had a school district, improvement in their educational achievement has had a significant effect on the overall performance of the school districts. significant effect on the overall performance of the school districts.

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Box 2.2. El Paso, TX: widening access to higher education (continued) Box 2.2. El Paso, TX: widening access to higher education (continued)

Higher education institutions can benefit from the efforts to improve college Higher education institutions can benefit from the efforts to improve college readiness in the primary, secondary institutes. El Paso Community College, with readiness in the primary, secondary institutes. El Paso Community College, with five campuses in the region, is critical to the effort of widening access to higher five campuses in the region, is critical to the effort of widening access to higher education. The community college system is the primary entry point to tertiary education. The community college system is the primary entry point to tertiary education for low-income students who are unable to pay for a four-year degree education for low-income students who are unable to pay for a four-year degree programme. As a result of direct efforts to widen access and increase educational programme. As a result of direct efforts to widen access and increase educational attainment, e.g. by obtaining grant funding to improve remedial education, attainment, e.g. by obtaining grant funding to improve remedial education, enrolment rates increased by 35% between 2002 and 2008 and graduation rates enrolment rates increased by 35% between 2002 and 2008 and graduation rates increased by 92% during the same period. Programmes to increase college increased by 92% during the same period. Programmes to increase college readiness and thus potential success in a four year degree program have resulted readiness and thus potential success in a four year degree program have resulted in significant improvements in math, reading and writing measures, with, for in significant improvements in math, reading and writing measures, with, for example, the percentage of students assessed as ready for college with respect to example, the percentage of students assessed as ready for college with respect to writing skills, improving from 35% in 2003 to 74% in 2008. One of the most writing skills, improving from 35% in 2003 to 74% in 2008. One of the most innovative programmes undertaken at El Paso Community College to improve innovative programmes undertaken at El Paso Community College to improve educational attainment and to increase the knowledge base of the region is the educational attainment and to increase the knowledge base of the region is the Early College High School Programme. This programme enables high school Early College High School Programme. This programme enables high school students to obtain credit for College level courses and thus to shorten the time and students to obtain credit for College level courses and thus to shorten the time and money needed to complete a college degree. money needed to complete a college degree. The University of Texas at El Paso (UTEP) has undertaken its own The University of Texas at El Paso (UTEP) has undertaken its own programmes to widen access and improve student performance and completion programmes to widen access and improve student performance and completion rates. The relationship between the broadened community programmes to rates. The relationship between the broadened community programmes to improve college readiness and the ability of the University of Texas at El Paso to improve college readiness and the ability of the University of Texas at El Paso to respond are integrally related because over 70% of the UTEP students come from respond are integrally related because over 70% of the UTEP students come from within the region. UTEP has increased its enrolment by approximately 40% since within the region. UTEP has increased its enrolment by approximately 40% since the late 1990s and the vast majority of the increase has been with Hispanic the late 1990s and the vast majority of the increase has been with Hispanic students, who have increased from below 40% of the student population to over students, who have increased from below 40% of the student population to over 75%. Degree award has risen from approximately 2 000 in the late 1990s to 75%. Degree award has risen from approximately 2 000 in the late 1990s to 3 500 in 2008. Attesting to a commitment to serve the bi-national and bi-cultural 3 500 in 2008. Attesting to a commitment to serve the bi-national and bi-cultural region, approximately 10% of UTEP’s students are Mexican citizens who cross region, approximately 10% of UTEP’s students are Mexican citizens who cross the border every day to attend classes at the University. the border every day to attend classes at the University. The University of Texas at El Paso has also taken specific steps to make The University of Texas at El Paso has also taken specific steps to make college affordable and accessible to students who almost universally have to work college affordable and accessible to students who almost universally have to work and study. It has undertaken programmes to change course scheduling, enable and study. It has undertaken programmes to change course scheduling, enable students to borrow books needed for courses during the semester, and pay for students to borrow books needed for courses during the semester, and pay for their education as they acquire the funds to do so. These programmes are their education as they acquire the funds to do so. These programmes are particularly important given the low-income levels of the college age population particularly important given the low-income levels of the college age population and their households, their lack of familial experience with higher education, their and their households, their lack of familial experience with higher education, their need to work while learning and their propensity to avoid borrowing to invest in need to work while learning and their propensity to avoid borrowing to invest in higher education. higher education.

Source: OECD (forthcoming), Review of Higher Education in Regional and City Source: OECD (forthcoming), Review of Higher Education in Regional and City Development. Peer Review Report for the Paso del Norte Region Development. Peer Review Report for the Paso del Norte Region

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Data about higher education dropout rates and academic progress of Data about higher education dropout rates and academic progress of higher education students is lacking at the regional and institutional level. higher education students is lacking at the regional and institutional level. As a part of the MECESUP’s Performance Agreement Programme, which As a part of the MECESUP’s Performance Agreement Programme, which provides support from the national government if lower dropout rates are provides support from the national government if lower dropout rates are reached, the University of Bío Bío has begun collecting and analysing its reached, the University of Bío Bío has begun collecting and analysing its own data to better understand and address the dropout problem. The own data to better understand and address the dropout problem. The university reports that they have reduced the dropout rate from 48% in 2008 university reports that they have reduced the dropout rate from 48% in 2008 to 37% in 2009 year, compared to the national rate of 58%. To focus their to 37% in 2009 year, compared to the national rate of 58%. To focus their efforts, the university has set a target dropout rate of 24%. The MECESUP efforts, the university has set a target dropout rate of 24%. The MECESUP programme and the Performance Agreement of the University of Bío Bío programme and the Performance Agreement of the University of Bío Bío are discussed in detail in Chapter 5. are discussed in detail in Chapter 5. Improving retention and completion in higher education will also Improving retention and completion in higher education will also require improved pathways between schools and higher education require improved pathways between schools and higher education institutions and among higher education institutions. In this respect, there institutions and among higher education institutions. In this respect, there are international examples that Bío Bío Region could use involving are international examples that Bío Bío Region could use involving collaboration across institutions and education sectors. El Paso in Texas, US collaboration across institutions and education sectors. El Paso in Texas, US has a high concentration of low-income people, many with very low has a high concentration of low-income people, many with very low educational attainment. When children from these households enter school educational attainment. When children from these households enter school they face significant challenges in: i) remaining in school; ii) obtaining the they face significant challenges in: i) remaining in school; ii) obtaining the skills necessary to increase their employability and productivity; and skills necessary to increase their employability and productivity; and iii) obtaining a college degree. The higher education institutions in El Paso iii) obtaining a college degree. The higher education institutions in El Paso have addressed these issues in a comprehensive way and achieved notable have addressed these issues in a comprehensive way and achieved notable success in widening access to higher education and in educational success in widening access to higher education and in educational attainment. Underlying individual institutional efforts is the College attainment. Underlying individual institutional efforts is the College Readiness Consortium, which connects efforts in all primary and secondary Readiness Consortium, which connects efforts in all primary and secondary education institutions (school districts) in the region to college level education institutions (school districts) in the region to college level programmes to increase access and attainment. programmes to increase access and attainment.

2.7 Alignment of higher education to regional labour markets 2.7 Alignment of higher education to regional labour markets

Due the continuous outmigration of talent from the region, the question Due the continuous outmigration of talent from the region, the question of alignment of higher education to regional employment deserves attention. of alignment of higher education to regional employment deserves attention. The increasing inter-dependence between regional economies and higher The increasing inter-dependence between regional economies and higher education systems means that their alignment is an issue of increasing education systems means that their alignment is an issue of increasing importance. So far, this issue has received only limited attention in the importance. So far, this issue has received only limited attention in the Bío Bío Region. Bío Bío Region. Given the analytical difficulties and a lack of robust data, what Given the analytical difficulties and a lack of robust data, what conclusions can be drawn about the alignment of higher education in the conclusions can be drawn about the alignment of higher education in the Bío Bío Region to regional labour markets? Based on the materials reviewed Bío Bío Region to regional labour markets? Based on the materials reviewed by the Review Team and discussions with regional authorities, business by the Review Team and discussions with regional authorities, business leadership and higher education, the following conclusions can be made: leadership and higher education, the following conclusions can be made:

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• There is limited capacity to identify labour market needs and trends • There is limited capacity to identify labour market needs and trends on a regional basis. Consequently, most evidence about labour on a regional basis. Consequently, most evidence about labour markets is anecdotal and/or addresses tightly focused industry markets is anecdotal and/or addresses tightly focused industry sectors (e.g. agriculture) or specific companies. sectors (e.g. agriculture) or specific companies. • There is a lack of robust data on labour markets. Data is lacking • There is a lack of robust data on labour markets. Data is lacking from the national, regional and local levels. There is also a lack of from the national, regional and local levels. There is also a lack of good data about student labour market outcomes (e.g. employment good data about student labour market outcomes (e.g. employment after graduation, salary and career paths) and graduate destinations. after graduation, salary and career paths) and graduate destinations. • Many, if not most, of the existing university degree programmes • Many, if not most, of the existing university degree programmes cannot be aligned with specific occupational clusters in any cannot be aligned with specific occupational clusters in any meaningful way. Curricula remain focused on career-based rather meaningful way. Curricula remain focused on career-based rather than competency-based. There is a lack of participation of than competency-based. There is a lack of participation of employers in curriculum and course design. employers in curriculum and course design. • Several large higher education institutions in the Bío Bío Region are • Several large higher education institutions in the Bío Bío Region are primarily focused on national labour markets rather than regional primarily focused on national labour markets rather than regional ones. ones. • Available evidence suggests that there is a stronger alignment • Available evidence suggests that there is a stronger alignment between higher education institutions and labour market needs in the between higher education institutions and labour market needs in the larger metropolitan areas of the region, particularly Concepción. larger metropolitan areas of the region, particularly Concepción. Higher education graduates in the Bío Bío Region earn less than their Higher education graduates in the Bío Bío Region earn less than their counterparts in other parts of Chile. This may suggest that the region is over- counterparts in other parts of Chile. This may suggest that the region is over- supplied (on a relative basis) with higher education graduates. However, it supplied (on a relative basis) with higher education graduates. However, it may equally suggest a misalignment between higher education offerings and may equally suggest a misalignment between higher education offerings and regional labour market needs and between supply and demand of higher regional labour market needs and between supply and demand of higher education graduates. education graduates. The general conclusion that can be drawn from the available evidence is The general conclusion that can be drawn from the available evidence is that not enough robust data is available about regional labour markets to that not enough robust data is available about regional labour markets to fully align higher education programmes to regional needs. Part of the fully align higher education programmes to regional needs. Part of the problem stems from the relatively large number of higher education problem stems from the relatively large number of higher education institutions, their high degree of autonomy and the decentralised nature of institutions, their high degree of autonomy and the decentralised nature of the higher education system of the Bío Bío Region. These characteristics the higher education system of the Bío Bío Region. These characteristics provide advantages and strengths to the system as a whole, but have a provide advantages and strengths to the system as a whole, but have a negative impact on the ability of individual institutions to address the negative impact on the ability of individual institutions to address the regional labour market needs. regional labour market needs.

2.8 Enhancing employability 2.8 Enhancing employability

The OECD/World Bank Review of Chilean Tertiary Education (2009) The OECD/World Bank Review of Chilean Tertiary Education (2009) found that the length of university degree programmes are problematic in found that the length of university degree programmes are problematic in

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Chile for a range of reasons, including: i) for equity, because it raises the Chile for a range of reasons, including: i) for equity, because it raises the financial and opportunity costs of getting a degree; ii) for relevance, because financial and opportunity costs of getting a degree; ii) for relevance, because it unnecessarily delays students’ entry into labour markets and it unnecessarily delays students’ entry into labour markets and disproportionately emphasises theoretical content rather than more disproportionately emphasises theoretical content rather than more professionally pertinent material; iii) for quality, as it helps maintain a focus professionally pertinent material; iii) for quality, as it helps maintain a focus on the number of hours spent in study rather than on competencies acquired; on the number of hours spent in study rather than on competencies acquired; iv) for system governance, because it helps sustain the belief that a (longer) iv) for system governance, because it helps sustain the belief that a (longer) university degree must be more valuable than shorter non-university university degree must be more valuable than shorter non-university degrees; v) for financing, as it depresses graduation rates and erodes the degrees; v) for financing, as it depresses graduation rates and erodes the internal efficiency of institutions; vi) for research, because students who internal efficiency of institutions; vi) for research, because students who average 7 or more years to obtain their first degree may be dissuaded from average 7 or more years to obtain their first degree may be dissuaded from pursuing advanced degrees; and vii) for transparency and accountability, pursuing advanced degrees; and vii) for transparency and accountability, because the persistence of high drop-out rates appears at least partially because the persistence of high drop-out rates appears at least partially responsible for the reluctance of institutions to analyse and share detailed responsible for the reluctance of institutions to analyse and share detailed data on key indicators such as enrolment and graduation rates. data on key indicators such as enrolment and graduation rates.

In addition, the OECD/World Bank review (2009) found that employers In addition, the OECD/World Bank review (2009) found that employers in Chile generally have significant misgivings about the relevance of the in Chile generally have significant misgivings about the relevance of the knowledge, competencies and skills that university graduates bring to the knowledge, competencies and skills that university graduates bring to the labour market. Employers also lack the ability to make the kind of regular, labour market. Employers also lack the ability to make the kind of regular, systematic input into universities’ curriculum content, teaching practices, systematic input into universities’ curriculum content, teaching practices, and institutional governance that would enable them to argue for changes. and institutional governance that would enable them to argue for changes. Employers claim to be happier with the quality of graduates from the non- Employers claim to be happier with the quality of graduates from the non- university institutions, including the professional institutes (IP) and university institutions, including the professional institutes (IP) and technical training centres (CFT). However, employers are unhappy with the technical training centres (CFT). However, employers are unhappy with the quantity of these graduates, which they see as insufficient to meet the quantity of these graduates, which they see as insufficient to meet the country’s economic needs. country’s economic needs.

The Review of the Bío Bío Region confirms the findings of The Review of the Bío Bío Region confirms the findings of OECD/World Bank review of Chilean Tertiary Education. Close links OECD/World Bank review of Chilean Tertiary Education. Close links between labour markets and higher education institutions were, in general, between labour markets and higher education institutions were, in general, not in evidence. Some encouraging steps in this direction have been taken, not in evidence. Some encouraging steps in this direction have been taken, but in most instances they were discipline-based rather than institutionally but in most instances they were discipline-based rather than institutionally driven. INACAP, however, has built experiential educational approach on driven. INACAP, however, has built experiential educational approach on the basis of “learning by doing” that has direct positive effect on the the basis of “learning by doing” that has direct positive effect on the employability of its graduates (see Box 2.3). employability of its graduates (see Box 2.3).

Internationally, many universities and higher education institutions are Internationally, many universities and higher education institutions are building closer, more systematic links with the world of work. In the United building closer, more systematic links with the world of work. In the United Kingdom, Knowledge Transfer Partnership programme (Former Teaching Kingdom, Knowledge Transfer Partnership programme (Former Teaching Company Scheme) provides a grant to cover part of the operation cost to Company Scheme) provides a grant to cover part of the operation cost to transfer and embed knowledge into business via a strategic project. SMEs transfer and embed knowledge into business via a strategic project. SMEs represent about 90% of industry partners. Cooperative education in represent about 90% of industry partners. Cooperative education in

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Canadian universities helps students complete work terms in industry as part Canadian universities helps students complete work terms in industry as part of their curriculum. Some universities, such as the University of Aalborg in of their curriculum. Some universities, such as the University of Aalborg in Denmark, have also taken steps to embed employability and transferable Denmark, have also taken steps to embed employability and transferable skills in their core curriculum (see Box 2.3). skills in their core curriculum (see Box 2.3).

Box 2.3. Embedding employability in learning process Box 2.3. Embedding employability in learning process

INACAP Technical University is the largest educational community in Chile. INACAP Technical University is the largest educational community in Chile. It has 25 campuses throughout Chile with around 82 000 students in more than It has 25 campuses throughout Chile with around 82 000 students in more than 100 educational programmes. Its study programmes at offered at CFT-, IP- and 100 educational programmes. Its study programmes at offered at CFT-, IP- and university-level range from 2.5 to 5 years in length. In the Bío Bío Region, there university-level range from 2.5 to 5 years in length. In the Bío Bío Region, there are three INACAP campuses in Chillán, Los Ángeles and Talcahuano in the are three INACAP campuses in Chillán, Los Ángeles and Talcahuano in the metropolitan area of Concepción, with around 9 900 students and 470 faculty. metropolitan area of Concepción, with around 9 900 students and 470 faculty. INACAP maintains close labour market links with Chile’s “business and INACAP maintains close labour market links with Chile’s “business and industry” and “professional and business organisations” to ensure labour market industry” and “professional and business organisations” to ensure labour market relevance of its study programmes. Almost 40% of faculty come from the relevance of its study programmes. Almost 40% of faculty come from the business sector. The heads of educational programmes participate in business and business sector. The heads of educational programmes participate in business and professional organisations. INACAP’s educational approach is based on “learning professional organisations. INACAP’s educational approach is based on “learning by doing”: it combines theoretical knowledge through practical application in by doing”: it combines theoretical knowledge through practical application in laboratories and internships in order to build work-related competencies. Its laboratories and internships in order to build work-related competencies. Its global partners include University of Texas at Austin’s IC2, Monterrey Tech, global partners include University of Texas at Austin’s IC2, Monterrey Tech, Harvard University and the Paul Bocuse Institute. The network facilitates Harvard University and the Paul Bocuse Institute. The network facilitates professional development of the faculty and up-to-date academic programmes professional development of the faculty and up-to-date academic programmes and contents. and contents. INACAP collaborates actively with local businesses and municipalities. In the INACAP collaborates actively with local businesses and municipalities. In the Bío Bío Region it has carried out different project to regenerate former coal Bío Bío Region it has carried out different project to regenerate former coal mining zone in Lota and Arauco. For example, four INACAP professors and mining zone in Lota and Arauco. For example, four INACAP professors and 80 students have developed “a gastronomic route” for Lota and Arauco. In 80 students have developed “a gastronomic route” for Lota and Arauco. In partnership with the local government and Fundación Chile, INACAP has also partnership with the local government and Fundación Chile, INACAP has also developed marketing strategies to foster tourism in the two distressed developed marketing strategies to foster tourism in the two distressed communities. communities. All this has contributed to the employment outcomes of INACAP graduates. All this has contributed to the employment outcomes of INACAP graduates. The INACAP’s 2008 graduate follow-up study shows that 91% of the INACAP The INACAP’s 2008 graduate follow-up study shows that 91% of the INACAP graduates find employment during the first 6 months after graduation and 36% graduates find employment during the first 6 months after graduation and 36% within a month. 45% of those graduates who were in employment said that job within a month. 45% of those graduates who were in employment said that job preparation was the most important factor in obtaining employment. preparation was the most important factor in obtaining employment. Aalborg University was established in 1974 after years of popular campaign Aalborg University was established in 1974 after years of popular campaign in the region to establish a university in northern Jutland in Denmark. The in the region to establish a university in northern Jutland in Denmark. The campaign formed the basis for a close dialogue with the surrounding society campaign formed the basis for a close dialogue with the surrounding society relying on cooperation with the business sector, trade unions and cultural life. An relying on cooperation with the business sector, trade unions and cultural life. An important early decision was to base research and educational activities on important early decision was to base research and educational activities on interdisciplinary integration, problem orientation and group work. interdisciplinary integration, problem orientation and group work.

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Box 2.3. Embedding employability in learning process (continued) Box 2.3. Embedding employability in learning process (continued)

In project oriented problem-based learning, study programmes are organised In project oriented problem-based learning, study programmes are organised around interdisciplinary project work in groups. Up to 50% of the study is around interdisciplinary project work in groups. Up to 50% of the study is problem-oriented project work: student work in multidisciplinary teams to solve problem-oriented project work: student work in multidisciplinary teams to solve real-life problems which have been defined in collaboration with firms, real-life problems which have been defined in collaboration with firms, organisations and public institutions. At any one time, there are 2 000 to organisations and public institutions. At any one time, there are 2 000 to 3 000 ongoing projects to ensure a high degree of collaboration with the society 3 000 ongoing projects to ensure a high degree of collaboration with the society and private sector. and private sector. The Aalborg model is based on a win-win situation: It provides students with The Aalborg model is based on a win-win situation: It provides students with transferable skills and authentic work experience while enterprises benefit from a transferable skills and authentic work experience while enterprises benefit from a clearer picture of what the university stands for and how students might fit in as clearer picture of what the university stands for and how students might fit in as prospective employees. Finally, the university gains feedback from the world of prospective employees. Finally, the university gains feedback from the world of work and also benefits from access to instructive cases and ideas for research and work and also benefits from access to instructive cases and ideas for research and teaching. teaching.

Source: OECD (2007), Higher Education and Regions: Globally Competitive, Locally Source: OECD (2007), Higher Education and Regions: Globally Competitive, Locally Engaged, OECD Publishing, Paris, p. 157. Engaged, OECD Publishing, Paris, p. 157.

2.9 Building entrepreneurship skills 2.9 Building entrepreneurship skills

The Bío Bío Region has a low rate of business creation in comparison to The Bío Bío Region has a low rate of business creation in comparison to other regions of Chile, which suggests that finding ways to increase other regions of Chile, which suggests that finding ways to increase entrepreneurship could be an effective strategy for job creation. The entrepreneurship could be an effective strategy for job creation. The Universidad del Desarrollo, in partnership with the Global Entrepreneurship Universidad del Desarrollo, in partnership with the Global Entrepreneurship Monitor (GEM) and three other Chilean universities,1 publishes an annual Monitor (GEM) and three other Chilean universities,1 publishes an annual assessment of the regional level of entrepreneurial activity. According to the assessment of the regional level of entrepreneurial activity. According to the Bío Bío 2008-09 regional report (GEM-Chile, 2009), 58% of the 18- Bío Bío 2008-09 regional report (GEM-Chile, 2009), 58% of the 18- 64 year-old population in the Bío Bío Region consider themselves to have 64 year-old population in the Bío Bío Region consider themselves to have the skills and knowledge to start a new business. This figure is slightly lower the skills and knowledge to start a new business. This figure is slightly lower than the national average of 62.6%. More importantly, the lack of effective than the national average of 62.6%. More importantly, the lack of effective policies to foster entrepreneurship and limited knowledge transfer from policies to foster entrepreneurship and limited knowledge transfer from universities to business and industry are identified as weaknesses in the universities to business and industry are identified as weaknesses in the region. region. Higher education institutions have made some initial steps to boost Higher education institutions have made some initial steps to boost university spinoffs and graduate entrepreneurship in the region. For university spinoffs and graduate entrepreneurship in the region. For example, three universities (University of Concepción, University of example, three universities (University of Concepción, University of Bío Bío and INACAP) have their own business incubators to support Bío Bío and INACAP) have their own business incubators to support entrepreneurs through mentoring and access to funding opportunities and entrepreneurs through mentoring and access to funding opportunities and equipped spaces. In the case of INACAP the incubator is linked to the equipped spaces. In the case of INACAP the incubator is linked to the national INACAP’s network of incubators. There was limited evidence of national INACAP’s network of incubators. There was limited evidence of

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entrepreneurship training to students although private universities appear to entrepreneurship training to students although private universities appear to be leading the way. The OECD/World Bank Team encourages higher be leading the way. The OECD/World Bank Team encourages higher education institutions to step up their entrepreneurship activities that are education institutions to step up their entrepreneurship activities that are currently at early stages and share good practices among themselves (see currently at early stages and share good practices among themselves (see Table 2.1). Table 2.1).

Table 2.1. HEIs’ business incubators in the Bío Bío Region Table 2.1. HEIs’ business incubators in the Bío Bío Region

Incubator Institution Year of Outcomes (Sep 2009) Incubator Institution Year of Outcomes (Sep 2009) establishment establishment IdeaIncuba University of 2001 12 companies graduated IdeaIncuba University of 2001 12 companies graduated Concepción (158 jobs) Concepción (158 jobs) 10 companies in incubation 10 companies in incubation (54 jobs) (54 jobs) 17 companies in pre-incubation 17 companies in pre-incubation (25 jobs) (25 jobs) Business University of 2001 11 companies graduated Business University of 2001 11 companies graduated Development Bío Bío (28 jobs) Development Bío Bío (28 jobs) Centre 15 companies in incubation Centre 15 companies in incubation (31 jobs) (31 jobs) Inetec INACAP 2007 24 companies in incubation Inetec INACAP 2007 24 companies in incubation (32 jobs) (32 jobs) Source: University of Concepción, University of Bío Bío and INACAP Source: University of Concepción, University of Bío Bío and INACAP

Recent OECD work on entrepreneurship recommends that university Recent OECD work on entrepreneurship recommends that university provision of entrepreneurship programmes should be scaled up, focusing on provision of entrepreneurship programmes should be scaled up, focusing on growth-oriented entrepreneurship using interactive and experiential teaching growth-oriented entrepreneurship using interactive and experiential teaching methods. International experiences in Mexico and Germany highlight two methods. International experiences in Mexico and Germany highlight two different approaches that the region and its higher education institutions different approaches that the region and its higher education institutions could benefit from in stepping up their entrepreneurship activities. could benefit from in stepping up their entrepreneurship activities. Monterrey Tech, Mexico, has made entrepreneurship training compulsory to Monterrey Tech, Mexico, has made entrepreneurship training compulsory to all students (see Box 2.4). The institution has supported a wide portfolio of all students (see Box 2.4). The institution has supported a wide portfolio of high-tech spin offs, but also has an impressive record in support of social high-tech spin offs, but also has an impressive record in support of social entrepreneurship, including notable work in remote, rural areas. In entrepreneurship, including notable work in remote, rural areas. In Brandenburg, Germany, universities and other higher education institutions Brandenburg, Germany, universities and other higher education institutions collaborate together and with the regional development agency in order to collaborate together and with the regional development agency in order to pool resources and gain critical mass in advancing entrepreneurship (see pool resources and gain critical mass in advancing entrepreneurship (see Box 2.5). These and other examples show that higher education institutions Box 2.5). These and other examples show that higher education institutions can make a big difference in supporting the development of can make a big difference in supporting the development of entrepreneurship in a region. entrepreneurship in a region.

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Box 2.4. Enhancing entrepreneurship in Mexico Box 2.4. Enhancing entrepreneurship in Mexico

The Monterrey Tech (Tecnológico de Monterrey or ITESM) is a private The Monterrey Tech (Tecnológico de Monterrey or ITESM) is a private institution of higher education founded in 1943 by Mexican business leaders. institution of higher education founded in 1943 by Mexican business leaders. Today, Monterrey Tech has 33 campuses throughout Mexico and 6 academic Today, Monterrey Tech has 33 campuses throughout Mexico and 6 academic centres in Latin American countries. It also has international offices in North centres in Latin American countries. It also has international offices in North America, Europe and Asia. America, Europe and Asia. Monterrey Tech has pioneered entrepreneurship education in a wide range of Monterrey Tech has pioneered entrepreneurship education in a wide range of disciplines and is using interactive methods to provide all students with the skills disciplines and is using interactive methods to provide all students with the skills that they need to create and develop their own businesses. Entrepreneurship is a that they need to create and develop their own businesses. Entrepreneurship is a mandatory requirement for graduation in all study programmes and mandatory requirement for graduation in all study programmes and interdisciplinary open innovation spaces are available in most areas of study. interdisciplinary open innovation spaces are available in most areas of study. Moreover, each campus provides business incubators for for-profit enterprises as Moreover, each campus provides business incubators for for-profit enterprises as well as for ventures seeking improvement in social and community development. well as for ventures seeking improvement in social and community development. The Programa Emprendedor (Entrepreneur Programme) was launched in 1985 The Programa Emprendedor (Entrepreneur Programme) was launched in 1985 to develop entrepreneurial skills in students as part of the curricula. In addition, in to develop entrepreneurial skills in students as part of the curricula. In addition, in 2002 an entrepreneurial certificate was launched as an option in several 2002 an entrepreneurial certificate was launched as an option in several campuses. In 2007, a bachelor degree in business creation and development was campuses. In 2007, a bachelor degree in business creation and development was launched and today it is been offered in 16 campuses with minors in consulting, launched and today it is been offered in 16 campuses with minors in consulting, research & innovation and social development and with an opportunity to focus research & innovation and social development and with an opportunity to focus on business in Asia, business culture in China or globalisation. There are also on business in Asia, business culture in China or globalisation. There are also three graduate programmes in entrepreneurship: master in innovation and three graduate programmes in entrepreneurship: master in innovation and entrepreneurial development through virtual university, master in entrepreneurial entrepreneurial development through virtual university, master in entrepreneurial and technological innovation in partnership with Babson College and master in and technological innovation in partnership with Babson College and master in family business creation. family business creation. The Monterrey Tech’s Institute for Entrepreneurial Development (Instituto The Monterrey Tech’s Institute for Entrepreneurial Development (Instituto para el Desarrollo de Emprendedores, IDE) was established in 2006 to para el Desarrollo de Emprendedores, IDE) was established in 2006 to coordinate efforts in business creation and development. IDE has 26 business coordinate efforts in business creation and development. IDE has 26 business incubators, 14 business accelerators and 12 technology parks. In 2009, altogether incubators, 14 business accelerators and 12 technology parks. In 2009, altogether 1 318 firms were involved in the IDE business development programmes; 1 318 firms were involved in the IDE business development programmes; 1 068 of them in incubation phase ranging from pre-incubation to post- 1 068 of them in incubation phase ranging from pre-incubation to post- incubation, 198 in acceleration and 52 in technology parks. The Centre for incubation, 198 in acceleration and 52 in technology parks. The Centre for Intellectual Property and Technology Transfer supports faculty members, Intellectual Property and Technology Transfer supports faculty members, students, investors and businesses with intangible asset and intellectual property students, investors and businesses with intangible asset and intellectual property valuation, commercialisation of technology developed by Monterrey Tech and valuation, commercialisation of technology developed by Monterrey Tech and acquisition of technology to create high-tech companies. The Angel Investors’ acquisition of technology to create high-tech companies. The Angel Investors’ clubs Network of Monterrey Tech integrates more than 130 private investors clubs Network of Monterrey Tech integrates more than 130 private investors within the 10 regional clubs that have been established. In addition, Sustainable within the 10 regional clubs that have been established. In addition, Sustainable Social Development Institute is running 60 incubators for social entrepreneurship Social Development Institute is running 60 incubators for social entrepreneurship in different parts of Mexico to support regional development and the creation and in different parts of Mexico to support regional development and the creation and development of micro-businesses in the community. development of micro-businesses in the community.

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Box 2.4. Enhancing entrepreneurship in Mexico (continued) Box 2.4. Enhancing entrepreneurship in Mexico (continued)

In 2009, altogether 8 900 Monterrey Tech students took part in In 2009, altogether 8 900 Monterrey Tech students took part in entrepreneurship education provided by 118 professors. Year after year, entrepreneurship education provided by 118 professors. Year after year, Monterrey Tech boasts the highest number of patent requests in Mexico. In 2007- Monterrey Tech boasts the highest number of patent requests in Mexico. In 2007- 2008, the research centres generated 23 spin-off companies and the network of 2008, the research centres generated 23 spin-off companies and the network of business incubators and accelerators created 4 700 direct jobs in Mexico making business incubators and accelerators created 4 700 direct jobs in Mexico making Monterrey Tech the most productive deal flow source in Mexico. Universities Monterrey Tech the most productive deal flow source in Mexico. Universities throughout Latin America are following the Monterrey Tech curriculum and best throughout Latin America are following the Monterrey Tech curriculum and best practices in business formation and regional economic development. practices in business formation and regional economic development.

Box 2.5. Co-ordinated entrepreneurship efforts in Brandenburg, Box 2.5. Co-ordinated entrepreneurship efforts in Brandenburg, Germany Germany

The Brandenburg Institute for Entrepreneurship and SMEs (BIEM) is the The Brandenburg Institute for Entrepreneurship and SMEs (BIEM) is the entrepreneurship institute of the regional development agency and nine public entrepreneurship institute of the regional development agency and nine public higher education institutions including universities and universities of applied higher education institutions including universities and universities of applied sciences. BIEM was founded in 2006 as a registered non-profit organisation. One sciences. BIEM was founded in 2006 as a registered non-profit organisation. One of its main objectives is to reinforce, complement and co-ordinate the of its main objectives is to reinforce, complement and co-ordinate the entrepreneurship support activities offered by Brandenburg’s higher education entrepreneurship support activities offered by Brandenburg’s higher education institutions (HEIs) by pooling resources and enhancing collaboration and institutions (HEIs) by pooling resources and enhancing collaboration and exchange. BIEM helps to achieve the “critical mass” needed to realise projects exchange. BIEM helps to achieve the “critical mass” needed to realise projects with wide ranging impact. with wide ranging impact. The annual budget of EUR 100 000 is financed by the European Structural The annual budget of EUR 100 000 is financed by the European Structural Funds, the Ministry of Economics of Brandenburg and other project-related Funds, the Ministry of Economics of Brandenburg and other project-related revenues (e.g. fees for services). BIEM has eight employees. Each partner revenues (e.g. fees for services). BIEM has eight employees. Each partner organisation runs additional projects and employs additional personnel according organisation runs additional projects and employs additional personnel according to project needs or the overall management of an entrepreneurship to project needs or the overall management of an entrepreneurship institute/centre. institute/centre. BIEM’s activities include entrepreneurship education, start-up support, BIEM’s activities include entrepreneurship education, start-up support, entrepreneurship research and networking with business support organisations entrepreneurship research and networking with business support organisations and other universities. It focuses on the expansion and better integration of and other universities. It focuses on the expansion and better integration of entrepreneurship education into curricula, including innovative teaching methods, entrepreneurship education into curricula, including innovative teaching methods, broad communication of activities, and an expansion of co-operation beyond broad communication of activities, and an expansion of co-operation beyond BIEM’s core partners (e.g. by involvement of university staff and external BIEM’s core partners (e.g. by involvement of university staff and external experts, agencies and companies). Partner benefit from rising numbers of students experts, agencies and companies). Partner benefit from rising numbers of students participating in entrepreneurship education activities and an increase in the participating in entrepreneurship education activities and an increase in the number and variety of courses available for their students. number and variety of courses available for their students.

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Box 2.5. Co-ordinated entrepreneurship efforts in Brandenburg, Box 2.5. Co-ordinated entrepreneurship efforts in Brandenburg, Germany (continued) Germany (continued)

HEIs have established “entrepreneurship location managers/animators” HEIs have established “entrepreneurship location managers/animators” (Standortmanager), who act as “one-stop-interlocutors” for would-be (Standortmanager), who act as “one-stop-interlocutors” for would-be entrepreneurs. This structure contributes to building stronger linkages between entrepreneurs. This structure contributes to building stronger linkages between the university’s internal and external support services and to integrating the university’s internal and external support services and to integrating entrepreneurship education and start-up support services. Other projects include entrepreneurship education and start-up support services. Other projects include “Entrepreneurship ACs”, that evaluate entrepreneurial potentials and learning “Entrepreneurship ACs”, that evaluate entrepreneurial potentials and learning needs before start-up and match them with adequate mentoring during start-up, needs before start-up and match them with adequate mentoring during start-up, “Team Competency Lab” that focused on team building and coaching at the BTU “Team Competency Lab” that focused on team building and coaching at the BTU Cottbus or “GO:Incubator” at the University of Potsdam. Cottbus or “GO:Incubator” at the University of Potsdam. In 2009, BIEM generated 370 initial consultations to would-be entrepreneurs. In 2009, BIEM generated 370 initial consultations to would-be entrepreneurs. In addition, 203 were referred to external business support structures and In addition, 203 were referred to external business support structures and 86 business start-ups were supported. The key elements for the institute’s success 86 business start-ups were supported. The key elements for the institute’s success is the multidimensional co-operation between all HEIs and their external partners, is the multidimensional co-operation between all HEIs and their external partners, the involvement of HEIs in regional leadership and a phase approach to the involvement of HEIs in regional leadership and a phase approach to entrepreneurship. entrepreneurship.

Source: OECD (2009b), Universities, Innovation and Entrepreneurship: Criteria and Source: OECD (2009b), Universities, Innovation and Entrepreneurship: Criteria and Examples of Good Practice, OECD Publishing, Paris, pp. 56-57. Examples of Good Practice, OECD Publishing, Paris, pp. 56-57.

2.10 Human capital development and the higher education system of 2.10 Human capital development and the higher education system of the Bío Bío Region the Bío Bío Region

One of the main issues impeding human capital development in the One of the main issues impeding human capital development in the Bío Bío Region is the fragmented governance architecture and the absence Bío Bío Region is the fragmented governance architecture and the absence of a region-wide coordinating structure and mechanism to articulate a long of a region-wide coordinating structure and mechanism to articulate a long term vision and implement an integrated development strategy for all higher term vision and implement an integrated development strategy for all higher education institutions. The OECD/World Bank team recommends that the education institutions. The OECD/World Bank team recommends that the authorities and interested parties in the region work together with the other authorities and interested parties in the region work together with the other regions in Chile to propose the establishment of a higher education regions in Chile to propose the establishment of a higher education coordinating body that could define region-wide goals, policies and coordinating body that could define region-wide goals, policies and priorities. priorities. The higher education system of the Bío Bío Region encompasses around The higher education system of the Bío Bío Region encompasses around 40 higher education institutions, offering technical, professional and 40 higher education institutions, offering technical, professional and university level studies. This is a large number of institutions in comparison university level studies. This is a large number of institutions in comparison to the rest of Chile. These institutions, many of which have been established to the rest of Chile. These institutions, many of which have been established in the last 20 to 30 years, are thriving in terms of enrolment. But the fact in the last 20 to 30 years, are thriving in terms of enrolment. But the fact remains that these institutions are highly decentralised, that there is limited remains that these institutions are highly decentralised, that there is limited

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capacity for regional coordination, and that institutions often see each other capacity for regional coordination, and that institutions often see each other more as competitors than potential collaborators. Is the large number of more as competitors than potential collaborators. Is the large number of institutions in the Bío Bío Region an advantage or a disadvantage? institutions in the Bío Bío Region an advantage or a disadvantage? The organisational characteristics of the regional higher education The organisational characteristics of the regional higher education system are likely to come into greater importance in coming years as the system are likely to come into greater importance in coming years as the system absorbs and consolidates the rapid growth it has experienced in system absorbs and consolidates the rapid growth it has experienced in recent years. The pressures that the system will experience will result from recent years. The pressures that the system will experience will result from the way organisational structures affect students, employers, and the the way organisational structures affect students, employers, and the system’s responsiveness to regional needs. system’s responsiveness to regional needs. One issue that can be expected to increase in importance is the mobility One issue that can be expected to increase in importance is the mobility of students between higher education institutions and across institutional of students between higher education institutions and across institutional sectors. As noted earlier, higher education in the Bío Bío Region, like sectors. As noted earlier, higher education in the Bío Bío Region, like elsewhere in Chile, is organised into three sectors: universities, professional elsewhere in Chile, is organised into three sectors: universities, professional institutes (IP) and technical training centres (CFT). This approach to institutes (IP) and technical training centres (CFT). This approach to organising the system offers clear advantages in terms of assuring capacity organising the system offers clear advantages in terms of assuring capacity to respond to a wide range of educational and labour market needs. The to respond to a wide range of educational and labour market needs. The organisational structure has also encouraged institutions to focus on discrete organisational structure has also encouraged institutions to focus on discrete missions and student markets. missions and student markets. As the higher education market matures, the segregation of the higher As the higher education market matures, the segregation of the higher education system into discrete levels presents challenges. The main education system into discrete levels presents challenges. The main challenge is that student mobility between institutions is often difficult. challenge is that student mobility between institutions is often difficult. Different institutions, particularly at different levels, typically have different Different institutions, particularly at different levels, typically have different systems for admitting students, different academic programs structures, and systems for admitting students, different academic programs structures, and different standards of assessment. All of these can complicate or inhibit different standards of assessment. All of these can complicate or inhibit student mobility. Students will increasingly desire to move from one level to student mobility. Students will increasingly desire to move from one level to another as their careers and interests develop. Having a simple and another as their careers and interests develop. Having a simple and transparent regional articulation system is in the public interest. transparent regional articulation system is in the public interest. There is a need to develop more transparent pathways for students There is a need to develop more transparent pathways for students through the higher education system, particularly when the logical pathway through the higher education system, particularly when the logical pathway for students is through multiple institutions. This involves the development for students is through multiple institutions. This involves the development of stronger credit recognition schemes, course and programme articulation of stronger credit recognition schemes, course and programme articulation agreements, clear and enforceable policies related to credit transfer and agreements, clear and enforceable policies related to credit transfer and increased support for joint and collaborative programmes. All these increased support for joint and collaborative programmes. All these approaches should include both university and non-university sectors, since approaches should include both university and non-university sectors, since their marked separation acts as an impediment for student mobility and their marked separation acts as an impediment for student mobility and human capital development. human capital development. Immediate measures are needed to raise the attractiveness and prestige Immediate measures are needed to raise the attractiveness and prestige of technical tertiary education and diminish the segmentation between of technical tertiary education and diminish the segmentation between university and non-university institutions. A potential step in this direction university and non-university institutions. A potential step in this direction could be the establishment of a national qualifications framework to could be the establishment of a national qualifications framework to facilitate progression from one degree type to another, to allow credit for facilitate progression from one degree type to another, to allow credit for

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previous academic and job-related experiences and competencies, and to previous academic and job-related experiences and competencies, and to ease transitions between areas of study. The transition toward a national ease transitions between areas of study. The transition toward a national qualifications framework would benefit from inclusion of a review of all qualifications framework would benefit from inclusion of a review of all tertiary curricula, to make them more flexible and address excessive study tertiary curricula, to make them more flexible and address excessive study hours and theoretical content in degree programmes. hours and theoretical content in degree programmes. An interesting project is the effort of CRUCH universities to develop a An interesting project is the effort of CRUCH universities to develop a new national system of academic credit transfer based on a student workload new national system of academic credit transfer based on a student workload model, rather than traditional models of faculty contact hours. This model, rather than traditional models of faculty contact hours. This approach, similar to models now under development in Europe as part of the approach, similar to models now under development in Europe as part of the Bologna Process, and an outgrowth of the highly collaborative Tuning Latin Bologna Process, and an outgrowth of the highly collaborative Tuning Latin America project, is a potential model not just for Chile but more many other America project, is a potential model not just for Chile but more many other countries and regions. Another noteworthy initiative has been launched in countries and regions. Another noteworthy initiative has been launched in INACAP to improve articulation between its technical training, professional INACAP to improve articulation between its technical training, professional institute and bachelor level education. The University of Concepción has institute and bachelor level education. The University of Concepción has articulation systems in place within its technical training centre (CFT) and articulation systems in place within its technical training centre (CFT) and professional institute. The ability of higher education institutions to act as a professional institute. The ability of higher education institutions to act as a system to address pressing regional needs will be of increasing importance system to address pressing regional needs will be of increasing importance to the region in coming years. The current initiatives, while commendable, to the region in coming years. The current initiatives, while commendable, are limited. These and other efforts should scaled up and extended to cover are limited. These and other efforts should scaled up and extended to cover all accredited institutions. all accredited institutions.

Recommendations Recommendations

The Bío Bío Region has made strong progress in widening access to The Bío Bío Region has made strong progress in widening access to higher education and reaching out to students from lower socio economic higher education and reaching out to students from lower socio economic background. The higher education institutions have significant activities background. The higher education institutions have significant activities underway to raise aspirations and academic performance of students, the underway to raise aspirations and academic performance of students, the quality of school education and for the promotion of human capital and quality of school education and for the promotion of human capital and skills development in general. skills development in general. The OECD/World Bank Review Team recommends that following The OECD/World Bank Review Team recommends that following measures are taken in promoting human capital development: measures are taken in promoting human capital development: • Regional government, higher education institutions, other • Regional government, higher education institutions, other educational institutions and key stakeholders of the economy and educational institutions and key stakeholders of the economy and society should work together to establish a Regional Human Capital society should work together to establish a Regional Human Capital Development System to define region-wide goals, policies and Development System to define region-wide goals, policies and priorities extending from primary to tertiary education. As part of priorities extending from primary to tertiary education. As part of this system, higher education institutions and regional government this system, higher education institutions and regional government should consider establishing a higher education coordinating body should consider establishing a higher education coordinating body that would define goals, policies and priorities within the region. A that would define goals, policies and priorities within the region. A major function of this body would be to evaluate how well the major function of this body would be to evaluate how well the

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higher education system is delivering the amount and quality of higher education system is delivering the amount and quality of skills needed by the labour markets. skills needed by the labour markets. • Higher education institutions and regional government and • Higher education institutions and regional government and interested parties should work together to improve the data on interested parties should work together to improve the data on labour market needs and trends. Higher education institutions should labour market needs and trends. Higher education institutions should systematically monitor student progress as well as students’ labour systematically monitor student progress as well as students’ labour market outcomes and graduate destinations (out-migration). The market outcomes and graduate destinations (out-migration). The most effective region-wide graduate labour market systems are most effective region-wide graduate labour market systems are based on the collection of comprehensive labour market intelligence based on the collection of comprehensive labour market intelligence and the on-line publication of the data in a single place to improve and the on-line publication of the data in a single place to improve students’ ability to make rational choices about their studies and to students’ ability to make rational choices about their studies and to help graduates and employers come together and move toward help graduates and employers come together and move toward employment. Also a key is to use the data strategically to identify employment. Also a key is to use the data strategically to identify regional priorities and at an institutional level, to respond to the data regional priorities and at an institutional level, to respond to the data in terms of course provision and the supply of employer specific in terms of course provision and the supply of employer specific skills. skills. • Higher education institutions and regional government should take • Higher education institutions and regional government should take steps to significantly expand higher education opportunities for steps to significantly expand higher education opportunities for working age adults. These steps should create clear and transparent working age adults. These steps should create clear and transparent pathways to advanced education for adults, including the ability to pathways to advanced education for adults, including the ability to attend multiple institutions, obtain short-term education and training attend multiple institutions, obtain short-term education and training that can later be applied to degrees, and re-skilling and up-skilling that can later be applied to degrees, and re-skilling and up-skilling courses and programmes designed around the needs of adults who courses and programmes designed around the needs of adults who often combine work and study. This involves the development of a often combine work and study. This involves the development of a qualifications framework: strong credit recognition schemes, course qualifications framework: strong credit recognition schemes, course and programme articulation agreements, clear and enforceable and programme articulation agreements, clear and enforceable policies related to credit transfer and increased support for joint and policies related to credit transfer and increased support for joint and collaborative programmes. collaborative programmes. • Higher education institutions and regional government should • Higher education institutions and regional government should continue to expand efforts to increase the enrolment and success of continue to expand efforts to increase the enrolment and success of students who are the first in their families to pursue higher education students who are the first in their families to pursue higher education degrees. This includes building upon existing models of academic degrees. This includes building upon existing models of academic and social support services for students, increasing institutional and and social support services for students, increasing institutional and state aid to students as well as moving away from teacher-centred state aid to students as well as moving away from teacher-centred learning methods. learning methods. • Higher education institutions should continue to strengthen their • Higher education institutions should continue to strengthen their efforts to improve completion rates. The efforts of several higher efforts to improve completion rates. The efforts of several higher education institutions in the region have shown genuine promise, education institutions in the region have shown genuine promise, and these efforts should be supported, expanded, and disseminated and these efforts should be supported, expanded, and disseminated as models to other institutions. as models to other institutions.

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• Higher education institutions should focus on the employability and • Higher education institutions should focus on the employability and entrepreneurial skills of graduates; providing them with the skills entrepreneurial skills of graduates; providing them with the skills and competences needed in a globalised knowledge economy. Work and competences needed in a globalised knowledge economy. Work and problem-based learning methods and programmes to build and problem-based learning methods and programmes to build entrepreneurship skills would improve retention after graduation in entrepreneurship skills would improve retention after graduation in the region. Similarly, efforts in language learning could help the the region. Similarly, efforts in language learning could help the region in its internationalisation efforts. All degree programmes region in its internationalisation efforts. All degree programmes should include compulsory English. should include compulsory English. • Employers and regional government should acknowledge the • Employers and regional government should acknowledge the increasing relevance and importance of education in technical increasing relevance and importance of education in technical employment fields. There is clear evidence that needs and employment fields. There is clear evidence that needs and opportunities are growing in these fields, but that these trends are opportunities are growing in these fields, but that these trends are under-recognised in the region and within higher education. under-recognised in the region and within higher education.

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Notes Notes

1. Universidad Católica del Norte (North Catholic University), Universidad 1. Universidad Católica del Norte (North Catholic University), Universidad Técnica Federico Santa María (Federico Santa María Technical Técnica Federico Santa María (Federico Santa María Technical University) and Universidad de La Frontera (University of La Frontera) University) and Universidad de La Frontera (University of La Frontera)

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References References

GEM (Global Entrepreneurship Monitor)-Chile (2009), Bío Bío Regional GEM (Global Entrepreneurship Monitor)-Chile (2009), Bío Bío Regional Report 2008-2009, Universidad del Desarrollo Publishing, Concepción. Report 2008-2009, Universidad del Desarrollo Publishing, Concepción. Ministry of Education - Government of Chile (2006), Liceos Prioritarios Ministry of Education - Government of Chile (2006), Liceos Prioritarios website, www.liceosprioritarios.cl, accessed 12 January 2010. website, www.liceosprioritarios.cl, accessed 12 January 2010. Monterrey Tech (2009), Institute for Entrepreneurial Development (Instituto Monterrey Tech (2009), Institute for Entrepreneurial Development (Instituto para el Desarrollo de Emprendedores, IDE) website, http://ide.itesm.mx, para el Desarrollo de Emprendedores, IDE) website, http://ide.itesm.mx, accessed 12 January 2010. accessed 12 January 2010. OECD (2007), Higher Education and Regions: Globally Competitive, OECD (2007), Higher Education and Regions: Globally Competitive, Locally Engaged, OECD Publishing, Paris, p. 157. Locally Engaged, OECD Publishing, Paris, p. 157. OECD (2008), Tertiary Education for the Knowledge Society, Volume 1: OECD (2008), Tertiary Education for the Knowledge Society, Volume 1: Special features: Governance, Funding, Quality, OECD Publishing, Special features: Governance, Funding, Quality, OECD Publishing, Paris. Paris. OECD (2009a), Education at a Glance: OECD Indicators, OECD OECD (2009a), Education at a Glance: OECD Indicators, OECD Publishing, Paris. Publishing, Paris. OECD (2009b), Universities, Innovation and Entrepreneurship: Criteria OECD (2009b), Universities, Innovation and Entrepreneurship: Criteria and Examples of Good Practice, OECD Publishing, Paris, pp. 56-57. and Examples of Good Practice, OECD Publishing, Paris, pp. 56-57. OECD (forthcoming), OECD Reviews of Higher Education in Regional and OECD (forthcoming), OECD Reviews of Higher Education in Regional and City Development, The Paso del Norte Region, US-Mexico, OECD City Development, The Paso del Norte Region, US-Mexico, OECD Publishing, Paris. Publishing, Paris. OECD-World Bank (2009), Tertiary Education in Chile, Reviews of OECD-World Bank (2009), Tertiary Education in Chile, Reviews of National Policies for Education, OECD Publishing, Paris. National Policies for Education, OECD Publishing, Paris. RSC (Bío Bío’s Regional Steering Committee) (2009), “The Bío Bío RSC (Bío Bío’s Regional Steering Committee) (2009), “The Bío Bío Region, Chile: Self-Evaluation Report”, OECD Reviews of Higher Region, Chile: Self-Evaluation Report”, OECD Reviews of Higher Education in Regional and City Development, IMHE, Education in Regional and City Development, IMHE, www.oecd.org/dataoecd/1/59/43694606.pdf www.oecd.org/dataoecd/1/59/43694606.pdf

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CONTRIBUTION OF RESEARCH TO REGIONAL INNOVATION IN THE BÍO BÍO REGION – 85 CONTRIBUTION OF RESEARCH TO REGIONAL INNOVATION IN THE BÍO BÍO REGION – 85

Chapter 3: Contribution of research to regional innovation in Chapter 3: Contribution of research to regional innovation in the Bío Bío Region the Bío Bío Region

Innovation and the commercialisation of research are considered Innovation and the commercialisation of research are considered increasingly important drivers of long-term economic growth. As such they increasingly important drivers of long-term economic growth. As such they receive considerable policy attention. This chapter will examine the receive considerable policy attention. This chapter will examine the effectiveness of innovation policy in the Bío Bío Region and role of research effectiveness of innovation policy in the Bío Bío Region and role of research conducted by the region’s higher education institutions. The chapter will conducted by the region’s higher education institutions. The chapter will first consider the strengths of Bío Bío innovation policy and efforts made by first consider the strengths of Bío Bío innovation policy and efforts made by the regional government, regional development agencies and higher the regional government, regional development agencies and higher education institutions. It will then examine where the policies and practices education institutions. It will then examine where the policies and practices can be improved identifying four key issues: i) review of the public sector can be improved identifying four key issues: i) review of the public sector role in innovation; ii) continuous improvement of empirical inputs into role in innovation; ii) continuous improvement of empirical inputs into policy; iii) building of the central focus for regional innovation; and policy; iii) building of the central focus for regional innovation; and iv) alignment of incentives in the higher education institutions. The chapter iv) alignment of incentives in the higher education institutions. The chapter concludes with specific recommendations to improve the regional concludes with specific recommendations to improve the regional innovation. innovation.

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3.1 The strengths of the innovation system in the Bío Bío Region 3.1 The strengths of the innovation system in the Bío Bío Region

The Bío Bío Region has been a pioneer in incorporating the concern for The Bío Bío Region has been a pioneer in incorporating the concern for innovation capacity and performance into its overall regional economic innovation capacity and performance into its overall regional economic development efforts. The Regional Agency for Innovation and Productive development efforts. The Regional Agency for Innovation and Productive Development (Agencia Regional de Innovación y Desarrollo Productivo or Development (Agencia Regional de Innovación y Desarrollo Productivo or ARIDP in its Spanish Acronym) was the first of such agencies in Chile to ARIDP in its Spanish Acronym) was the first of such agencies in Chile to include the word “innovation” in its name and, more importantly, to seek to include the word “innovation” in its name and, more importantly, to seek to integrate the promotion of innovative capacity within its overall approach to integrate the promotion of innovative capacity within its overall approach to promoting economic development. Innova Bío Bío, a co-operative venture promoting economic development. Innova Bío Bío, a co-operative venture between the Production Development Corporation (Corporación de between the Production Development Corporation (Corporación de Fomento de la Producción, or CORFO) and the regional government, pre- Fomento de la Producción, or CORFO) and the regional government, pre- dates the creation of the Innova Chile. In fact, the CORFO created the dates the creation of the Innova Chile. In fact, the CORFO created the national agency Innova Chile as the operational agency for innovation using national agency Innova Chile as the operational agency for innovation using the Innova Bío Bío as its model. the Innova Bío Bío as its model. A noticeable strength of the Bío Bío Region are the existing and A noticeable strength of the Bío Bío Region are the existing and emerging clusters in industries in which the region has a high comparative emerging clusters in industries in which the region has a high comparative advantage. The two most notable examples are the fisheries and forestry advantage. The two most notable examples are the fisheries and forestry clusters. With respect to fisheries, there is strong co-operation between clusters. With respect to fisheries, there is strong co-operation between different actors, including union leaders, shift managers, marine biologists, different actors, including union leaders, shift managers, marine biologists, university-based researchers and state government officials. The co- university-based researchers and state government officials. The cooperation has produced important and sophisticated analysis of where the operation has produced important and sophisticated analysis of where the Bío Bío Region has a comparative advantage and why – e.g. in what quality Bío Bío Region has a comparative advantage and why – e.g. in what quality and temperature conditions favourable for a specific type of aquaculture. and temperature conditions favourable for a specific type of aquaculture. The re-training of the workforce away from capture fisheries to aquaculture The re-training of the workforce away from capture fisheries to aquaculture appears to have been an important result of collaboration within this cluster. appears to have been an important result of collaboration within this cluster. The region should build on this experience as a model for cluster The region should build on this experience as a model for cluster development. This collaboration will be discussed in detail in Chapter 4. development. This collaboration will be discussed in detail in Chapter 4. With respect to forestry, the nature of the cluster is more varied and its With respect to forestry, the nature of the cluster is more varied and its research activities seem to be more diverse and upstream, but the research activities seem to be more diverse and upstream, but the cohesiveness of the stakeholders is similarly commendable. A high degree cohesiveness of the stakeholders is similarly commendable. A high degree of appreciation of the need for diversification of production and “creation” of appreciation of the need for diversification of production and “creation” of new comparative advantages for the Bío Bío Region particular of new comparative advantages for the Bío Bío Region particular endowment of forest resources seems to be driving research toward focused endowment of forest resources seems to be driving research toward focused solutions. For example, the Wood High Technology Centre (Centro de Alta solutions. For example, the Wood High Technology Centre (Centro de Alta Tecnología en Madera) at the University of Bío Bío is expanding graduate Tecnología en Madera) at the University of Bío Bío is expanding graduate enrolment and research in areas of fundamental research with clear enrolment and research in areas of fundamental research with clear commercial implications. The clusters members also demonstrated commercial implications. The clusters members also demonstrated knowledge of industry dynamics and the relative strengths of the Bío Bío knowledge of industry dynamics and the relative strengths of the Bío Bío Region with respect to other countries producing forest products. The cluster Region with respect to other countries producing forest products. The cluster

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should collaborate to transform these elements into concrete commercial should collaborate to transform these elements into concrete commercial opportunities exploitable in the short- to medium-term. opportunities exploitable in the short- to medium-term. The Bío Bío Region has hence created admirable advantages in its The Bío Bío Region has hence created admirable advantages in its incipient cluster strategy. It has been particularly successful in generating incipient cluster strategy. It has been particularly successful in generating political commitment and stakeholder involvement in cluster activities. The political commitment and stakeholder involvement in cluster activities. The challenge is to have these cluster members work towards cluster challenge is to have these cluster members work towards cluster development plans of increased technical relevance and quality. An example development plans of increased technical relevance and quality. An example of such a plan in the area of fisheries comes from Humboldt County, of such a plan in the area of fisheries comes from Humboldt County, California, United States (see Box 3.1). Adopting this type of approach California, United States (see Box 3.1). Adopting this type of approach could provide significant advantages to the Bío Bío Region’s cluster could provide significant advantages to the Bío Bío Region’s cluster development. development.

Box 3.1. Cluster development plan in fisheries: Humboldt County, Box 3.1. Cluster development plan in fisheries: Humboldt County, CA CA

The docks of Humboldt Bay in California have changed dramatically since the The docks of Humboldt Bay in California have changed dramatically since the 1970s boom of populous fisheries and limited regulation. Still, fishing and 1970s boom of populous fisheries and limited regulation. Still, fishing and aquaculture continue to employ about 400 people, some of them second and third aquaculture continue to employ about 400 people, some of them second and third generation fishermen, and generate hundreds of other jobs in Humboldt County. generation fishermen, and generate hundreds of other jobs in Humboldt County. The “Prosperity! The North Strategy” is the title of the overall economic The “Prosperity! The North Strategy” is the title of the overall economic development strategy that Humboldt County has developed with the direction of development strategy that Humboldt County has developed with the direction of more than 300 business and community people. The strategy aims to bring more than 300 business and community people. The strategy aims to bring forward growth and sustainability and build capacity to compete in the global forward growth and sustainability and build capacity to compete in the global market place. It contains action lines for i) finding new sources of funding for market place. It contains action lines for i) finding new sources of funding for marine fisheries-related research; ii) addressing the regulatory complexity faced marine fisheries-related research; ii) addressing the regulatory complexity faced by businesses for environmental compliance; iii) developing a Centre of by businesses for environmental compliance; iii) developing a Centre of Excellence for research, public education, and tourism from the counties coastal Excellence for research, public education, and tourism from the counties coastal waters; iv) stimulating product development aimed at both the broader regional waters; iv) stimulating product development aimed at both the broader regional commercial markets and emerging local niche markets (farmer’s markets, organic commercial markets and emerging local niche markets (farmer’s markets, organic markets, etc.); v) increasing harvesting and processing cohesion; vi) improving markets, etc.); v) increasing harvesting and processing cohesion; vi) improving transportation for market access; vii) upgrading port facilities; viii) reviewing transportation for market access; vii) upgrading port facilities; viii) reviewing zoning regulations relevant to marine industries. The eight areas of action follow zoning regulations relevant to marine industries. The eight areas of action follow directly from a well-articulated vision and analysis of existing opportunities. directly from a well-articulated vision and analysis of existing opportunities. In 2005, there were 67 establishments within the fishing and aquaculture In 2005, there were 67 establishments within the fishing and aquaculture cluster. While the number of employees decreased in two years (2003-2005), the cluster. While the number of employees decreased in two years (2003-2005), the average wages rose by 21.7%. The cluster represents 1% of the total economy average wages rose by 21.7%. The cluster represents 1% of the total economy and 2% of the base economy in Humboldt County. The export industries of the and 2% of the base economy in Humboldt County. The export industries of the Humboldt County grew wages 11.2% and drive the local economy. Humboldt County grew wages 11.2% and drive the local economy.

Source: The North Coast Prosperity Network (2003), “Fisheries, Fish Processing & Source: The North Coast Prosperity Network (2003), “Fisheries, Fish Processing & Aquaculture Industry Cluster Work-Plan 2002-2007”, Draft Document, Aquaculture Industry Cluster Work-Plan 2002-2007”, Draft Document, http://northcoastprosperity.com/files/webfm/contents/fishworkplan.pdf, http://northcoastprosperity.com/files/webfm/contents/fishworkplan.pdf, accessed 30 September 2009 accessed 30 September 2009

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The Bío Bío Region was among the first regions to establish a regional The Bío Bío Region was among the first regions to establish a regional co-ordination committee for science, technology and innovation, taking co-ordination committee for science, technology and innovation, taking advantage of the newly-added concern for regional economic development advantage of the newly-added concern for regional economic development by CONICYT, the National Commission for Scientific and Technological by CONICYT, the National Commission for Scientific and Technological Research. The result was the creation of CORECYT (Consejo Regional de Research. The result was the creation of CORECYT (Consejo Regional de Ciencia y Tecnología), Chile’s first regional council for science and Ciencia y Tecnología), Chile’s first regional council for science and technology. CORECYT’s mandate is to co-ordinate, promote, articulate and technology. CORECYT’s mandate is to co-ordinate, promote, articulate and implement the regional dimensions of science, technology and innovation implement the regional dimensions of science, technology and innovation policy. In practice it has played a role in bringing more inputs from higher policy. In practice it has played a role in bringing more inputs from higher education institutions into the policy process, and, along with Innova education institutions into the policy process, and, along with Innova Bío Bío, promoting the identification of regional research priorities. The Bío Bío, promoting the identification of regional research priorities. The results of these early efforts have been to send a strong signal about the results of these early efforts have been to send a strong signal about the importance of innovation for regional economic development and the importance of innovation for regional economic development and the commitment of the Regional Government. commitment of the Regional Government. A notable strength of innovation in the Bío Bío Region is the high A notable strength of innovation in the Bío Bío Region is the high degree of willingness of regional stakeholders to participate in the dialogue degree of willingness of regional stakeholders to participate in the dialogue on public policy for innovation and to engage their institutions in the policy on public policy for innovation and to engage their institutions in the policy formulation processes which creates the conditions for a widely shared formulation processes which creates the conditions for a widely shared commitment to innovation as a principal tool for regional development. commitment to innovation as a principal tool for regional development. As a result of the vigorous policy dialogue, the region finds itself with As a result of the vigorous policy dialogue, the region finds itself with an articulated strategy for innovation, and a clear set of long-term goals an articulated strategy for innovation, and a clear set of long-term goals (ARIDP, 2008). These include: (ARIDP, 2008). These include: • Raising the quality of human capital • Raising the quality of human capital • Increased level of innovation and technology development • Increased level of innovation and technology development • Increased decentralisation • Increased decentralisation • Growth, diversification, improved competitiveness and employment • Growth, diversification, improved competitiveness and employment • Increased regional integration • Increased regional integration The Agenda for Innovation and Regional Competitiveness seeks to The Agenda for Innovation and Regional Competitiveness seeks to integrate specific innovation goals with the overall plan for economic integrate specific innovation goals with the overall plan for economic development, whose time horizon extends through 2015. In addition, the development, whose time horizon extends through 2015. In addition, the overall agenda has a short and medium term complement in the Programme overall agenda has a short and medium term complement in the Programme for Improvement of Competitiveness (Planes de Mejoramiento de la for Improvement of Competitiveness (Planes de Mejoramiento de la Competitividad, or PMC’s in their Spanish acronyms). These plans pertain Competitividad, or PMC’s in their Spanish acronyms). These plans pertain to specific sectors, set concrete goals, contain targets and indicators, and to specific sectors, set concrete goals, contain targets and indicators, and have assigned specific responsibilities for implementation to organisations have assigned specific responsibilities for implementation to organisations and individuals. Furthermore, the PMCs were created through systematic and individuals. Furthermore, the PMCs were created through systematic attempts to translate the vision into effective practice. The ARIDP initiated attempts to translate the vision into effective practice. The ARIDP initiated two important consultancies, one with a regional and one with an two important consultancies, one with a regional and one with an international firm, which led to the identification of priority sectors. These international firm, which led to the identification of priority sectors. These

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consultancies sought to maximise the use of empirical data in the consultancies sought to maximise the use of empirical data in the determination of the most appropriate targets for policies and interventions. determination of the most appropriate targets for policies and interventions. The commitment to empirical analytics is a strong advantage of the Bío Bío The commitment to empirical analytics is a strong advantage of the Bío Bío Region’s approach to innovation, and one that will serve it well if it is Region’s approach to innovation, and one that will serve it well if it is continued and refined in the future. Finally, the identification process was continued and refined in the future. Finally, the identification process was participatory and drew on the expertise of and inputs from a wide range of participatory and drew on the expertise of and inputs from a wide range of stakeholders from business, higher education institutions, government, and stakeholders from business, higher education institutions, government, and civic organisations. civic organisations. The systematic and empirical nature of the identification of priority The systematic and empirical nature of the identification of priority sectors deserves commendation; many national governments that claim sectors deserves commendation; many national governments that claim concern for innovation are unable to translate their general intentions into concern for innovation are unable to translate their general intentions into specific plans and agendas. The Bío Bío Region deserves recognition for its specific plans and agendas. The Bío Bío Region deserves recognition for its concern to make innovation effective at the micro-level through specific concern to make innovation effective at the micro-level through specific actions. actions. Later parts of this chapter will critique specific aspects of the PMCs: Later parts of this chapter will critique specific aspects of the PMCs: these critiques should serve to reinforce their importance, their central role these critiques should serve to reinforce their importance, their central role and the need for their continuous improvement. They should not be and the need for their continuous improvement. They should not be considered a criticism of the instruments or their achievements to date. It considered a criticism of the instruments or their achievements to date. It should also be noted that the effectiveness of higher education institutions in should also be noted that the effectiveness of higher education institutions in contributing to innovation cannot be seen separately from the quality of contributing to innovation cannot be seen separately from the quality of innovation policy itself. The analysis and recommendations will consider innovation policy itself. The analysis and recommendations will consider both subjects. both subjects. Finally, the Bío Bio Region has been one of the first regions outside of Finally, the Bío Bio Region has been one of the first regions outside of the OECD member countries to avail itself of a review of the contribution of the OECD member countries to avail itself of a review of the contribution of higher education to regional development. This is further signal of the higher education to regional development. This is further signal of the seriousness and dedication of the region’s policymakers to taking full seriousness and dedication of the region’s policymakers to taking full advantage of the potential of innovation-based growth. advantage of the potential of innovation-based growth.

3.2 Specific strengths and contributions from higher education 3.2 Specific strengths and contributions from higher education institutions institutions

In Chile, innovation investment focuses on public R&D: 40% of the In Chile, innovation investment focuses on public R&D: 40% of the total R&D expenditure is carried out by universities mainly located in the total R&D expenditure is carried out by universities mainly located in the metropolitan region of Santiago where two largest research intensive metropolitan region of Santiago where two largest research intensive universities account for a large share of university performed R&D. universities account for a large share of university performed R&D. Many indicators designate the Bío Bío Region as the country’s second Many indicators designate the Bío Bío Region as the country’s second strongest region for higher education and research. This is supported by a strongest region for higher education and research. This is supported by a variety of empirical measures. variety of empirical measures. In knowledge production, the Bío Bío Region produced in 2008 a In knowledge production, the Bío Bío Region produced in 2008 a greater proportion of published papers than would be predicted by its share greater proportion of published papers than would be predicted by its share

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of national population (13.1% versus 12%). More importantly, the rate of of national population (13.1% versus 12%). More importantly, the rate of production in the region has grown significantly faster than the national production in the region has grown significantly faster than the national average over the past two decades. Publications have increased in Chile by a average over the past two decades. Publications have increased in Chile by a factor of 34 since 1988, but by more than a factor of 50 in the Bío Bío factor of 34 since 1988, but by more than a factor of 50 in the Bío Bío Region. The Citation Impact is slightly below national averages, which are Region. The Citation Impact is slightly below national averages, which are heavily influenced by the large research universities in Santiago. With heavily influenced by the large research universities in Santiago. With respect to patents, the Bío Bío Region over performs; it accounted for 29% respect to patents, the Bío Bío Region over performs; it accounted for 29% of all patents from universities in the period 1995-2007. The University of of all patents from universities in the period 1995-2007. The University of Concepción continues to be the country’s top higher education institution for Concepción continues to be the country’s top higher education institution for patent production. patent production. The region has 24 active research centres based at higher education The region has 24 active research centres based at higher education institutions, involving five different institutions. The region is also institutions, involving five different institutions. The region is also represented in six of 19 recognised innovation consortia, although here represented in six of 19 recognised innovation consortia, although here again the presence of the University of Concepción is the critical factor. again the presence of the University of Concepción is the critical factor. Specific centres are devoted to regional priorities, such as fisheries and Specific centres are devoted to regional priorities, such as fisheries and forestry, and these exhibit strong and growing ties with industry. Schools of forestry, and these exhibit strong and growing ties with industry. Schools of business administration take an active interest in economic development and business administration take an active interest in economic development and innovation issues, contributing expertise to policy dialogues and seeking innovation issues, contributing expertise to policy dialogues and seeking increasingly large roles within projects. increasingly large roles within projects.

Table 3.1. Number and distribution of patents registered by Chilean universities by Table 3.1. Number and distribution of patents registered by Chilean universities by institution (1995-2007) institution (1995-2007)

Universities Number National Regional Universities Number National Regional share % share % share % share % University of Concepción 77 26.6 90.6 University of Concepción 77 26.6 90.6 Federico Santa María Technical University 52 17.9 Federico Santa María Technical University 52 17.9 University of Chile 38 13.1 University of Chile 38 13.1 Pontificia Universidad Católica de Chile 30 10.3 Pontificia Universidad Católica de Chile 30 10.3 Universidad de Santiago de Chile 21 7.2 Universidad de Santiago de Chile 21 7.2 University of Antofagasta 12 4.1 University of Antofagasta 12 4.1 Pontificia Universidad Católica de Valparaíso 10 3.4 Pontificia Universidad Católica de Valparaíso 10 3.4 Universidad Austral de Chile 8 2.8 Universidad Austral de Chile 8 2.8 Universidad Tecnológica Metropolitana 6 2.1 Universidad Tecnológica Metropolitana 6 2.1 Universidad Católica del Norte 5 1.7 Universidad Católica del Norte 5 1.7 University of Bío Bío 4 1.4 4.7 University of Bío Bío 4 1.4 4.7 Universidad Católica de la Santísima Concepción 4 1.4 4.7 Universidad Católica de la Santísima Concepción 4 1.4 4.7 Others 23 7.9 Others 23 7.9 Total 290 100.0 100.0 Total 290 100.0 100.0 Note: The Universidad de Concepción had more than 100 patents as of April 2009. Note: The Universidad de Concepción had more than 100 patents as of April 2009.

Source: Departamento de Propiedad Industrial (DPI), Ministerio de Economía. Source: Departamento de Propiedad Industrial (DPI), Ministerio de Economía.

University administrators are committed to the innovation agenda. The University administrators are committed to the innovation agenda. The University of Concepción has an Office for Technology Development University of Concepción has an Office for Technology Development

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(Unidad de Desarrollo Tecnológico, or UDT) functioning continuously (Unidad de Desarrollo Tecnológico, or UDT) functioning continuously since 1996. Universidad del Desarrollo maintains an active Centre for since 1996. Universidad del Desarrollo maintains an active Centre for Innovation and Entrepreneurial Development (Centro de Innovación y Innovation and Entrepreneurial Development (Centro de Innovación y Desarrollo Empresarial, or CIDE). Again, thanks largely to the presence of Desarrollo Empresarial, or CIDE). Again, thanks largely to the presence of the University of Concepción, Bío Bío has a significant percentage of the University of Concepción, Bío Bío has a significant percentage of Chile’s PhD programmes, enrolment and PhD-holding faculty. Chile’s PhD programmes, enrolment and PhD-holding faculty. Most science, technology and innovation indicators in Chile are Most science, technology and innovation indicators in Chile are collected only at the national level and show that Chile is lagging behind collected only at the national level and show that Chile is lagging behind international comparisons in many measures. This has provoked a national international comparisons in many measures. This has provoked a national policy response through the creation of the National Council of Innovation policy response through the creation of the National Council of Innovation for Competitiveness (Consejo Nacional de Innovación para la for Competitiveness (Consejo Nacional de Innovación para la Competitividad or CNIC in its Spanish acronym). The higher education Competitividad or CNIC in its Spanish acronym). The higher education sector in the Bío Bío Region is above national standards in terms of sector in the Bío Bío Region is above national standards in terms of innovative capacity but so far the focus has been on knowledge production innovative capacity but so far the focus has been on knowledge production rather than on knowledge transfer. In addition, there is a strong desire within rather than on knowledge transfer. In addition, there is a strong desire within higher education institutions to be major contributors to innovation and higher education institutions to be major contributors to innovation and growth in the Bío Bío Region. growth in the Bío Bío Region.

3.3 The innovation system in the Bío Bío Region – areas for 3.3 The innovation system in the Bío Bío Region – areas for improvement improvement

The inclusion of innovation as a priority in the Bío Bío Region The inclusion of innovation as a priority in the Bío Bío Region originates with the realisation that the region’s growth rates were originates with the realisation that the region’s growth rates were consistently lagging behind national averages. As a result, the region’s consistently lagging behind national averages. As a result, the region’s ability to reduce poverty and raise living standards was not keeping pace ability to reduce poverty and raise living standards was not keeping pace with those of Chile as a whole. Although these national averages will be with those of Chile as a whole. Although these national averages will be strongly influenced by specific growth spurts in mining, fisheries, fruit, strongly influenced by specific growth spurts in mining, fisheries, fruit, wine, and other agricultural products, keeping pace with national growth is a wine, and other agricultural products, keeping pace with national growth is a reasonable goal for the Bío Bío Region and one it should be able to reach. reasonable goal for the Bío Bío Region and one it should be able to reach. Effective innovation strategies need to be implemented consistently over Effective innovation strategies need to be implemented consistently over the medium-to long-term basis before benefits appear. While at the time of the medium-to long-term basis before benefits appear. While at the time of the review visit in August 2009 it was premature to judge the overall the review visit in August 2009 it was premature to judge the overall effectiveness of the Bío Bío Region’s innovation strategy and to confirm effectiveness of the Bío Bío Region’s innovation strategy and to confirm whether it helps the region to converge on national growth rates, it is whether it helps the region to converge on national growth rates, it is important to examine the effectiveness of initiatives to date in order important to examine the effectiveness of initiatives to date in order determine that the region is moving in the right direction. It is also important determine that the region is moving in the right direction. It is also important to lay the foundations for rigorous evaluation of the innovation strategy over to lay the foundations for rigorous evaluation of the innovation strategy over time. time. The Bío Bío Region has made impressive progress in the formulation The Bío Bío Region has made impressive progress in the formulation and implementation of innovation policy. Many steps taken to date have and implementation of innovation policy. Many steps taken to date have been commendable. These include i) the construction of a long-term vision, been commendable. These include i) the construction of a long-term vision,

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ii) the linking of innovation policy to overall economic development policy, ii) the linking of innovation policy to overall economic development policy, iii) the translation of policy goals into specific actions plans and iv) the iii) the translation of policy goals into specific actions plans and iv) the participatory nature of the process. The long-term goals are also solid and participatory nature of the process. The long-term goals are also solid and well articulated. These include: i) raising the quality of human resources; well articulated. These include: i) raising the quality of human resources; ii) raising the rates of technological innovation; iii) strengthening the ii) raising the rates of technological innovation; iii) strengthening the decentralisation process; and iv) strengthening the productive sector, decentralisation process; and iv) strengthening the productive sector, competitiveness and rates of value added in the regional economy. These competitiveness and rates of value added in the regional economy. These achievements put the Bío Bío Region ahead of many regions and nations achievements put the Bío Bío Region ahead of many regions and nations whose innovation policies do not move past general statements of intentions. whose innovation policies do not move past general statements of intentions. The region can strengthen the effectiveness of policy and deepen a The region can strengthen the effectiveness of policy and deepen a rigorous evaluation process whose results can provide feedback for policy rigorous evaluation process whose results can provide feedback for policy adjustment through: adjustment through: • Review of the public sector role in innovation and maximising • Review of the public sector role in innovation and maximising efficiency efficiency • Continuous improvement of empirical inputs into policy • Continuous improvement of empirical inputs into policy • Building the central focus for innovation in the region • Building the central focus for innovation in the region • Aligning incentives in the higher education institutions • Aligning incentives in the higher education institutions

3.3.1 Review of the public sector role in innovation and maximising 3.3.1 Review of the public sector role in innovation and maximising efficiency efficiency In many of the most innovative regions of the world, economic In many of the most innovative regions of the world, economic dynamism is based on the agility of private sector actors operating in highly dynamism is based on the agility of private sector actors operating in highly competitive environments. Innovation in these contexts is necessary for firm competitive environments. Innovation in these contexts is necessary for firm survival, success is generously rewarded in monetary terms and firms that survival, success is generously rewarded in monetary terms and firms that cannot compete do not survive. In this environment, governments fund cannot compete do not survive. In this environment, governments fund knowledge creation/basic research and provide a strong judicial system to knowledge creation/basic research and provide a strong judicial system to ensure fair adjudication of property rights (Pontin, 2008). ensure fair adjudication of property rights (Pontin, 2008). In the absence of private sector partners, the innovation model in the In the absence of private sector partners, the innovation model in the Bío Bío Region has a strong focus on the national and regional governments Bío Bío Region has a strong focus on the national and regional governments as main actors. Beyond setting goals, funding basic research, and ensuring a as main actors. Beyond setting goals, funding basic research, and ensuring a competitive environment with a level playing field, the public sector in the competitive environment with a level playing field, the public sector in the region determines the priorities for innovation, and is the principal funder of region determines the priorities for innovation, and is the principal funder of innovation. innovation. While public and private support for R&D may be complementary in the While public and private support for R&D may be complementary in the long term, there is a dearth of evidence to suggest that in developing long term, there is a dearth of evidence to suggest that in developing countries innovation models with strong reliance on public actors have the countries innovation models with strong reliance on public actors have the same track records of success as those that are driven primarily by actors same track records of success as those that are driven primarily by actors from the private sector (David, Halle, and Toole, 2000). While justifications from the private sector (David, Halle, and Toole, 2000). While justifications

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often exist for a larger role for the government in the “initial phases” of the often exist for a larger role for the government in the “initial phases” of the implementation of an innovation strategy, it is useful to consider the implementation of an innovation strategy, it is useful to consider the following implications associated to the strong government role: following implications associated to the strong government role: • The Bío Bío Region is investing in the order of tens of millions of • The Bío Bío Region is investing in the order of tens of millions of US dollars per year in innovation. It is expected that these US dollars per year in innovation. It is expected that these investments will generate a positive return and produce more than investments will generate a positive return and produce more than their time-adjusted value in future benefits. It is expected that the their time-adjusted value in future benefits. It is expected that the investments will “payback” the public investment through the investments will “payback” the public investment through the generation of increased private sector activity (and valuable generation of increased private sector activity (and valuable publicly-provided advances) that would not have come to be without publicly-provided advances) that would not have come to be without the initial government investments. As long as public resources are the initial government investments. As long as public resources are being invested in innovation, the agencies should foster a sense of being invested in innovation, the agencies should foster a sense of greater responsibility to show an overall positive return to the public greater responsibility to show an overall positive return to the public investment. At the time of the review, there was limited evidence of investment. At the time of the review, there was limited evidence of a “payback” mentality among public officials involved in a “payback” mentality among public officials involved in innovation, clients and beneficiaries. It is important for the ARIDP, innovation, clients and beneficiaries. It is important for the ARIDP, Innova Bío Bío, CORECYT and other regional actors to counter the Innova Bío Bío, CORECYT and other regional actors to counter the idea that any positive return, regardless of whether it exceeded the idea that any positive return, regardless of whether it exceeded the government investment, is a success. government investment, is a success. • The large public role in the regional innovation system may lead to • The large public role in the regional innovation system may lead to the funding of innovations which are not commercially viable the funding of innovations which are not commercially viable without subsidies. This may distort the idea of innovation away without subsidies. This may distort the idea of innovation away from its core as “commercially useful knowledge” toward a broader from its core as “commercially useful knowledge” toward a broader definition of “new knowledge.” Measures should be put in place to definition of “new knowledge.” Measures should be put in place to ensure that government funding for innovation mimic as closely as ensure that government funding for innovation mimic as closely as possible a reasonable approximation of private sector conditions. No possible a reasonable approximation of private sector conditions. No benefits are gained by funding uneconomic innovations, unless the benefits are gained by funding uneconomic innovations, unless the innovation has a value as a public good that clearly justifies its innovation has a value as a public good that clearly justifies its subsidisation. At the same time, higher education institutions must subsidisation. At the same time, higher education institutions must go beyond their traditional role of knowledge producers and go beyond their traditional role of knowledge producers and embrace a more robust conception of innovation in which the embrace a more robust conception of innovation in which the responsibility for both knowledge creation and commercialisation is responsibility for both knowledge creation and commercialisation is more evenly shared among actors. more evenly shared among actors. • There is a danger that a publicly-driven innovation system undercuts • There is a danger that a publicly-driven innovation system undercuts its own goals of developing entrepreneurship. By creating its own goals of developing entrepreneurship. By creating expectations of national or regional government subsidies to expectations of national or regional government subsidies to innovation, the government sends signals to potential entrepreneurs innovation, the government sends signals to potential entrepreneurs about the levels of competition they are likely to face. There is about the levels of competition they are likely to face. There is evidence that the strong government presence in the Bío Bío Region evidence that the strong government presence in the Bío Bío Region is influencing entrepreneurship attitudes. The risk is that the is influencing entrepreneurship attitudes. The risk is that the measure of success becomes its ability to attract public funding for measure of success becomes its ability to attract public funding for

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an idea, not its eventual successful expression in the market as a an idea, not its eventual successful expression in the market as a product people want to buy. product people want to buy. • The most important drawback of a publically-centred system is that • The most important drawback of a publically-centred system is that it is likely to miss a crucial technical element: the dynamic role of it is likely to miss a crucial technical element: the dynamic role of the funders in determining the value of an innovation. By deciding the funders in determining the value of an innovation. By deciding whether to continue to fund an innovation, using their own money, whether to continue to fund an innovation, using their own money, venture capitalists and other financers provide a key service. venture capitalists and other financers provide a key service. Funders are often the most important vehicle that keeps innovators Funders are often the most important vehicle that keeps innovators focused on achieving success in the shortest time possible, or focused on achieving success in the shortest time possible, or abandoning the idea. When innovation systems are funded with abandoning the idea. When innovation systems are funded with public money, this source of pressure disappears, and with it an public money, this source of pressure disappears, and with it an important element of competitive stimulation. Some public important element of competitive stimulation. Some public programmes have found successful substitutes, through “sunset” programmes have found successful substitutes, through “sunset” clauses, tight deadlines, rigorous multi-stage review of proposals or clauses, tight deadlines, rigorous multi-stage review of proposals or other explicit attempts to mimic private sector funders, but these are other explicit attempts to mimic private sector funders, but these are the exception rather than the rule. Requirements for private sector the exception rather than the rule. Requirements for private sector counterpart contributions seldom provide solutions to this problem, counterpart contributions seldom provide solutions to this problem, as it is almost impossible to determine whether these funds are as it is almost impossible to determine whether these funds are really “fresh” or additional spending. Over the longer term, this really “fresh” or additional spending. Over the longer term, this substitution of public for private financing deprives innovators of substitution of public for private financing deprives innovators of specific expertise and may also delay the emergence of private specific expertise and may also delay the emergence of private sources of capital for innovation. As long as the government is sources of capital for innovation. As long as the government is providing equal or better financing conditions, private funders of providing equal or better financing conditions, private funders of innovation will have no incentive to enter the market. innovation will have no incentive to enter the market. • Even when a large public presence exists and is considered • Even when a large public presence exists and is considered necessary in the short-to-medium term, there is a need to find out necessary in the short-to-medium term, there is a need to find out whether it is using a full range of available instruments in the whether it is using a full range of available instruments in the normal public sector portfolio. These may include tax subsidies for normal public sector portfolio. These may include tax subsidies for R&D, “research in industry programmes,” provision of technical R&D, “research in industry programmes,” provision of technical services, vouchers for consulting, low interest loans, etc. The services, vouchers for consulting, low interest loans, etc. The Bío Bío Region has an over-reliance on projects as the main vehicle Bío Bío Region has an over-reliance on projects as the main vehicle for stimulating innovation and a tendency to measure success in for stimulating innovation and a tendency to measure success in innovation by the amount of (public) investment made, not the innovation by the amount of (public) investment made, not the amount of commercial return generated. For example in the 2008 amount of commercial return generated. For example in the 2008 Informe de Gestión of Innova Bío Bío report, measures of Informe de Gestión of Innova Bío Bío report, measures of investment are used as the yardstick of success, while it contains no investment are used as the yardstick of success, while it contains no indicators of output or impact. indicators of output or impact. Despite these caveats, the public model is appropriate for the Bío Bío Despite these caveats, the public model is appropriate for the Bío Bío Region now and will remain so in the immediate future. It is unrealistic to Region now and will remain so in the immediate future. It is unrealistic to expect the emergence of private sector financing entities and other players in expect the emergence of private sector financing entities and other players in the short- and medium-term. It is, however, important that those managing the short- and medium-term. It is, however, important that those managing

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the public model be aware of its inherent disadvantages over a private model the public model be aware of its inherent disadvantages over a private model (see Box 3.2), and take active steps to mitigate or eliminate these. The best (see Box 3.2), and take active steps to mitigate or eliminate these. The best means of keeping this on the policy agenda is through the construction of means of keeping this on the policy agenda is through the construction of efficiency/performance indicators for public agencies including higher efficiency/performance indicators for public agencies including higher education institutions involved in innovation. These indicators could education institutions involved in innovation. These indicators could include: include: • Time to process project applications • Time to process project applications • Cost to the proponent (in time and resources) of applying to various • Cost to the proponent (in time and resources) of applying to various public programmes public programmes • Administrative costs for the programmes, etc. • Administrative costs for the programmes, etc. The indicators should be measured and benchmarked against a set of The indicators should be measured and benchmarked against a set of credible comparators that include good private sector actors as well as top credible comparators that include good private sector actors as well as top public sector agencies. Speed is of the essence for innovation, so if public sector agencies. Speed is of the essence for innovation, so if authorities create programmes and instruments to substitute for the absent authorities create programmes and instruments to substitute for the absent private sector, these should seek the highest levels of efficiency. private sector, these should seek the highest levels of efficiency.

Box 3.2. Perceived weaknesses of government promotion Box 3.2. Perceived weaknesses of government promotion programmes programmes

• Poor co-ordination between institutions • Poor co-ordination between institutions • Lack of flexibility • Lack of flexibility • Lack of information • Lack of information • Duplication of effort • Duplication of effort • Inadequate design of incentives • Inadequate design of incentives • Excessive delays and bureaucracy • Excessive delays and bureaucracy • Lack of definition of baseline data or characteristics of target populations • Lack of definition of baseline data or characteristics of target populations • Weak monitoring and evaluation • Weak monitoring and evaluation • Inadequate programme management and oversight • Inadequate programme management and oversight • Low user satisfaction rates • Low user satisfaction rates • Few indicators of overall success or successful process management • Few indicators of overall success or successful process management • Limited impact on evaluation • Limited impact on evaluation

Source: Universidad Católica de la Santísima Concepción (2008), “Identification of Source: Universidad Católica de la Santísima Concepción (2008), “Identification of Competitive Sectors in the Bío Bío Region” Consultancy Report presented to the Competitive Sectors in the Bío Bío Region” Consultancy Report presented to the Regional Agency of Innovation and Productive Development, Concepción, 2 July, Regional Agency of Innovation and Productive Development, Concepción, 2 July, p. 66 and Annex 2. p. 66 and Annex 2.

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3.3.2 Continuous improvement of empirical inputs into policy 3.3.2 Continuous improvement of empirical inputs into policy The Bío Bío Region has made considerable progress in seeking to The Bío Bío Region has made considerable progress in seeking to underpin innovation policy with a strong foundation of empirical data. The underpin innovation policy with a strong foundation of empirical data. The ARIDP and other stakeholders have gone significantly farther in this than ARIDP and other stakeholders have gone significantly farther in this than many regional agencies worldwide. The quality of the work achieved to date many regional agencies worldwide. The quality of the work achieved to date is a reflection of this commitment to evidence-based policymaking. The is a reflection of this commitment to evidence-based policymaking. The UCSC Consultancy, the Agenda 2008-2012, and the PMCs all make UCSC Consultancy, the Agenda 2008-2012, and the PMCs all make significant use of the available data and seek to ground decisions in fact- significant use of the available data and seek to ground decisions in fact- based analysis. based analysis. The UCSC consultancy serves as the basis for the agenda and for the The UCSC consultancy serves as the basis for the agenda and for the selection of the three priority sectors – agriculture/food processing, tourism, selection of the three priority sectors – agriculture/food processing, tourism, and higher education – for first elaboration of the PMCs. As such it is and higher education – for first elaboration of the PMCs. As such it is critical to understand in detail the criteria used. critical to understand in detail the criteria used. The conceptual framework for analysis is robust, but there is an over- The conceptual framework for analysis is robust, but there is an over- reliance on key informant information. Moreover, the report does not reliance on key informant information. Moreover, the report does not provide information on the sample size, nor the professional profiles or provide information on the sample size, nor the professional profiles or backgrounds of the key informants. Nor does it mention the means of backgrounds of the key informants. Nor does it mention the means of resolving inherent conflicts of interest: those who have the greatest specific resolving inherent conflicts of interest: those who have the greatest specific knowledge of a given sub-sector are also those who are likely to be biased knowledge of a given sub-sector are also those who are likely to be biased toward its future potential, and they are the ones who would benefit from the toward its future potential, and they are the ones who would benefit from the sub-sector being chosen as a target for a competitiveness improvement sub-sector being chosen as a target for a competitiveness improvement programme. programme. In addition, an examination of the selection process shows that the In addition, an examination of the selection process shows that the selection was not based on neutral empirical data. Three criteria were used selection was not based on neutral empirical data. Three criteria were used for selection: i) potential economic impact; ii) competitiveness; and for selection: i) potential economic impact; ii) competitiveness; and iii) potential for future growth. The UCSC Consultancy Report shows iii) potential for future growth. The UCSC Consultancy Report shows 25 criteria in an index used to select the sectors. Of these 25, fifteen are 25 criteria in an index used to select the sectors. Of these 25, fifteen are “qualitative” assessments. However, beyond stating that these are the “qualitative” assessments. However, beyond stating that these are the opinions of business leaders and experts, no information is given regarding opinions of business leaders and experts, no information is given regarding about who made the qualitative judgments or on what basis. Additional two about who made the qualitative judgments or on what basis. Additional two factors relate to the number of projects approved in the respective areas. factors relate to the number of projects approved in the respective areas. While this indicator is important in some respects, it serves to reinforce the While this indicator is important in some respects, it serves to reinforce the supply-driven approach to innovation. The more empirical indications like supply-driven approach to innovation. The more empirical indications like level of employment, average salary levels, and most importantly, level of level of employment, average salary levels, and most importantly, level of growth and profitability of firms are swamped by the qualitative measures. growth and profitability of firms are swamped by the qualitative measures. Finally, information provided by the ARIDP states that of the three sectors Finally, information provided by the ARIDP states that of the three sectors chosen, economic impact was taken into consideration in only the food chosen, economic impact was taken into consideration in only the food processing sector. Higher education and tourism were selected on the basis processing sector. Higher education and tourism were selected on the basis of competitiveness and potential for growth, the two categories where the of competitiveness and potential for growth, the two categories where the criteria are almost exclusively qualitative and based on key informant criteria are almost exclusively qualitative and based on key informant information. information.

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The analysis of the competitiveness of the higher education sector is The analysis of the competitiveness of the higher education sector is based on the findings of regional experts, including a workshop attended by based on the findings of regional experts, including a workshop attended by 30 representatives of universities, institutes, businesses and the public 30 representatives of universities, institutes, businesses and the public sector. The competitiveness analysis in the higher education sector suffers sector. The competitiveness analysis in the higher education sector suffers from the lack of key empirical data and over-reliance of key informants from the lack of key empirical data and over-reliance of key informants from the sector and the region. Several key factors have been overlooked: from the sector and the region. Several key factors have been overlooked: • Historical data on enrolment increases has been used without noting • Historical data on enrolment increases has been used without noting that Chile is beginning to approach the saturation point for new that Chile is beginning to approach the saturation point for new entrants into tertiary education (national enrolment is now at 42% of entrants into tertiary education (national enrolment is now at 42% of the age group, while government goals are to reach 50% of the age the age group, while government goals are to reach 50% of the age group). There has been no discussion what will happen when this group). There has been no discussion what will happen when this additional 8% of the age group matriculate or whether the additional 8% of the age group matriculate or whether the achievement of a “steady state” rate of enrolment (at 50% of the age achievement of a “steady state” rate of enrolment (at 50% of the age group) would be sufficient for the Bío Bío Region to realise its goals group) would be sufficient for the Bío Bío Region to realise its goals in the higher education area. in the higher education area. • Most higher education growth is taking place among first generation • Most higher education growth is taking place among first generation students with relatively low PSU (national university entrance students with relatively low PSU (national university entrance exam) scores who are likely to study in technical training centres exam) scores who are likely to study in technical training centres (CFTs). In fact, the comparative advantages in higher education are (CFTs). In fact, the comparative advantages in higher education are connected to universities, advanced training, and research. Two connected to universities, advanced training, and research. Two radically different strategies would be needed to serve these two radically different strategies would be needed to serve these two different goals, but the differences are not discussed. different goals, but the differences are not discussed. • The existence of the Becas Chile Programme has been ignored. • The existence of the Becas Chile Programme has been ignored. Becas Chile has greatly expanded (by a factor of 10) the number of Becas Chile has greatly expanded (by a factor of 10) the number of scholarships available for students to pursue PhDs in high quality scholarships available for students to pursue PhDs in high quality universities abroad. The result of this national policy will be to universities abroad. The result of this national policy will be to create significantly greater competition among universities for the create significantly greater competition among universities for the pool of talented graduate students to populate research-based pool of talented graduate students to populate research-based doctoral programmes. doctoral programmes. • There are strong differences in the views of the value of tertiary • There are strong differences in the views of the value of tertiary education between university stakeholders and stakeholders from education between university stakeholders and stakeholders from the business sector. These surveys showed a marked tendency for the business sector. These surveys showed a marked tendency for tertiary education stakeholders to have a much higher opinion of the tertiary education stakeholders to have a much higher opinion of the value added of their products than employers or members of the value added of their products than employers or members of the business sector. The resulting biases needed to be controlled in order business sector. The resulting biases needed to be controlled in order not to overstate the potential value of tertiary education. not to overstate the potential value of tertiary education. By looking mostly at historical data and by over-reliance on key By looking mostly at historical data and by over-reliance on key informants from the region, the analysis appears to have failed to consider informants from the region, the analysis appears to have failed to consider some potentially crucial issues in competitiveness. To improve the situation some potentially crucial issues in competitiveness. To improve the situation the region should: the region should:

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• Seek a balanced view of key informants from outside the region as • Seek a balanced view of key informants from outside the region as well as from inside the region well as from inside the region • List the institutional affiliations and professional profiles of key • List the institutional affiliations and professional profiles of key informants to provide a picture of who is giving their opinion informants to provide a picture of who is giving their opinion • Seek to limit the number of qualitative parameters within the • Seek to limit the number of qualitative parameters within the constructed indices or combine these into a single index that is then constructed indices or combine these into a single index that is then balanced by more objective data balanced by more objective data No perfect science exists for selecting priority sectors, nor can one find No perfect science exists for selecting priority sectors, nor can one find any foolproof formula for mixing key informant and qualitative data with any foolproof formula for mixing key informant and qualitative data with neutral statistical analysis. However, given the role of clusters in the Bío Bio neutral statistical analysis. However, given the role of clusters in the Bío Bio Region’s innovation strategy, the need for larger amounts of better data on Region’s innovation strategy, the need for larger amounts of better data on firm characteristics and performance should be a key priority. Only limited firm characteristics and performance should be a key priority. Only limited detailed information on firm characteristics and performance was included detailed information on firm characteristics and performance was included in either the regional self-evaluation report for the OECD review or the in either the regional self-evaluation report for the OECD review or the basic documents for innovation policy. For instance, given the prominence basic documents for innovation policy. For instance, given the prominence of forestry in producing the regions exports, it is necessary to develop a of forestry in producing the regions exports, it is necessary to develop a complete analyses of the number of firms in the sector (disaggregated by complete analyses of the number of firms in the sector (disaggregated by subsector), the number of employees per firm, measures of human capital subsector), the number of employees per firm, measures of human capital per employee, employee tenure and wage data, longitudinal analysis of firm per employee, employee tenure and wage data, longitudinal analysis of firm creation and survival rates, measure of overall profitability, profitability per creation and survival rates, measure of overall profitability, profitability per employee, productivity growth and inter-firm sales. employee, productivity growth and inter-firm sales. The Bío Bío Region performs very poorly in creating new firms from The Bío Bío Region performs very poorly in creating new firms from the research. In fact, only two regions in Chile have worse figures for firm the research. In fact, only two regions in Chile have worse figures for firm creation. For the regional authorities to understand this large potential creation. For the regional authorities to understand this large potential obstacle to a cluster strategy, more and better firm-level information is obstacle to a cluster strategy, more and better firm-level information is necessary. necessary. Very few regions start with high levels of good quality data readily Very few regions start with high levels of good quality data readily available. In most cases a learning process occurs through which regional available. In most cases a learning process occurs through which regional innovation authorities and stakeholders: innovation authorities and stakeholders: • Educate themselves about sources of key data needed for analysis • Educate themselves about sources of key data needed for analysis (tax authorities are the most frequently “discovered” source of this (tax authorities are the most frequently “discovered” source of this type of information). type of information). • Begin working with national and regional statistical agencies to • Begin working with national and regional statistical agencies to improve the amount and quality of information collected from improve the amount and quality of information collected from standard industrial and innovation surveys. standard industrial and innovation surveys. • Commission independent studies to systematically collect • Commission independent studies to systematically collect complementary data. complementary data.

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The degree of resources, time and dedication devoted to improving data The degree of resources, time and dedication devoted to improving data sources testify to the complexity of the process of encouraging the sources testify to the complexity of the process of encouraging the emergence of cluster and strengthen value chains. Without detailed emergence of cluster and strengthen value chains. Without detailed information on sector and sub-sector performance, there is a risk to fall back information on sector and sub-sector performance, there is a risk to fall back into anecdotal evidence to substitute for the analysis which should underpin into anecdotal evidence to substitute for the analysis which should underpin policy. policy. There is also a need for stronger monitoring and evaluation of There is also a need for stronger monitoring and evaluation of innovation outcomes and impacts. It should become the norm for cost- innovation outcomes and impacts. It should become the norm for cost- benefit and cost-effectiveness evaluations to accompany projects. Innovation benefit and cost-effectiveness evaluations to accompany projects. Innovation funding agencies may wish to require a certain percentage of resources (as funding agencies may wish to require a certain percentage of resources (as much as 3%) to be spent on monitoring and evaluation. Projects whose much as 3%) to be spent on monitoring and evaluation. Projects whose proponents do not complete evaluations should be prevented from seeking proponents do not complete evaluations should be prevented from seeking additional funding. As data sources are improved, they should be additional funding. As data sources are improved, they should be incorporated into and consequentially used for monitoring and evaluation. incorporated into and consequentially used for monitoring and evaluation.

3.3.3 Building the central focus for innovation in the Bío Bío 3.3.3 Building the central focus for innovation in the Bío Bío Region Region The Bío Bío Region has articulated a strong set of long-term goals for The Bío Bío Region has articulated a strong set of long-term goals for its innovation policy. The third area for potential improvement involves how its innovation policy. The third area for potential improvement involves how the region translates these long-term goals into short-and medium-term the region translates these long-term goals into short-and medium-term plans. The ARIDP has made commendable efforts to do this in a systematic plans. The ARIDP has made commendable efforts to do this in a systematic manner, using competent consultancies and broad stakeholder involvement. manner, using competent consultancies and broad stakeholder involvement. This has been successful in many aspects, and has positioned the Bío Bío This has been successful in many aspects, and has positioned the Bío Bío Region beyond many regions which find themselves in pursuing innovation Region beyond many regions which find themselves in pursuing innovation goals. goals.

However, a few additional factors require more in-depth consideration. However, a few additional factors require more in-depth consideration. The first is to identify a central focus for the short-and medium-term goals The first is to identify a central focus for the short-and medium-term goals in innovation goals. International experience shows the particular in innovation goals. International experience shows the particular importance for small regions – the Bío Bío Region has less than 2 million importance for small regions – the Bío Bío Region has less than 2 million inhabitants – to be judiciously selective in their innovation goals and to stick inhabitants – to be judiciously selective in their innovation goals and to stick to these goals over time. Small regions that have successfully implemented to these goals over time. Small regions that have successfully implemented innovation policies have found a “central focus” or a “unifying theme” that innovation policies have found a “central focus” or a “unifying theme” that ties their long-term goals to their short-and medium-term strategies. These ties their long-term goals to their short-and medium-term strategies. These may range from export-oriented advanced manufacturing (Catalonia), may range from export-oriented advanced manufacturing (Catalonia), machine tools, aerospace, and transport (early Basque Country strategy) or machine tools, aerospace, and transport (early Basque Country strategy) or advanced health services and telecommunication and electronic equipment advanced health services and telecommunication and electronic equipment manufacturing (Meuse-Rhine Triangle of Belgium, the Netherlands, and manufacturing (Meuse-Rhine Triangle of Belgium, the Netherlands, and Germany) to university-based biomedical research (Research Triangle, Germany) to university-based biomedical research (Research Triangle, North Carolina, United States). By narrowing their focus to specific areas, North Carolina, United States). By narrowing their focus to specific areas, these regions sustained their commitment to successful innovation. As they these regions sustained their commitment to successful innovation. As they

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built success in the initial areas, they were able to expand the strategy over built success in the initial areas, they were able to expand the strategy over time. time. The Bío Bío Region has created the conditions for this unifying theme to The Bío Bío Region has created the conditions for this unifying theme to emerge, but has not yet successfully identified the theme. The selection of emerge, but has not yet successfully identified the theme. The selection of nine strategic sectors by the ARIDP Strategic Council in November 2007 nine strategic sectors by the ARIDP Strategic Council in November 2007 would have been an appropriate time to consider and choose the best central would have been an appropriate time to consider and choose the best central focus for the Bío Bío Region. However, the three sectors chosen for initial focus for the Bío Bío Region. However, the three sectors chosen for initial emphasis represent a diverse range of goals and approaches which are emphasis represent a diverse range of goals and approaches which are displayed in Table 3.2. displayed in Table 3.2.

Table 3.2. ARIDP strategic sectors and their implications Table 3.2. ARIDP strategic sectors and their implications

Human capital Human capital Sector Goal Business focus Caveats Sector Goal Business focus Caveats needs needs Tourism To improve the Natural advantages. Considerable efforts Human capital Tourism To improve the Natural advantages. Considerable efforts Human capital infrastructure and “Head-to-head” needed to upgrade upgrading among infrastructure and “Head-to-head” needed to upgrade upgrading among marketing of the region’s competitiveness. the quality of natural secondary school marketing of the region’s competitiveness. the quality of natural secondary school existing advantages. amenities, hotel and CFT graduates. existing advantages. amenities, hotel and CFT graduates. No sustained focus No sustained focus To capture a larger facilities and hotel To capture a larger facilities and hotel on technology personnel to attract on technology personnel to attract market share of upgrading. market share of upgrading. meetings, conventions tourists. meetings, conventions tourists. and expositions. Large business and and expositions. Large business and investments investments necessary. necessary. Agriculture / To develop an SMEs and smaller Considerable efforts Human capital Agriculture / To develop an SMEs and smaller Considerable efforts Human capital food processing agricluster (berries, producers. needed to forge an requirements focus food processing agricluster (berries, producers. needed to forge an requirements focus honey, milk and meat). identity as a national on the lower honey, milk and meat). identity as a national on the lower agro-alimentary spectrum of skills agro-alimentary spectrum of skills production pole. gained in secondary production pole. gained in secondary Potentially and technical Potentially and technical competing goals education. competing goals education. with forestry in with forestry in terms of land use. terms of land use. Higher To expand HE Transversal across Necessary to Considerable Higher To expand HE Transversal across Necessary to Considerable Education, enrolment. many sectors. capture increasing requirements for Education, enrolment. many sectors. capture increasing requirements for Science and To develop science, amounts of national advanced human Science and To develop science, amounts of national advanced human Technology technology and research resources. capital. Technology technology and research resources. capital. innovation and research innovation and research capacity within capacity within nationally-recognised nationally-recognised universities. universities. The Bío Bío Region is hence seeking multiple goals through its The Bío Bío Region is hence seeking multiple goals through its innovation policies and it is difficult to identify what are the most important innovation policies and it is difficult to identify what are the most important directions needed to be taken: Is innovation in the region a jobs strategy for directions needed to be taken: Is innovation in the region a jobs strategy for low-income workers? Is it a knowledge-based business strategy, where a low-income workers? Is it a knowledge-based business strategy, where a few leading firms create massive amounts of value added? Or is it mostly few leading firms create massive amounts of value added? Or is it mostly

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concerned with technology upgrading in the small and medium sized concerned with technology upgrading in the small and medium sized enterprises? Is it essentially an export-oriented strategy? Or is its essence to enterprises? Is it essentially an export-oriented strategy? Or is its essence to build up knowledge and research through educational institutions. For more build up knowledge and research through educational institutions. For more effective outcome, a more focused policy is needed. effective outcome, a more focused policy is needed. More effort should also be put into identifying the most important facets More effort should also be put into identifying the most important facets of innovation in the region. This could have three potentially beneficial of innovation in the region. This could have three potentially beneficial effects: i) it can avoid the potential to disperse effort over too many goals effects: i) it can avoid the potential to disperse effort over too many goals and initiatives; ii) it can allow for more in-depth treatment of a smaller and initiatives; ii) it can allow for more in-depth treatment of a smaller number of sectors and subsectors, potentially increasing chances of success; number of sectors and subsectors, potentially increasing chances of success; iii) it helps solidify the Bío Bío Region’s external reputation as excellent in iii) it helps solidify the Bío Bío Region’s external reputation as excellent in a given area. The last criterion has been successful in creating regions which a given area. The last criterion has been successful in creating regions which are “known for” given areas of expertise and hence more easily attract are “known for” given areas of expertise and hence more easily attract investment and complementary industries in clusters. investment and complementary industries in clusters.

3.3.4 Aligning incentives in the higher education institutions 3.3.4 Aligning incentives in the higher education institutions A fourth issue for the Bío Bío Region in the revision of innovation A fourth issue for the Bío Bío Region in the revision of innovation policy is greater attention to the alignment of incentives in higher education policy is greater attention to the alignment of incentives in higher education institutions and the reduction of the perceived gap in quality between institutions and the reduction of the perceived gap in quality between employers and providers. employers and providers. The region’s leading research institution, the University of Concepción, The region’s leading research institution, the University of Concepción, competes on a national level for resources, faculty, recognition and prestige. competes on a national level for resources, faculty, recognition and prestige. It responds first to policies and priorities emanating from Santiago and from It responds first to policies and priorities emanating from Santiago and from national agencies like CONICYT or the MECESUP programme. The national agencies like CONICYT or the MECESUP programme. The Bío Bío Region has gone a long way in seeking greater local control over Bío Bío Region has gone a long way in seeking greater local control over resources, but even agencies like CORECYT recognise that they can play resources, but even agencies like CORECYT recognise that they can play only a complementary role for the foreseeable future. Therefore, regional only a complementary role for the foreseeable future. Therefore, regional authorities must make efforts to ensure that the regional priorities for authorities must make efforts to ensure that the regional priorities for research are aligned with national incentive policies. There is, however, also research are aligned with national incentive policies. There is, however, also a need to ensure that the highly successful knowledge production in the a need to ensure that the highly successful knowledge production in the leading university also links to the regional economy and that more focus is leading university also links to the regional economy and that more focus is placed on knowledge transfer. placed on knowledge transfer. The faculties of business administration demonstrate a consistent desire The faculties of business administration demonstrate a consistent desire to contribute to overall commercialisation activities, adding a needed to contribute to overall commercialisation activities, adding a needed dimension to the traditional knowledge creation function. Indeed, there is dimension to the traditional knowledge creation function. Indeed, there is evidence that co-operation between sectoral research and business faculties evidence that co-operation between sectoral research and business faculties is increasing. This trend should be strongly encouraged. is increasing. This trend should be strongly encouraged. Finally, higher education institutions, employers and innovation Finally, higher education institutions, employers and innovation agencies should co-operate to stem the divergence in perception on the value agencies should co-operate to stem the divergence in perception on the value of the skills imparted to graduates. This may involve greater differentiation of the skills imparted to graduates. This may involve greater differentiation between the efficiency and connectedness of technical training centres between the efficiency and connectedness of technical training centres

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(CFT) and professional institutes (IP) with employers and that of (CFT) and professional institutes (IP) with employers and that of universities, which have traditionally been more distant. The universities universities, which have traditionally been more distant. The universities should learn from the good practices provided by the CFT and IP sector in should learn from the good practices provided by the CFT and IP sector in order to increase relevance. order to increase relevance.

Conclusions and recommendations Conclusions and recommendations

The Bío Bío Region is a clear leader in making innovation a pillar of its The Bío Bío Region is a clear leader in making innovation a pillar of its economic development and future prosperity. It has excelled in numerous economic development and future prosperity. It has excelled in numerous areas of planning, co-ordination, analysis, goals setting, prioritisation, and areas of planning, co-ordination, analysis, goals setting, prioritisation, and consensus building. It has a coherent plan with well articulated long term consensus building. It has a coherent plan with well articulated long term goals. It has used systematic analysis to convert long-term strategy into goals. It has used systematic analysis to convert long-term strategy into short- and medium-term targets in specific sectors. It has pioneered new short- and medium-term targets in specific sectors. It has pioneered new agencies and organisational arrangements, some of which have become agencies and organisational arrangements, some of which have become national models. It has had particularly notable success in uniting national models. It has had particularly notable success in uniting stakeholder and leveraging significant amounts of co-operation across stakeholder and leveraging significant amounts of co-operation across agencies and institutions. agencies and institutions. The Bío Bío Region has significant activities underway for the The Bío Bío Region has significant activities underway for the promotion of innovation with high hopes for success. The OECD/World promotion of innovation with high hopes for success. The OECD/World Bank Review Team recommends that the chances for success can be Bank Review Team recommends that the chances for success can be increased if the following measures are taken: increased if the following measures are taken: • The strong public presence in the innovation model should be • The strong public presence in the innovation model should be recognised and its potential deficiencies should be reviewed. recognised and its potential deficiencies should be reviewed. Innovation authorities should take explicit actions to diminish Innovation authorities should take explicit actions to diminish potential negative consequences of the large role of public agencies potential negative consequences of the large role of public agencies as direct service providers, i.e. funders of innovation, and ensure as direct service providers, i.e. funders of innovation, and ensure that this presence does not discourage the emergence of private that this presence does not discourage the emergence of private sector actors. sector actors. • Concern to monitor the rate of return on public investments should • Concern to monitor the rate of return on public investments should be increased, for its own sake and as a means of encouraging high be increased, for its own sake and as a means of encouraging high calibre entrepreneurship and competitiveness. calibre entrepreneurship and competitiveness. • The balance between key informant data and more neutral statistical • The balance between key informant data and more neutral statistical measures of innovation performance should be revisited as it affects measures of innovation performance should be revisited as it affects policymaking. Key informant information should in all cases be policymaking. Key informant information should in all cases be complemented with views from outside the region, and selection complemented with views from outside the region, and selection and other tendencies toward biases should be mitigated. and other tendencies toward biases should be mitigated. • A wider portfolio of data related to firm characteristics and • A wider portfolio of data related to firm characteristics and performance should be developed in conjunction with the promotion performance should be developed in conjunction with the promotion of cluster-building strategies and evidence based decision making in of cluster-building strategies and evidence based decision making in general. general.

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• Efforts to unify the main goals for innovation in the region in the • Efforts to unify the main goals for innovation in the region in the short-to-medium-term should seek to identify a central focus. short-to-medium-term should seek to identify a central focus. Innovation authorities should guard against pursuing too many goals Innovation authorities should guard against pursuing too many goals simultaneously and/or dispersing energy and efforts. simultaneously and/or dispersing energy and efforts. • The incentives for higher education institutions should be • The incentives for higher education institutions should be continuously reviewed to find ways of influencing these toward continuously reviewed to find ways of influencing these toward more concrete participation in innovation activities and move from more concrete participation in innovation activities and move from knowledge production to knowledge transfer and to perceive job knowledge production to knowledge transfer and to perceive job creation as one of their tasks. creation as one of their tasks. • Higher education institutions should be encouraged to step up their • Higher education institutions should be encouraged to step up their innovation and knowledge transfer activities and share good innovation and knowledge transfer activities and share good practices among themselves in a systematic manner. Furthermore practices among themselves in a systematic manner. Furthermore universities should learn from good examples provided by the universities should learn from good examples provided by the leading technical training centres and professional institutes to leading technical training centres and professional institutes to improve labour market relevance of their learning programmes. improve labour market relevance of their learning programmes.

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References References

ARIDP (Agencia Regional de Innovación y Desarrollo Productivo) (2008), ARIDP (Agencia Regional de Innovación y Desarrollo Productivo) (2008), Agenda Regional de Innovación y Desarrollo Productivo 2008-2012, Agenda Regional de Innovación y Desarrollo Productivo 2008-2012, ARIDP, Concepción, pp. 13-15. ARIDP, Concepción, pp. 13-15. Benavente, J.M., et al. (2008), La Dinámica Empresarial en Chile 1999- Benavente, J.M., et al. (2008), La Dinámica Empresarial en Chile 1999- 2006 (Business Dynamics in Chile 1999-2006), Foro Pro Innovación, 2006 (Business Dynamics in Chile 1999-2006), Foro Pro Innovación, May. May. David, P.A., B.H. Halle and A.A. Toole (2000), “Is Public R&D a David, P.A., B.H. Halle and A.A. Toole (2000), “Is Public R&D a Complement or a Substitute for Private R&D?: A Review of the Complement or a Substitute for Private R&D?: A Review of the Econometric Evidence”, Research Policy, Vol. 29, No. 4-5, Elsevier, Econometric Evidence”, Research Policy, Vol. 29, No. 4-5, Elsevier, Oxford, pp. 497-529. Oxford, pp. 497-529. Pontin, J. (2008), “The Geography of Innovation”, Technology Review, Pontin, J. (2008), “The Geography of Innovation”, Technology Review, Massachusetts Institute of Technology, Massachusetts Institute of Technology, www.technologyreview.com/video/?vid=12 www.technologyreview.com/video/?vid=12 The North Coast Prosperity Network (2003), “Fisheries, Fish Processing & The North Coast Prosperity Network (2003), “Fisheries, Fish Processing & Aquaculture Industry Cluster Work-Plan 2002-2007”, Draft Document, Aquaculture Industry Cluster Work-Plan 2002-2007”, Draft Document, http://northcoastprosperity.com/files/webfm/contents/fishworkplan.pdf http://northcoastprosperity.com/files/webfm/contents/fishworkplan.pdf UCSC (Universidad Católica de la Santísima Concepción) (2008), UCSC (Universidad Católica de la Santísima Concepción) (2008), “Identification of Competitive Sectors in the Bío Bío Region” “Identification of Competitive Sectors in the Bío Bío Region” Consultancy Report presented to the Regional Agency of Innovation and Consultancy Report presented to the Regional Agency of Innovation and Productive Development, Concepción, 2 July. Productive Development, Concepción, 2 July.

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Chapter 4: Social, cultural and environmental development Chapter 4: Social, cultural and environmental development

Social, cultural and environmental development underpins and stabilises Social, cultural and environmental development underpins and stabilises economic growth and improve community health and welfare, social economic growth and improve community health and welfare, social cohesion as well as clean, healthy and sustainable environment. This cohesion as well as clean, healthy and sustainable environment. This chapter will review the contribution of the higher education institutions of chapter will review the contribution of the higher education institutions of the Bío Bío Region to its social, cultural, and environmental development. the Bío Bío Region to its social, cultural, and environmental development. Due to the fact that the region has the highest percentage of a rural Due to the fact that the region has the highest percentage of a rural population in Chile, the chapter will have a special focus on rural population in Chile, the chapter will have a special focus on rural development, where social innovation aiming to foster local initiative is one development, where social innovation aiming to foster local initiative is one of the features of sustainable rural economies. The chapter concludes with of the features of sustainable rural economies. The chapter concludes with recommendations. recommendations.

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The social conditions in the Bío Bío Region have improved considerably The social conditions in the Bío Bío Region have improved considerably in the last two decades. Still, in a national comparison, Bío Bío is one of the in the last two decades. Still, in a national comparison, Bío Bío is one of the regions with the highest proportion of poor and indigent families. Rural regions with the highest proportion of poor and indigent families. Rural poverty is more prominent than in cities: several municipalities in the region poverty is more prominent than in cities: several municipalities in the region count among the poorest in the country, although their situation has count among the poorest in the country, although their situation has improved over recent years. improved over recent years. Despite the improvement over time, in terms of the UNDP HDI (Human Despite the improvement over time, in terms of the UNDP HDI (Human Development Index)1 that combines life expectancy, education attainment Development Index)1 that combines life expectancy, education attainment and per capita income, the Bío Bío Region continues to under-perform. In and per capita income, the Bío Bío Region continues to under-perform. In 2003, the Bío Bío Region ranked number 10 in Chile with the value of 0.686 2003, the Bío Bío Region ranked number 10 in Chile with the value of 0.686 which is lower than the national average of 0.725 (UNDP, 2004). which is lower than the national average of 0.725 (UNDP, 2004). Nine out of the 54 municipalities have HDI scores above the regional Nine out of the 54 municipalities have HDI scores above the regional value (0.686) and only five municipalities (Talcahuano, Chillán Viejo, value (0.686) and only five municipalities (Talcahuano, Chillán Viejo, Concepción, Chiguayante and San Pedro de la Paz) are above the national Concepción, Chiguayante and San Pedro de la Paz) are above the national value (0.725) (see Figure 4.1). value (0.725) (see Figure 4.1). The Bío Bío Region is the third densely populated region in Chile with The Bío Bío Region is the third densely populated region in Chile with Greater Concepción representing 36% of the regional population. At the Greater Concepción representing 36% of the regional population. At the same time, it has the highest percentage of rural population (18%) in the same time, it has the highest percentage of rural population (18%) in the country. This share has diminished over years with increased urbanisation country. This share has diminished over years with increased urbanisation and its corollary, rural out-migration. Out-migration, usually resulting from and its corollary, rural out-migration. Out-migration, usually resulting from reduced job opportunities in agriculture because of increased mechanisation reduced job opportunities in agriculture because of increased mechanisation and productivity, entails ageing of the population and a general loss of and productivity, entails ageing of the population and a general loss of vitality of rural economies, a trend that has affected or is still affecting many vitality of rural economies, a trend that has affected or is still affecting many rural areas worldwide. rural areas worldwide. Another characteristic of lagging economies relates to higher Another characteristic of lagging economies relates to higher unemployment: in the Bío Bío Region average regional unemployment was unemployment: in the Bío Bío Region average regional unemployment was at 11% at the beginning of 2009 but it reached 18% in some rural areas. at 11% at the beginning of 2009 but it reached 18% in some rural areas. Unemployment is structural in nature and linked to shifts in the regional Unemployment is structural in nature and linked to shifts in the regional economy. As a consequence, the region is a net exporter of population with economy. As a consequence, the region is a net exporter of population with half of the migrants moving to the Metropolitan Region. half of the migrants moving to the Metropolitan Region. The Bío Bío Region is culturally diverse. Of the total regional The Bío Bío Region is culturally diverse. Of the total regional population 7.8% declare to belong to one of the eight officially recognised population 7.8% declare to belong to one of the eight officially recognised ethnic groups, although the great majority of these are Mapuche. Most have ethnic groups, although the great majority of these are Mapuche. Most have moved to urban centres, living in conditions of poverty and indigence. moved to urban centres, living in conditions of poverty and indigence. Alongside ethnic identity there remains the heritage of certain activities that Alongside ethnic identity there remains the heritage of certain activities that have evolved like coal mining, forestry, fishing and agriculture, textiles and have evolved like coal mining, forestry, fishing and agriculture, textiles and steel. Only 3.8% of the regional population participates in community steel. Only 3.8% of the regional population participates in community organisations and in art and cultural events. In the case of indigenous organisations and in art and cultural events. In the case of indigenous populations, only 0.6% participates in ethic and community organisations. populations, only 0.6% participates in ethic and community organisations.

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Figure 4.1. HDI in the municipalities of the Bío Bío Region Figure 4.1. HDI in the municipalities of the Bío Bío Region

Lower than .600 Lower than .600

Between .600 and .645 Between .600 and .645

Between .645 and .686 Between .645 and .686

Above regional value (.686) Above regional value (.686)

Above national value (.725) Above national value (.725)

Note: No data are available for the municipalities of Hualpén and Alto Bío Bío (both Note: No data are available for the municipalities of Hualpén and Alto Bío Bío (both created in 2004). created in 2004).

Source: Data from UNDP (United Nations Development Programme) (2004), Las Source: Data from UNDP (United Nations Development Programme) (2004), Las Trayectorias del Desarrollo Humano en las Comunas de Chile 1994-2003 (Human Trayectorias del Desarrollo Humano en las Comunas de Chile 1994-2003 (Human Development Pathways in Chile’s Municipalities 1994-2003), UNDP/MIDEPLAN, Development Pathways in Chile’s Municipalities 1994-2003), UNDP/MIDEPLAN, Santiago de Chile. Santiago de Chile.

Despite the improvements in recent years, there are various Despite the improvements in recent years, there are various environmental risks, often due to economic activity in the region. These environmental risks, often due to economic activity in the region. These include soil degradation due to monocultures, reduced marine biomass due include soil degradation due to monocultures, reduced marine biomass due to polluted bays, air pollution from industrial activity, damage to ecosystems to polluted bays, air pollution from industrial activity, damage to ecosystems through the construction of hydroelectric power plants, risk associated with through the construction of hydroelectric power plants, risk associated with fuel distribution, garbage dump and stocking areas. fuel distribution, garbage dump and stocking areas.

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In the context of diverse population, growing rural-urban divide and In the context of diverse population, growing rural-urban divide and environmental degradation, this chapter examines: environmental degradation, this chapter examines: • What is the contribution of higher education institutions to the • What is the contribution of higher education institutions to the Bío Bío Region’s cultural, social and environmental development, Bío Bío Region’s cultural, social and environmental development, particularly in rural areas? particularly in rural areas? • Are the activities of the higher education institutions appropriately • Are the activities of the higher education institutions appropriately targeted to address the key challenges in the region? Are there gaps targeted to address the key challenges in the region? Are there gaps in delivery and or emerging areas and topics that would benefit from in delivery and or emerging areas and topics that would benefit from closer attention from the higher education institutions? closer attention from the higher education institutions? • What lessons can be learnt from international experience? • What lessons can be learnt from international experience?

4.1 Rural development policies and higher education programmes 4.1 Rural development policies and higher education programmes

Chile has become a major agricultural export country and the Bío Bío Chile has become a major agricultural export country and the Bío Bío Region is one of the main contributors to this segment of the economy. Region is one of the main contributors to this segment of the economy. National policies seek to further develop the country’s comparative National policies seek to further develop the country’s comparative advantages in this area. Of the eight clusters identified by the National advantages in this area. Of the eight clusters identified by the National Innovation Council in 2007, four concern agriculture and fishing (fish Innovation Council in 2007, four concern agriculture and fishing (fish farming, pork and chicken farming, processed food and fruit industry) and farming, pork and chicken farming, processed food and fruit industry) and one – tourism — has impact in rural areas. one – tourism — has impact in rural areas. The profile of the rural economy of the Bío Bío Region is contrasted. The profile of the rural economy of the Bío Bío Region is contrasted. The region is leading in forestry with 37.3% of Chilean forest plantations The region is leading in forestry with 37.3% of Chilean forest plantations and close to 60% of sawn wood production in 2007. The sector is dominated and close to 60% of sawn wood production in 2007. The sector is dominated by a few highly productive export oriented firms but the share of higher by a few highly productive export oriented firms but the share of higher added value transformed products remains modest compared to basic wood added value transformed products remains modest compared to basic wood products (pulp and cellulose, sawn wood) accounting for two thirds of products (pulp and cellulose, sawn wood) accounting for two thirds of regional exports. The extensive development of planted forest land has regional exports. The extensive development of planted forest land has entailed a decrease in agricultural land of around 3% per year, compensated entailed a decrease in agricultural land of around 3% per year, compensated by improved productivity, so overall production levels have increased while by improved productivity, so overall production levels have increased while promising new developments (berries, asparagus) have appeared. Land promising new developments (berries, asparagus) have appeared. Land tenure is mostly characterised by small size: close to 50% of farms in 2007 tenure is mostly characterised by small size: close to 50% of farms in 2007 had less than 5 km2 but more than 50% of cultivated land was within farms had less than 5 km2 but more than 50% of cultivated land was within farms of more than 50 km2. Lastly, fishing is an important component of the of more than 50 km2. Lastly, fishing is an important component of the economy in the Bío Bío Region, the second region for this activity (20.6% economy in the Bío Bío Region, the second region for this activity (20.6% in 2005). Depletion of resources and quota policies, have however led to in 2005). Depletion of resources and quota policies, have however led to reduced catches and increased unemployment in coastal areas, with new reduced catches and increased unemployment in coastal areas, with new venues in aquaculture being sought. The Bío Bío Region has an important venues in aquaculture being sought. The Bío Bío Region has an important potential for aquaculture that is not exploited to this day, contrary to other potential for aquaculture that is not exploited to this day, contrary to other Chilean regions. Chilean regions.

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The Regional Development Strategy of the Bío Bío Region for 2008- The Regional Development Strategy of the Bío Bío Region for 2008- 2015 aims to increased competitiveness in a certain number of sectors 2015 aims to increased competitiveness in a certain number of sectors including agriculture while also emphasising education, science, technology including agriculture while also emphasising education, science, technology and innovation. These policy priorities are well reflected in the “Agenda for and innovation. These policy priorities are well reflected in the “Agenda for Innovation and Productive Development of the Bío Bío Region for 2008- Innovation and Productive Development of the Bío Bío Region for 2008- 2012” with the first “Programmes for Improvement of Competitiveness” 2012” with the first “Programmes for Improvement of Competitiveness” (PMCs) relating to education and innovation on one hand and to agriculture (PMCs) relating to education and innovation on one hand and to agriculture (first component: cattle breeding) on the other. Although most programmes (first component: cattle breeding) on the other. Although most programmes relating to education and innovation do not directly concern the rural relating to education and innovation do not directly concern the rural economy, these can be developed by capitalising on the presence of higher economy, these can be developed by capitalising on the presence of higher education institutions in rural areas, while the PMC targeting agriculture education institutions in rural areas, while the PMC targeting agriculture involves their R&D and training capacities. Higher education institutions are involves their R&D and training capacities. Higher education institutions are well placed to impact the PMCs: The management committees of the two well placed to impact the PMCs: The management committees of the two PMCs include representatives from higher education institutions and the PMCs include representatives from higher education institutions and the Education and Innovation PMC is presided by the Rector of the Universidad Education and Innovation PMC is presided by the Rector of the Universidad Católica de la Santísima Concepción. Católica de la Santísima Concepción. The major higher education institutions, universities, professional The major higher education institutions, universities, professional institutes (IPs) and technical training centres (CFTs) maintain presence in institutes (IPs) and technical training centres (CFTs) maintain presence in the different provinces of the Bío Bío Region, including the most rural ones. the different provinces of the Bío Bío Region, including the most rural ones. In Chillán, the capital of the Province of Ñuble, a major higher education In Chillán, the capital of the Province of Ñuble, a major higher education presence directly relevant for rural areas is maintained by the University of presence directly relevant for rural areas is maintained by the University of Concepción, the University of Bío Bío, the Universidad Católica de la Concepción, the University of Bío Bío, the Universidad Católica de la Santísima Concepción and INACAP. The University of Concepción opened Santísima Concepción and INACAP. The University of Concepción opened its Chillán campus in 1954 and has trained up to this day 1 500 agronomists, its Chillán campus in 1954 and has trained up to this day 1 500 agronomists, 1 000 veterinarians and 300 agricultural engineers, the only curricula of its 1 000 veterinarians and 300 agricultural engineers, the only curricula of its kind in the country; it cooperates in different research projects with agri- kind in the country; it cooperates in different research projects with agri- food firms and has contributed to major productivity gains in the agricultural food firms and has contributed to major productivity gains in the agricultural sector while helping in the launch of successful niche products such as sector while helping in the launch of successful niche products such as berries, asparagus and medicinal plants (within Technology Transfers berries, asparagus and medicinal plants (within Technology Transfers Groups relying on laboratory resources) in which the Bío Bío Region now Groups relying on laboratory resources) in which the Bío Bío Region now enjoys the top position in terms of production in Chile. Quality wine enjoys the top position in terms of production in Chile. Quality wine production now developing in the Itata Valley is supported by means of a production now developing in the Itata Valley is supported by means of a wine analysis laboratory. The University of Concepción in Chillán wine analysis laboratory. The University of Concepción in Chillán successfully cloned the first calf in Chile in 2008. successfully cloned the first calf in Chile in 2008. The Universidad de Bío Bío opened a food analysis (health and quality The Universidad de Bío Bío opened a food analysis (health and quality control, certification) laboratory in Chillán in 2000 (LECYCA) that control, certification) laboratory in Chillán in 2000 (LECYCA) that cooperates with small and medium sized firms. Financing of the centre was cooperates with small and medium sized firms. Financing of the centre was ensured by the regional government with support from the FNDR (National ensured by the regional government with support from the FNDR (National Fund for Regional Development). The other major university institutions Fund for Regional Development). The other major university institutions with impact in rural areas are located in Concepción. The University of with impact in rural areas are located in Concepción. The University of Bío Bío has a Forestry faculty with different undergraduate (architecture, Bío Bío has a Forestry faculty with different undergraduate (architecture, forestry, industrial design, civil engineering, etc.) and graduate programmes forestry, industrial design, civil engineering, etc.) and graduate programmes

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(energy efficiency and sustainable habitat, wood construction, architecture (energy efficiency and sustainable habitat, wood construction, architecture and city planning, etc.). Laboratory facilities conduct research in wood and city planning, etc.). Laboratory facilities conduct research in wood genomics, composite materials and bio-deterioration in particular. genomics, composite materials and bio-deterioration in particular. Teaching, training and research in the fields of fishing resources is Teaching, training and research in the fields of fishing resources is carried out by the Universidad Católica de la Santísima Concepción with carried out by the Universidad Católica de la Santísima Concepción with major strategic research and projects developed in the context of the major strategic research and projects developed in the context of the important difficulties now facing the fishing industry (12 000 jobs in the important difficulties now facing the fishing industry (12 000 jobs in the region). Several higher education institutions, including the Universidad region). Several higher education institutions, including the Universidad Católica de la Santísima Concepción, University of Concepción and IP Católica de la Santísima Concepción, University of Concepción and IP Arturo Prat, also participate in a “Public-Private Roundtable” discussion on Arturo Prat, also participate in a “Public-Private Roundtable” discussion on investigating future development strategies for the fishing industry in the investigating future development strategies for the fishing industry in the Bío Bío Region. Bío Bío Region.

4.2 HEIs widening access and providing services to rural communities 4.2 HEIs widening access and providing services to rural communities

The higher education institutions in the Bío Bío Region see widening The higher education institutions in the Bío Bío Region see widening access and increasing participation of students from lower socio-economic access and increasing participation of students from lower socio-economic backgrounds as their key social contribution to regional development. They backgrounds as their key social contribution to regional development. They have been instrumental in the increased access of the lower income quintiles have been instrumental in the increased access of the lower income quintiles to higher education. As seen in Chapter 2 on human capital development, to higher education. As seen in Chapter 2 on human capital development, with the help of funding from the Ministry of Education, they have each with the help of funding from the Ministry of Education, they have each developed their own projects and approaches to collaborate with the schools developed their own projects and approaches to collaborate with the schools by improving the management of the schools themselves and raising the by improving the management of the schools themselves and raising the aspirations and learning outcomes of students. aspirations and learning outcomes of students. The University of Concepción has developed “Talent Programmes” in The University of Concepción has developed “Talent Programmes” in cooperation with the municipal councils of Hualpén and Talcahuano. The cooperation with the municipal councils of Hualpén and Talcahuano. The programmes aim to motivate secondary school pupils towards higher programmes aim to motivate secondary school pupils towards higher education and help them to determine their future study areas by bringing in education and help them to determine their future study areas by bringing in top level professionals and scientists to speak about different careers during top level professionals and scientists to speak about different careers during meetings organised in the schools. The University of Bío Bío has devised a meetings organised in the schools. The University of Bío Bío has devised a programme in the Province of Arauco in favour of young people who have programme in the Province of Arauco in favour of young people who have failed university entrance exams but accept to sign up for basic professional failed university entrance exams but accept to sign up for basic professional training in different fields. As seen before, the Universidad Católica de la training in different fields. As seen before, the Universidad Católica de la Santísima Concepción is the only university to maintain a campus in the Santísima Concepción is the only university to maintain a campus in the same province (the one with the highest percentage of indigenous same province (the one with the highest percentage of indigenous population, mostly Mapuche), with 1 500 students attending its Cañete population, mostly Mapuche), with 1 500 students attending its Cañete Agricultural Technology Transfer Centre. The San Sebastián University has Agricultural Technology Transfer Centre. The San Sebastián University has identified five secondary schools in different parts of the Bío Bío Region identified five secondary schools in different parts of the Bío Bío Region presenting specific characteristics of social vulnerability, where targeted presenting specific characteristics of social vulnerability, where targeted support programmes to ensure that students are better prepared for entry into support programmes to ensure that students are better prepared for entry into the higher education system. the higher education system.

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Most higher education institutions also provide a wide variety of Most higher education institutions also provide a wide variety of services to different communities, usually in the health and social sector. services to different communities, usually in the health and social sector. Valuable work is carried out, not the least in rural areas where many higher Valuable work is carried out, not the least in rural areas where many higher education institutions reach out to the low income population segments in education institutions reach out to the low income population segments in particular. In many cases students are involved in non-credit bearing particular. In many cases students are involved in non-credit bearing outreach activities. While lack of doctors and particularly certain specialists outreach activities. While lack of doctors and particularly certain specialists in rural areas is a recurring problem, the region’s low income population in rural areas is a recurring problem, the region’s low income population would also benefit from stepping up preventive health care. Both approaches would also benefit from stepping up preventive health care. Both approaches are present among the higher education institutions in the region, as is are present among the higher education institutions in the region, as is evident in the examples below. Again, each institution has developed its evident in the examples below. Again, each institution has developed its own projects and approaches to collaborate with municipal government own projects and approaches to collaborate with municipal government and/or other stakeholders and funding agencies to improve the social and/or other stakeholders and funding agencies to improve the social conditions in the region. conditions in the region. The University of Concepción has established a programme in The University of Concepción has established a programme in ophthalmology whereby students receive financial support on the basis of an ophthalmology whereby students receive financial support on the basis of an agreement to serve a minimum of three to five years in rural areas. This agreement to serve a minimum of three to five years in rural areas. This programme is now being opened up to other fields of medical practice. In programme is now being opened up to other fields of medical practice. In addition, the university has started a programme in line with the national addition, the university has started a programme in line with the national initiatives, which encourages university graduates in medical fields to stay initiatives, which encourages university graduates in medical fields to stay and work in remote areas after graduation. The San Sebastián University has and work in remote areas after graduation. The San Sebastián University has a special commitment to social responsibility and delivers this commitment a special commitment to social responsibility and delivers this commitment through all study programmes. It has, for example five dental clinics in through all study programmes. It has, for example five dental clinics in different parts of the region and has signed a series of agreements with different parts of the region and has signed a series of agreements with municipalities to facilitate access of the poorest people to these facilities. municipalities to facilitate access of the poorest people to these facilities. The University of Bío Bío has implemented information campaigns to The University of Bío Bío has implemented information campaigns to counter infant malnutrition in the countryside, contributing to a dramatic counter infant malnutrition in the countryside, contributing to a dramatic decrease in mortality rates (the infant mortality rate was reduced from decrease in mortality rates (the infant mortality rate was reduced from 75 per 1 000 in the 1970s to 6 per 1 000 today). 75 per 1 000 in the 1970s to 6 per 1 000 today). Most of the higher education institutions’ initiatives are based on social Most of the higher education institutions’ initiatives are based on social innovation and address sector-specific issues, lacking a more integrated innovation and address sector-specific issues, lacking a more integrated approach to local economic and social development in the region. There are, approach to local economic and social development in the region. There are, however, some innovative approaches under way that will be both impactful however, some innovative approaches under way that will be both impactful and could be extended and scaled up. For example, the University of and could be extended and scaled up. For example, the University of Bío Bío opened the Agri-business programme in Chillán at the beginning of Bío Bío opened the Agri-business programme in Chillán at the beginning of 2009 that is creating a public-private regional network to train entrepreneurs 2009 that is creating a public-private regional network to train entrepreneurs in new marketing techniques and pricing strategies. in new marketing techniques and pricing strategies. Another innovative approach to local economic social development is Another innovative approach to local economic social development is taking place in El Carmen with the help of the University of Concepción. taking place in El Carmen with the help of the University of Concepción. El Carmen, situated 45 km from Chillán is home to 14 000 inhabitants and is El Carmen, situated 45 km from Chillán is home to 14 000 inhabitants and is the poorest municipality in the Bío Bío Region and one of the poorest in the poorest municipality in the Bío Bío Region and one of the poorest in Chile. Since 1993, an integrated approach to local economic and social Chile. Since 1993, an integrated approach to local economic and social development in El Carmen has been implemented through education and development in El Carmen has been implemented through education and

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training with the support of the Faculty of Agronomy of the University of training with the support of the Faculty of Agronomy of the University of Concepción and INDAP (National Institute for Agricultural Development). Concepción and INDAP (National Institute for Agricultural Development). Citizen participation in the different actions undertaken is ensured through Citizen participation in the different actions undertaken is ensured through the seventy “Juntas de Vecinos”2 (neighbourhood associations) that exist in the seventy “Juntas de Vecinos”2 (neighbourhood associations) that exist in El Carmen. The university is helping to prevent further out-migration by El Carmen. The university is helping to prevent further out-migration by supporting small farmers who receive training in specific areas (irrigation, supporting small farmers who receive training in specific areas (irrigation, new cultivation techniques which respect the environment as well as product new cultivation techniques which respect the environment as well as product diversification) with active participation of teachers and students from the diversification) with active participation of teachers and students from the faculty within two experimental centres. In addition, to facilitate increased faculty within two experimental centres. In addition, to facilitate increased access of young people to higher education certain basic health requirements access of young people to higher education certain basic health requirements during the period of primary and secondary schooling have been ensured during the period of primary and secondary schooling have been ensured with the help of the university. For example, the University’s dental clinic with the help of the university. For example, the University’s dental clinic provides dental care free of charge to all pupils during the 12-year provides dental care free of charge to all pupils during the 12-year mandatory schooling period. mandatory schooling period.

4.3 Community development in rural areas 4.3 Community development in rural areas

While widening access will contribute to outmigration if the best and While widening access will contribute to outmigration if the best and brightest leave the region to find work opportunities elsewhere, and service brightest leave the region to find work opportunities elsewhere, and service delivery will address the symptoms of poverty and indigence, but not their delivery will address the symptoms of poverty and indigence, but not their causes, there is a need to reach out and empower communities to address causes, there is a need to reach out and empower communities to address their own problems by strengthening the social economy and cultural their own problems by strengthening the social economy and cultural identity. Community development programmes aim to build capacity by identity. Community development programmes aim to build capacity by enabling communities to respond to change and emerging social, economic enabling communities to respond to change and emerging social, economic and environmental challenges. Higher education institutions, in and environmental challenges. Higher education institutions, in collaboration with local and regional authorities, can play an important role collaboration with local and regional authorities, can play an important role in training community development practitioners, providing lifelong in training community development practitioners, providing lifelong learning and re-skilling and up-skilling opportunities, conducting research learning and re-skilling and up-skilling opportunities, conducting research into specific issues and best practices and developing co-operation and into specific issues and best practices and developing co-operation and research opportunities. One of the most innovative examples to approach research opportunities. One of the most innovative examples to approach local development is the European Union LEADER programme which local development is the European Union LEADER programme which provides tools for bottom-up capacity building and assessment. provides tools for bottom-up capacity building and assessment. The Universidad Católica de la Santísima Concepción has taken an The Universidad Católica de la Santísima Concepción has taken an important role in supporting sustainable community development in two important role in supporting sustainable community development in two rural areas of Coronel and Arauco. In Coronel, the university supports a rural areas of Coronel and Arauco. In Coronel, the university supports a project of mussel aquaculture developed by a private sector company project of mussel aquaculture developed by a private sector company (Foodcorp) and is carrying out research in soft water fish farming. (Foodcorp) and is carrying out research in soft water fish farming. Collaboration encourages the local fishermen communities to move away Collaboration encourages the local fishermen communities to move away from capture fisheries to aquaculture and builds value added segments. In from capture fisheries to aquaculture and builds value added segments. In Arauco, the Universidad Católica de la Santísima Concepción has launched Arauco, the Universidad Católica de la Santísima Concepción has launched the Agricultural Technology Transfer Centre to address the situation of the the Agricultural Technology Transfer Centre to address the situation of the Mapuche population and their economic development. Mapuche have Mapuche population and their economic development. Mapuche have

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recently enforced their campaign to regain land and are in continuous recently enforced their campaign to regain land and are in continuous conflict with the leading energy and forestry companies. The two projects conflict with the leading energy and forestry companies. The two projects not only address the needs of local low income populations, but aim to not only address the needs of local low income populations, but aim to collaborate with the communities to build their capacity to face the collaborate with the communities to build their capacity to face the challenges of the changing world. Catholic university’s social commitment challenges of the changing world. Catholic university’s social commitment and access to more flexible funding arrangements have been helpful in this and access to more flexible funding arrangements have been helpful in this work. work.

Box 4.1. LEADER: bottom-up local development in the EU Box 4.1. LEADER: bottom-up local development in the EU

LEADER (Liaisons entre Acteurs du Développement Economique Rural) is a LEADER (Liaisons entre Acteurs du Développement Economique Rural) is a European programme based on an integrated and endogenous approach to local European programme based on an integrated and endogenous approach to local development. Since 1991, the LEADER initiative has had three different editions. development. Since 1991, the LEADER initiative has had three different editions. The programme was first launched for a five year period in 1991 and applied in The programme was first launched for a five year period in 1991 and applied in 220 rural areas of the former EU 15 countries. LEADER II (1994-99) spread to 220 rural areas of the former EU 15 countries. LEADER II (1994-99) spread to 1 000 rural areas and to more than 1 500 in the enlarged EU 27 countries. The 1 000 rural areas and to more than 1 500 in the enlarged EU 27 countries. The LEADER+ (2000-06) was the last edition of the LEADER as an EU rural LEADER+ (2000-06) was the last edition of the LEADER as an EU rural development initiative. It placed special emphasis on integrative strategies that development initiative. It placed special emphasis on integrative strategies that connect together all aspects of rural life. The last phase of the LEADER focused connect together all aspects of rural life. The last phase of the LEADER focused on the use of knowledge and technologies, improvement of quality of life, added on the use of knowledge and technologies, improvement of quality of life, added value to local products and the increase of value of natural and cultural resources. value to local products and the increase of value of natural and cultural resources. This bottom-up programme based on a method for the definition, selection and This bottom-up programme based on a method for the definition, selection and implementation of small projects (many do not exceed EUR 2 000) in rural areas implementation of small projects (many do not exceed EUR 2 000) in rural areas has met success and is now mainstreamed for the present EU programming period has met success and is now mainstreamed for the present EU programming period (up to 2013), many member countries having integrated LEADER principles and (up to 2013), many member countries having integrated LEADER principles and guidelines into their national rural development policies that are increasingly guidelines into their national rural development policies that are increasingly “place-based”. “place-based”. LEADER is based on eight principles: an area-based approach, a bottom-up LEADER is based on eight principles: an area-based approach, a bottom-up approach, local partnerships, innovation, multi-sector integration, inter-territorial approach, local partnerships, innovation, multi-sector integration, inter-territorial cooperation, networking, and decentralised management and financing, Most of cooperation, networking, and decentralised management and financing, Most of these principles can be found today in rural development programmes in different these principles can be found today in rural development programmes in different countries. LEADER not only pioneered these in local development strategies but countries. LEADER not only pioneered these in local development strategies but devised a methodology combining these different features of processes at grass- devised a methodology combining these different features of processes at grass- roots levels. Implementation of LEADER is voluntary: the public and private roots levels. Implementation of LEADER is voluntary: the public and private actors within a self-defined area based on historical, geographical considerations actors within a self-defined area based on historical, geographical considerations and/or local assets and know-how get organised as a Local Action Group (LAG) and/or local assets and know-how get organised as a Local Action Group (LAG) that includes representatives of civil society such as NGOs. A local development that includes representatives of civil society such as NGOs. A local development strategy is than devised by the LAG on the basis of inputs from workshops and strategy is than devised by the LAG on the basis of inputs from workshops and citizen forums. Projects are submitted to board approval within the priorities citizen forums. Projects are submitted to board approval within the priorities defined by the strategy. Choice of projects is ensured on the basis of objective defined by the strategy. Choice of projects is ensured on the basis of objective criteria and funding is also decided by the board that disposes of an annual budget criteria and funding is also decided by the board that disposes of an annual budget integrating EU, national and regional contributions. Beneficiaries deliver integrating EU, national and regional contributions. Beneficiaries deliver milestone reports; evaluation is conducted by independent experts and/or milestone reports; evaluation is conducted by independent experts and/or specialists and researchers from universities. specialists and researchers from universities.

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Box 4.1. LEADER: bottom-up local development in the EU Box 4.1. LEADER: bottom-up local development in the EU (continued) (continued)

This participatory democracy approach has given new momentum to rural This participatory democracy approach has given new momentum to rural development: empowering people to think about their own future and how to use development: empowering people to think about their own future and how to use local assets amounts to recognising them as the best experts with knowledge of local assets amounts to recognising them as the best experts with knowledge of the local context and area. Unleashing the human capital potential of course the local context and area. Unleashing the human capital potential of course requires capacitation and training, which is an integral part of the LEADER requires capacitation and training, which is an integral part of the LEADER programme. Amongst the principles mentioned above, innovation in processes or programme. Amongst the principles mentioned above, innovation in processes or content, including social innovation, is particularly important. Networking is content, including social innovation, is particularly important. Networking is embedded in LEADER that also seeks to promote mutual learning: LEADER embedded in LEADER that also seeks to promote mutual learning: LEADER projects are interconnected through regional, national and European networks to projects are interconnected through regional, national and European networks to exchange experiences and promote best practices by on-line access to shared exchange experiences and promote best practices by on-line access to shared resources and regular events. resources and regular events. Amongst LEADER projects, it is worthwhile mentioning several areas: village Amongst LEADER projects, it is worthwhile mentioning several areas: village renewal, youth clubs, promotion of female entrepreneurship, tourism as a second renewal, youth clubs, promotion of female entrepreneurship, tourism as a second source of revenue for farming families, environmental protection, support to source of revenue for farming families, environmental protection, support to handicraft production, commercialisation of local products, etc. Among the main handicraft production, commercialisation of local products, etc. Among the main outcomes of LEADER are new governance practices with increased cooperation outcomes of LEADER are new governance practices with increased cooperation between the national, regional and local levels requiring more efficient vertical between the national, regional and local levels requiring more efficient vertical co-ordination; development of coherent local territorial development strategies co-ordination; development of coherent local territorial development strategies promoting fruitful dialogue with regional authorities; a holistic vision of rural promoting fruitful dialogue with regional authorities; a holistic vision of rural spaces going beyond traditional agricultural models, promoting sustainable spaces going beyond traditional agricultural models, promoting sustainable economic diversification and social integration. economic diversification and social integration.

Source: OECD (2006), Rural Policy Reviews, The New Rural Paradigm: Policies and Source: OECD (2006), Rural Policy Reviews, The New Rural Paradigm: Policies and Governance, OECD, Paris. Governance, OECD, Paris.

Box 4.2. UCSC building sustainable communities Box 4.2. UCSC building sustainable communities

Coronel and move away from capture fisheries Coronel and move away from capture fisheries The community of Coronel is located in the province of Concepción. Coronel The community of Coronel is located in the province of Concepción. Coronel has the highest concentration of fishery production in the Bío Bío Region. has the highest concentration of fishery production in the Bío Bío Region. Unemployment and youth out-migration rates have been at high levels for several Unemployment and youth out-migration rates have been at high levels for several decades. In 2008, The Universidad Católica de la Santísima Concepción (UCSC) decades. In 2008, The Universidad Católica de la Santísima Concepción (UCSC) through its Regional Centre for Environmental, Maritime and Aquaculture through its Regional Centre for Environmental, Maritime and Aquaculture Research and Technology Transference (CREAMAR) embarked on a project of Research and Technology Transference (CREAMAR) embarked on a project of mussel aquaculture in collaboration with the biggest local employer in the fishery mussel aquaculture in collaboration with the biggest local employer in the fishery industry (Foodcorp). The aim of the mussel farming project was to develop an industry (Foodcorp). The aim of the mussel farming project was to develop an economically efficient aquaculture system for Mytilus Chilensis in the micro economically efficient aquaculture system for Mytilus Chilensis in the micro areas of Llico and Dichato. areas of Llico and Dichato.

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Box 4.2. UCSC building sustainable communities (continued) Box 4.2. UCSC building sustainable communities (continued)

In this collaboration, the university has conducted research in soft water fish In this collaboration, the university has conducted research in soft water fish farming and played an important brokerage role creating trust and confidence farming and played an important brokerage role creating trust and confidence between the fishermen and the company. The fishermen’s associations have between the fishermen and the company. The fishermen’s associations have provided farming spaces, raw materials, experience and work input. The company provided farming spaces, raw materials, experience and work input. The company has provided commercialisation channels, purchasing capabilities, technology, has provided commercialisation channels, purchasing capabilities, technology, and financing. and financing. The costs, of USD 570 000 have been evenly divided between Innova Bío Bío The costs, of USD 570 000 have been evenly divided between Innova Bío Bío programme and the company. Collaboration is built on a win-win basis for all programme and the company. Collaboration is built on a win-win basis for all participants: the university benefits from R&D work and practical learning participants: the university benefits from R&D work and practical learning experience for its students; the research team includes three students who are experience for its students; the research team includes three students who are developing their thesis. The fishermen benefit from better income and improved developing their thesis. The fishermen benefit from better income and improved quality of life. The company benefits from new business opportunities, quality of life. The company benefits from new business opportunities, production lines and markets and the region benefits from the economic and production lines and markets and the region benefits from the economic and social impact through wealth creation, employment and move from capture social impact through wealth creation, employment and move from capture fisheries to aquaculture. fisheries to aquaculture. The project has made rapid progress and yielded positive outcomes. The R&D The project has made rapid progress and yielded positive outcomes. The R&D results show that the mussel growth rate is faster and compare positively with the results show that the mussel growth rate is faster and compare positively with the existing operations in Los Lagos Region. It is estimated that the production will existing operations in Los Lagos Region. It is estimated that the production will amount to 72 tons of mussels per each centre. Job creation will be directly related amount to 72 tons of mussels per each centre. Job creation will be directly related to the level of mussel production. In order to exploit 20% of the sea area assigned to the level of mussel production. In order to exploit 20% of the sea area assigned (3.4 km2), 15 permanent jobs will be created and, in addition, 40 support staff (3.4 km2), 15 permanent jobs will be created and, in addition, 40 support staff functions will be added. So far, the collaboration has generated 10 new permanent functions will be added. So far, the collaboration has generated 10 new permanent jobs and 100 temporal positions. jobs and 100 temporal positions. The university’s role is not only technical: it has functioned as a neutral broker The university’s role is not only technical: it has functioned as a neutral broker to create trust between fishermen and the companies involved. The project has to create trust between fishermen and the companies involved. The project has built strong co-operation between the different actors, including union leaders of built strong co-operation between the different actors, including union leaders of the two fishermen’s associations, shift managers, marine biologists, university- the two fishermen’s associations, shift managers, marine biologists, university- based researchers, students and state government officials. It has also produced based researchers, students and state government officials. It has also produced important and sophisticated analysis of where the Bío Bío Region has a important and sophisticated analysis of where the Bío Bío Region has a comparative advantage and why – in what quality and temperature conditions comparative advantage and why – in what quality and temperature conditions favourable for a specific type of aquaculture. Finally, the collaboration has favourable for a specific type of aquaculture. Finally, the collaboration has contributed to the re-training of the workforce away from capture fisheries to contributed to the re-training of the workforce away from capture fisheries to aquaculture which is important to the future of the fisheries cluster. A new aquaculture which is important to the future of the fisheries cluster. A new vocational education institution has been established in Coronel to support the vocational education institution has been established in Coronel to support the development of aquaculture. development of aquaculture.

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Box 4.2. UCSC building sustainable communities (continued) Box 4.2. UCSC building sustainable communities (continued)

Cañete Agricultural Technology Transfer Centre building sustainable Cañete Agricultural Technology Transfer Centre building sustainable rural development on Mapuche tradition rural development on Mapuche tradition The Bío Bío Region has the fourth biggest indigenous population in Chile The Bío Bío Region has the fourth biggest indigenous population in Chile (54 000 in 2002), mostly Mapuche (53 000). There is a high concentration of (54 000 in 2002), mostly Mapuche (53 000). There is a high concentration of Mapuche in the Arauco province which is one of the poorest areas in Chile. Mapuche in the Arauco province which is one of the poorest areas in Chile. While progress has been made in access to formal education, the generation gap While progress has been made in access to formal education, the generation gap among Mapuche is greater than among non-indigenous population. The among Mapuche is greater than among non-indigenous population. The Universidad Católica de la Santísima Concepción is the only higher education Universidad Católica de la Santísima Concepción is the only higher education institution with a permanent presence and a campus in the province. Around institution with a permanent presence and a campus in the province. Around 1 500 students attend the University’s Cañete Agricultural Technology Transfer 1 500 students attend the University’s Cañete Agricultural Technology Transfer Centre. Centre. In 2009, the centre launched technology transfer activities to serve 200 rural In 2009, the centre launched technology transfer activities to serve 200 rural and Mapuche families. The aim is help improve graduate retention and build and Mapuche families. The aim is help improve graduate retention and build entrepreneurship based on Mapuche traditions. Based on a 70 hectare area, the entrepreneurship based on Mapuche traditions. Based on a 70 hectare area, the centre aims to develop a productive cluster extending from environmentally centre aims to develop a productive cluster extending from environmentally sustainable cultivation, fertilisation technology and organic production to sustainable cultivation, fertilisation technology and organic production to management and entrepreneurship training. The purpose is to develop and management and entrepreneurship training. The purpose is to develop and produce wine, livestock (beef and pork) and vegetable products for export produce wine, livestock (beef and pork) and vegetable products for export purposes. The university has identified an export company that will support the purposes. The university has identified an export company that will support the pursuit. pursuit. While the project is at its early stages and too new to be evaluated, it holds While the project is at its early stages and too new to be evaluated, it holds much promise and represents the single most important response of the higher much promise and represents the single most important response of the higher education institutions in the Bío Bío Region to collaborate with the Mapuche education institutions in the Bío Bío Region to collaborate with the Mapuche population. population.

4.4 Rural development: integrated approach to local economic and 4.4 Rural development: integrated approach to local economic and social development social development

Because of the reduced role that agriculture plays in employment, rural Because of the reduced role that agriculture plays in employment, rural development requires diversification of the rural economy based on the development requires diversification of the rural economy based on the analysis of existing and potential economic circuits targeting increased analysis of existing and potential economic circuits targeting increased added-value. The capacity of local public officials to devise and supervise added-value. The capacity of local public officials to devise and supervise programmes with important public investment components aiming at programmes with important public investment components aiming at diversification is a strategic element in this approach. Administrative diversification is a strategic element in this approach. Administrative divisions and local economic development requirements based on the divisions and local economic development requirements based on the recognition of links between firms (supply chains, complementary products, recognition of links between firms (supply chains, complementary products, shared local know-how based on natural or historical assets) seldom shared local know-how based on natural or historical assets) seldom

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coincide. Strategic planning needs to bring together public and private coincide. Strategic planning needs to bring together public and private partners from different areas, often astride administrative boundaries. partners from different areas, often astride administrative boundaries. At the end of the 1990s, the creation of voluntary “Planning Territories” At the end of the 1990s, the creation of voluntary “Planning Territories” was authorised in Chile. They represent groups of communes with common was authorised in Chile. They represent groups of communes with common economic and social characteristics, on the basis of voluntary agreements economic and social characteristics, on the basis of voluntary agreements favouring integrated territorial strategies and projects with critical mass. favouring integrated territorial strategies and projects with critical mass. There are ten of these in the Bío Bío Region, one of the first regions to apply There are ten of these in the Bío Bío Region, one of the first regions to apply the concept. AMDEL (Association of Municipalities for Local Economic the concept. AMDEL (Association of Municipalities for Local Economic Development),3 created in 2000, regroups six municipalities from the Development),3 created in 2000, regroups six municipalities from the central-eastern part of the region, three belonging to the province of central-eastern part of the region, three belonging to the province of Concepción and three to the province of Bío Bío.4 Concepción and three to the province of Bío Bío.4

Box 4.3. Universities supporting rural economic diversification Box 4.3. Universities supporting rural economic diversification

In 2003, on the basis of preliminary findings from a study carried out in 1998 In 2003, on the basis of preliminary findings from a study carried out in 1998 in a single municipality of Bío Bío (Coelemu, Province of Ñuble), the University in a single municipality of Bío Bío (Coelemu, Province of Ñuble), the University of Bío Bío, within its Centre for Urban and Regional Studies (CEUR), launched a of Bío Bío, within its Centre for Urban and Regional Studies (CEUR), launched a study of local economic circuits within AMDEL territory with support of study of local economic circuits within AMDEL territory with support of SERCOTEC (Technical Cooperation Service, Ministry of Economy) and the SERCOTEC (Technical Cooperation Service, Ministry of Economy) and the regional government. The study entitled “Networks and Opportunities for regional government. The study entitled “Networks and Opportunities for Development: the case of local economic circuits in the inner prairies of the Development: the case of local economic circuits in the inner prairies of the Region of Bío Bío” (Gatica-Neira, et al. 2008) analysed the economy of the Region of Bío Bío” (Gatica-Neira, et al. 2008) analysed the economy of the territory which is dominated by agriculture and forestry. It came forward with a territory which is dominated by agriculture and forestry. It came forward with a number of conditions to unleash the territory’s development potential: number of conditions to unleash the territory’s development potential: • A vision of education and training at the level of the territory aiming • A vision of education and training at the level of the territory aiming innovation and entrepreneurship innovation and entrepreneurship • Integrated management of tourism circuits within the territory • Integrated management of tourism circuits within the territory • Integration of big firms into territorial development projects linked with • Integration of big firms into territorial development projects linked with the production of local goods and services requiring incubation the production of local goods and services requiring incubation • Creation of territorial information systems • Creation of territorial information systems • Development of human capital within local governments so as to carry • Development of human capital within local governments so as to carry forward local development strategies requiring partnerships. forward local development strategies requiring partnerships. The training component, carried out by the University of Bío Bío since 2008 The training component, carried out by the University of Bío Bío since 2008 within its public policy programme in favour of around 20 local civil servants up within its public policy programme in favour of around 20 local civil servants up to now includes: i) elaboration and management of projects, ii) management to now includes: i) elaboration and management of projects, ii) management techniques and iii) cooperative management. The creation of a diploma in techniques and iii) cooperative management. The creation of a diploma in strategic territorial management is now being planned by the university. strategic territorial management is now being planned by the university. The new development practices introduced by AMDEL were awarded the first The new development practices introduced by AMDEL were awarded the first place in the new “Territorio Chile” prize in 2008. The methodology of the place in the new “Territorio Chile” prize in 2008. The methodology of the economic circuit study carried out by the University of Bío Bío is being economic circuit study carried out by the University of Bío Bío is being replicated in another area of the Bío Bío Region and in the Region of replicated in another area of the Bío Bío Region and in the Region of La Araucanía. La Araucanía.

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On the basis of preliminary findings from a study carried out in 1998 in On the basis of preliminary findings from a study carried out in 1998 in a single municipality of Bío Bío (Coelemu, Province of Ñuble), the a single municipality of Bío Bío (Coelemu, Province of Ñuble), the University of Bío Bío started a follow-up study of local economic circuits. University of Bío Bío started a follow-up study of local economic circuits. The study itself as well as the collaborative action and the subsequent The study itself as well as the collaborative action and the subsequent capacity building that was achieved by the university can be considered as capacity building that was achieved by the university can be considered as best practices in territorial development (OECD, 2006) based on close best practices in territorial development (OECD, 2006) based on close cooperation between different levels of government and local initiative akin cooperation between different levels of government and local initiative akin to certain features of Place-based policies5 like LEADER6 deployed in to certain features of Place-based policies5 like LEADER6 deployed in OECD member countries (See Box 4.3). OECD member countries (See Box 4.3).

4.5 Underutilised potential in environmental and cultural development 4.5 Underutilised potential in environmental and cultural development

Two fields revealing underutilised potential in the region are Two fields revealing underutilised potential in the region are environmental sustainability and cultural development. The outstanding environmental sustainability and cultural development. The outstanding economic growth of Chile over the past decades has led to increased economic growth of Chile over the past decades has led to increased pressures on the environment. While much of the economic growth has pressures on the environment. While much of the economic growth has concentrated in urban areas, many rural and peri-urban areas have also been concentrated in urban areas, many rural and peri-urban areas have also been affected. Environmental risks in the Bío Bío Region include soil affected. Environmental risks in the Bío Bío Region include soil degradation, reduced marine biomass, pollution from industrial activity, degradation, reduced marine biomass, pollution from industrial activity, damage to local ecosystems through the construction of hydroelectric power damage to local ecosystems through the construction of hydroelectric power plants and risks associated with fuel distribution, garbage dumps and plants and risks associated with fuel distribution, garbage dumps and stocking areas. stocking areas. The universities in the Bío Bío Region have a wide variety of study The universities in the Bío Bío Region have a wide variety of study programmes and research activities in environmental sustainability, which programmes and research activities in environmental sustainability, which are beginning to reach critical mass. A degree of specialisation exists among are beginning to reach critical mass. A degree of specialisation exists among higher education institutions, each supporting different aspects of higher education institutions, each supporting different aspects of sustainability (see Box 4.4). The various programmes have impact on sustainability (see Box 4.4). The various programmes have impact on regional development through informing policy development to improve regional development through informing policy development to improve environmental protection (water and soil) and regulation, technology environmental protection (water and soil) and regulation, technology transfer linked to industrial processes, renewable energy sources, clean transfer linked to industrial processes, renewable energy sources, clean technologies, and through urban development analysis and strategies. There technologies, and through urban development analysis and strategies. There is, however, limited evidence of collaboration among higher education is, however, limited evidence of collaboration among higher education institutions in the region. In fact, it appears to be easier to forge such institutions in the region. In fact, it appears to be easier to forge such collaboration with partners outside the region, as the COPAS example collaboration with partners outside the region, as the COPAS example shows. In addition, environmental sustainability is not yet integrated across shows. In addition, environmental sustainability is not yet integrated across study programmes but appears as an add-on. As a result, the research study programmes but appears as an add-on. As a result, the research activity around sustainability has not yet generated green growth in the activity around sustainability has not yet generated green growth in the region. region. While good policy design in advancing sustainable development is While good policy design in advancing sustainable development is essential, implementing green growth strategy will go beyond the power of essential, implementing green growth strategy will go beyond the power of any government. Success will hinge upon profound changes in individuals’ any government. Success will hinge upon profound changes in individuals’ behaviour which can be encouraged by both “coercive” (e.g. regulatory or behaviour which can be encouraged by both “coercive” (e.g. regulatory or

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fiscal measures) and “compliance” approaches, for example better fiscal measures) and “compliance” approaches, for example better information and understanding as well as awareness raising. Higher information and understanding as well as awareness raising. Higher education institutions can play an important role in raising awareness among education institutions can play an important role in raising awareness among the local population. the local population.

Box 4.4. Universities supporting environmental sustainability Box 4.4. Universities supporting environmental sustainability

Universities in the Bío Bío Region have a wide portfolio of study programmes Universities in the Bío Bío Region have a wide portfolio of study programmes and research activities in the field of environmental sustainability. Universidad and research activities in the field of environmental sustainability. Universidad Católica de la Santísima Concepción has a Centre for Maritime and Harbour Católica de la Santísima Concepción has a Centre for Maritime and Harbour Research (CIMP) that focuses on research on how coastal border territories are Research (CIMP) that focuses on research on how coastal border territories are organised, and a Regional Centre for Environmental Studies (CREA) that focuses organised, and a Regional Centre for Environmental Studies (CREA) that focuses on the study of marine populations and marine ecology. University of Bío Bío on the study of marine populations and marine ecology. University of Bío Bío has a Centre of Wood Technology that contributes to the development of products has a Centre of Wood Technology that contributes to the development of products with higher added value for the forest industry, and an Urban Laboratory, with higher added value for the forest industry, and an Urban Laboratory, oriented towards territorial and urban management. The San Sebastián oriented towards territorial and urban management. The San Sebastián University has a Centre for Rescuing and Rehabilitating Wild Animals and a University has a Centre for Rescuing and Rehabilitating Wild Animals and a Recovery Project for the “Tres Pascualas” pond. Universidad del Desarrollo has a Recovery Project for the “Tres Pascualas” pond. Universidad del Desarrollo has a Centre for Environmental Engineering Studies (CEIA). Centre for Environmental Engineering Studies (CEIA). University of Concepción has a Programme for Renewable Energies that University of Concepción has a Programme for Renewable Energies that collaborates in the BIONERCEL Consortium to boost bio-fuel production using collaborates in the BIONERCEL Consortium to boost bio-fuel production using forest biomass. University of Concepción has also a Centre for Environmental forest biomass. University of Concepción has also a Centre for Environmental Sciences (EULA), which develops research on environmental impacts and offers Sciences (EULA), which develops research on environmental impacts and offers a doctoral programme in environmental studies with specialisation in aquatic a doctoral programme in environmental studies with specialisation in aquatic systems, territorial planning and environmental engineering. EULA has generated systems, territorial planning and environmental engineering. EULA has generated 29 technology transfer projects to companies and other entities (contract budget 29 technology transfer projects to companies and other entities (contract budget of about USD 2.9 million) and 40 research projects (budget about of about USD 2.9 million) and 40 research projects (budget about USD 2.1 million). It has 20 PhD researchers, 61 postgraduate and USD 2.1 million). It has 20 PhD researchers, 61 postgraduate and 182 undergraduate students. EULA Centre has monitored the water quality in the 182 undergraduate students. EULA Centre has monitored the water quality in the region for many years and has contributed to the regulation in this field. region for many years and has contributed to the regulation in this field. The University of Concepción (UDEC) also has created, in collaboration with The University of Concepción (UDEC) also has created, in collaboration with the Universidad Austral de Chile, the Centre for South-eastern Pacific the Universidad Austral de Chile, the Centre for South-eastern Pacific Oceanographic Research, COPAS. It initially started with funds from the Centres Oceanographic Research, COPAS. It initially started with funds from the Centres of Excellence programme of the National Commission for Science and of Excellence programme of the National Commission for Science and Technology (CONICYT). It received additional financial support from Technology (CONICYT). It received additional financial support from Fundación Andes, MECESUP programme of the Ministry of Education and Fundación Andes, MECESUP programme of the Ministry of Education and University of Concepción. Since its creation in March 2002, COPAS has University of Concepción. Since its creation in March 2002, COPAS has generated 217 scientific articles (ISI), 2 books, 23 book chapters and more than generated 217 scientific articles (ISI), 2 books, 23 book chapters and more than 50 undergraduate theses (UDEC, 2009). In addition, COPAS runs an extensive 50 undergraduate theses (UDEC, 2009). In addition, COPAS runs an extensive outreach programme to disseminate knowledge on sustainable environmental outreach programme to disseminate knowledge on sustainable environmental development to inform the local community. The outreach programme includes development to inform the local community. The outreach programme includes school visits, regional meetings for water researchers, and workshops for school visits, regional meetings for water researchers, and workshops for elementary and high schools teachers. In addition, COPAS is building a elementary and high schools teachers. In addition, COPAS is building a knowledge base on the public domain to inform and support policy regarding knowledge base on the public domain to inform and support policy regarding oceans and climate change. oceans and climate change.

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The Bío Bío Region would benefit from a stronger contribution of The Bío Bío Region would benefit from a stronger contribution of higher education institutions to sustainable environmental development. higher education institutions to sustainable environmental development. This could happen in many different ways, for example by i) generating This could happen in many different ways, for example by i) generating human capital in areas of sustainable development through learning and human capital in areas of sustainable development through learning and further education programmes; ii) acting as a source of expertise through further education programmes; ii) acting as a source of expertise through research, consultancy and demonstration; iii) playing a brokerage role in research, consultancy and demonstration; iii) playing a brokerage role in bringing together diverse regional actors to sustainability process; bringing together diverse regional actors to sustainability process; iv) demonstrating good practice through on campus waste management and iv) demonstrating good practice through on campus waste management and development activities, strategic planning, building design, waste development activities, strategic planning, building design, waste minimisation and water and energy efficiency practice, responsible minimisation and water and energy efficiency practice, responsible purchasing programmes and pursuing good citizen type initiatives like purchasing programmes and pursuing good citizen type initiatives like “Green Campus” (OECD, 2007). For example, education buildings make a “Green Campus” (OECD, 2007). For example, education buildings make a substantial direct contribution to carbon emissions through their substantial direct contribution to carbon emissions through their construction, maintenance and use. Their use, for instance, the times during construction, maintenance and use. Their use, for instance, the times during the day when they are open and the periods of the year during which they the day when they are open and the periods of the year during which they operate, also have significant indirect impacts on carbon emissions through operate, also have significant indirect impacts on carbon emissions through generation of road traffic and energy use of the buildings. generation of road traffic and energy use of the buildings. Higher education institutions in the Bío Bío Region take pride in Higher education institutions in the Bío Bío Region take pride in contributing to cultural assets and cultural development. Particularly, the contributing to cultural assets and cultural development. Particularly, the traditional CRUCH universities offer a range of study programmes, cultural traditional CRUCH universities offer a range of study programmes, cultural activities and spaces that are also open to a wider public. Most activities are activities and spaces that are also open to a wider public. Most activities are concentrated in Concepción although there are also some efforts to reach out concentrated in Concepción although there are also some efforts to reach out to more remote areas. The universities participate in the leading national and to more remote areas. The universities participate in the leading national and regional associations and funding agencies, including the National Art and regional associations and funding agencies, including the National Art and Culture Council FONDART (National Fund for the Development of Culture Culture Council FONDART (National Fund for the Development of Culture and Arts), the Regional Cultural Secretariat and various consulting and Arts), the Regional Cultural Secretariat and various consulting committees. In addition, faculty and students participate in community committees. In addition, faculty and students participate in community associations adding to the region’s stock of human and social capital. associations adding to the region’s stock of human and social capital. However, no systematic mapping of the links and networks has been made. However, no systematic mapping of the links and networks has been made. Despite considerable efforts and some impressive achievements in the Despite considerable efforts and some impressive achievements in the cultural field (for example the opera productions by the University of cultural field (for example the opera productions by the University of Concepción), the approach remains traditional. In addition, the collaborative Concepción), the approach remains traditional. In addition, the collaborative inter-institutional action in this field is in its infancy. The region would inter-institutional action in this field is in its infancy. The region would benefit from a strategy that sees arts and culture as an agent of development benefit from a strategy that sees arts and culture as an agent of development through: i) enhancing the quality of life of the diverse population; ii) indirect through: i) enhancing the quality of life of the diverse population; ii) indirect economic benefits in attracting and retaining talent which can drive the economic benefits in attracting and retaining talent which can drive the knowledge society and iii) contribution to the creative industries through knowledge society and iii) contribution to the creative industries through enterprise formation, growth, productivity and employment. enterprise formation, growth, productivity and employment.

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Box 4.5. New Zealand and the Māori Box 4.5. New Zealand and the Māori

New Zealand has a Māori minority of 652 900 inhabitants,7 representing New Zealand has a Māori minority of 652 900 inhabitants,7 representing 15.3% of the country’s population. Higher education institutions in New Zealand 15.3% of the country’s population. Higher education institutions in New Zealand have an important role in informing policy, increasing teaching and research have an important role in informing policy, increasing teaching and research related to indigenous interests and needs. Although Māori, on average, have related to indigenous interests and needs. Although Māori, on average, have higher poverty and unemployment rates than the rest of the New Zealand higher poverty and unemployment rates than the rest of the New Zealand population, their conditions are improving. For example, by 2006 the value added population, their conditions are improving. For example, by 2006 the value added by Māori enterprises was NZD 8.3 billion reaching 5.3% of the national GDP. by Māori enterprises was NZD 8.3 billion reaching 5.3% of the national GDP. The number of Māori entrepreneurs has increased by 21.8% since 2001, far more The number of Māori entrepreneurs has increased by 21.8% since 2001, far more than non-Māori ones. than non-Māori ones. Māori people have made significant progress in maintaining their language. Māori people have made significant progress in maintaining their language. Many New Zealand schools now teach Māori culture and language and pre- Many New Zealand schools now teach Māori culture and language and pre- school kohanga reo (language nests) have been launched to teach children school kohanga reo (language nests) have been launched to teach children exclusively in Māori. The language nests are now extended through secondary exclusively in Māori. The language nests are now extended through secondary schools. The universities have increased the number of Māori academics and the schools. The universities have increased the number of Māori academics and the amount of their teaching and research activities. They have also developed amount of their teaching and research activities. They have also developed academic work to understand and promote Māori culture and activities, provided academic work to understand and promote Māori culture and activities, provided spaces and specific services oriented to Māori students and teachers, developed spaces and specific services oriented to Māori students and teachers, developed academic debate about political and business organisations for Māori and academic debate about political and business organisations for Māori and developed a Māori innovation framework. developed a Māori innovation framework. Māori academic leadership has been promoted through the Manu Ao Māori academic leadership has been promoted through the Manu Ao Academy, an inter-University Māori Academy that aims to promote Māori Academy, an inter-University Māori Academy that aims to promote Māori leadership, advance Māori scholarship excellence and strengthen the interface leadership, advance Māori scholarship excellence and strengthen the interface between Māori professionals and academics. The Māori Academy, in association between Māori professionals and academics. The Māori Academy, in association with the eight New Zealand universities and supported by the New Zealand Vice- with the eight New Zealand universities and supported by the New Zealand Vice- Chancellors’ Committee, provides a wide range of activities, including weekly Chancellors’ Committee, provides a wide range of activities, including weekly seminars, lectures, academic fora, leaders groups and other related events at each seminars, lectures, academic fora, leaders groups and other related events at each university campus. The focus is to strengthen the interface between professional university campus. The focus is to strengthen the interface between professional practice and university education so that academic courses and research can be practice and university education so that academic courses and research can be better aligned with workplace demands, and practitioners can engage with and better aligned with workplace demands, and practitioners can engage with and contribute in a meaningful way to the university sector. This collaboration contribute in a meaningful way to the university sector. This collaboration between Māori professional organisations and universities at local levels provides between Māori professional organisations and universities at local levels provides a focused and integrated approach to Māori achievement and participation in the a focused and integrated approach to Māori achievement and participation in the society and economy. society and economy.

Sources: Manu Ao Academy (2009), Presentation, www.manu- Sources: Manu Ao Academy (2009), Presentation, www.manu- ao.ac.nz/content/files/manu_ao_presentation.pdf, accessed 17 January 2010; New ao.ac.nz/content/files/manu_ao_presentation.pdf, accessed 17 January 2010; New Zealand’s National Statistical Office (2009), Māori population estimates at 30 June Zealand’s National Statistical Office (2009), Māori population estimates at 30 June 1991–2009, www.stats.govt.nz/methods_and_services/access-data/tables/maori- 1991–2009, www.stats.govt.nz/methods_and_services/access-data/tables/maori- population-estimates.aspx, accessed 17 January 2010. population-estimates.aspx, accessed 17 January 2010.

Higher education institutions can be major players in making their Higher education institutions can be major players in making their regions more international and multicultural. While there was some regions more international and multicultural. While there was some

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evidence of growing interest and activity among higher education evidence of growing interest and activity among higher education institutions to collaborate with Mapuche, the local indigenous population, institutions to collaborate with Mapuche, the local indigenous population, these activities remain isolated and small in scale. Encouraging international these activities remain isolated and small in scale. Encouraging international examples come from, for example New Zealand were the universities have examples come from, for example New Zealand were the universities have played an important role to promote Māori leadership development and played an important role to promote Māori leadership development and participation in the society and economy (Box 4.5). participation in the society and economy (Box 4.5). Higher education institutions in the Bío Bío Region are gradually Higher education institutions in the Bío Bío Region are gradually increasing their international networking, mainly with Spanish speaking increasing their international networking, mainly with Spanish speaking institutions and regions. While the number of international faculty and institutions and regions. While the number of international faculty and students is still modest, there is potential for talent attraction through joint students is still modest, there is potential for talent attraction through joint marketing and better services. This area is being addressed in the current marketing and better services. This area is being addressed in the current PMC (Programme for Improvement of Competitiveness) for Education, PMC (Programme for Improvement of Competitiveness) for Education, Science and Technology (Bío Bío Educates and Innovates). In future, more Science and Technology (Bío Bío Educates and Innovates). In future, more effective use of the higher education institutions’ international linkages with effective use of the higher education institutions’ international linkages with international research and education should be made to benefit the region, international research and education should be made to benefit the region, for example by linking internal faculty and students with the region and its for example by linking internal faculty and students with the region and its working life. For example the University of Granada in Andalusia, Spain, working life. For example the University of Granada in Andalusia, Spain, currently the most attractive Spanish university for exchange students, has currently the most attractive Spanish university for exchange students, has taken steps to link the international students with the local businesses. taken steps to link the international students with the local businesses.

Conclusions and recommendations Conclusions and recommendations

Rural areas in the Bío Bío Region constitute an asset for the region Rural areas in the Bío Bío Region constitute an asset for the region because of their wealth in natural resources that put the region in top because of their wealth in natural resources that put the region in top positions within the country in certain primary sector activities such as positions within the country in certain primary sector activities such as forestry, fishing or selected agricultural products. These rural areas also face forestry, fishing or selected agricultural products. These rural areas also face important challenges in terms of unemployment, poverty, out-migration and important challenges in terms of unemployment, poverty, out-migration and environmental degradation. Ethnically diverse population is also an asset to environmental degradation. Ethnically diverse population is also an asset to the region because of their wealth of cultural resources that can help position the region because of their wealth of cultural resources that can help position the region as a diverse, tolerant and attractive place to live and visit. the region as a diverse, tolerant and attractive place to live and visit. Policies deployed at the national and regional levels focus on innovation Policies deployed at the national and regional levels focus on innovation in these areas and the three first PMCs defined by the Regional Innovation in these areas and the three first PMCs defined by the Regional Innovation and Productive Development Agency (ARIDP) within the Agenda for and Productive Development Agency (ARIDP) within the Agenda for Innovation and Regional Competitiveness (agriculture, tourism, higher Innovation and Regional Competitiveness (agriculture, tourism, higher education) relate directly to or have impact in rural areas. Higher education education) relate directly to or have impact in rural areas. Higher education institutions in the Bío Bío Region are responsive to rural needs, whether in institutions in the Bío Bío Region are responsive to rural needs, whether in terms of their geographical spread, their areas of specialised learning and terms of their geographical spread, their areas of specialised learning and research that directly contribute to local employment and to the rural research that directly contribute to local employment and to the rural economy. economy. Higher education institutions have strongly contributed with their Higher education institutions have strongly contributed with their policies and projects to widening access to higher education to students from policies and projects to widening access to higher education to students from

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the lowest income quintile families, many of which reside in rural areas. the lowest income quintile families, many of which reside in rural areas. They render important services to local communities, particularly in the They render important services to local communities, particularly in the health sector. In addition, they provide significant contributions to local health sector. In addition, they provide significant contributions to local development by bringing in the training and the knowledge required for the development by bringing in the training and the knowledge required for the definition and implementation of regional strategies. Many of these definition and implementation of regional strategies. Many of these initiatives are built on innovative approaches to address the economic and initiatives are built on innovative approaches to address the economic and social challenges of rural areas in the Bío Bío Region. social challenges of rural areas in the Bío Bío Region. However, limited resources are spread thinly. There is a lack of critical However, limited resources are spread thinly. There is a lack of critical mass to generate projects which will have real impact at the local and mass to generate projects which will have real impact at the local and regional level and generate multiplier effects. Collaborative mechanisms regional level and generate multiplier effects. Collaborative mechanisms among higher education institutions to build capacity and foster joint efforts among higher education institutions to build capacity and foster joint efforts for regional development remain limited in scope and representation. In for regional development remain limited in scope and representation. In spite of broader initiatives such as the PMCs, the picture of the diverse spite of broader initiatives such as the PMCs, the picture of the diverse programmes and projects with participation of higher education institutions programmes and projects with participation of higher education institutions is one of fragmentation built on generally separate and non-coordinated is one of fragmentation built on generally separate and non-coordinated initiatives stemming more from specific circumstances than an overarching initiatives stemming more from specific circumstances than an overarching vision of needs and possible converging efforts. There is considerable vision of needs and possible converging efforts. There is considerable underutilised potential for example in environmental and cultural underutilised potential for example in environmental and cultural development as well as international collaboration. development as well as international collaboration. To continue to deepen the higher education institutions’ contribution to To continue to deepen the higher education institutions’ contribution to the social, cultural and environmental development in the Bío Bío Region the social, cultural and environmental development in the Bío Bío Region the OECD/World Bank Team recommends: the OECD/World Bank Team recommends: • Respecting the freedom of each institution to engage in the • Respecting the freedom of each institution to engage in the programmes and projects of its choice, a systematic exchange of programmes and projects of its choice, a systematic exchange of information and experience should be put in place between higher information and experience should be put in place between higher education institutions in social, cultural and environmental matters education institutions in social, cultural and environmental matters facilitated by the regional government in order to bring greater facilitated by the regional government in order to bring greater efficiency and balanced coverage. Such a forum could organise efficiency and balanced coverage. Such a forum could organise thematic events, with regular information retrieval and exchange thematic events, with regular information retrieval and exchange facilitated by a dedicated website. As a first step, higher education facilitated by a dedicated website. As a first step, higher education institutions’ current connections, initiatives and projects involving institutions’ current connections, initiatives and projects involving stakeholder collaboration, community development and/or outreach stakeholder collaboration, community development and/or outreach should be mapped and published in the collaboration platform. should be mapped and published in the collaboration platform. • In addition to widening access and providing services to various • In addition to widening access and providing services to various communities, higher education institutions should engage in long- communities, higher education institutions should engage in long- term community development seeking ways to empower term community development seeking ways to empower communities to find their own solutions to various economic, social, communities to find their own solutions to various economic, social, cultural, environmental challenges which are global, national and cultural, environmental challenges which are global, national and local in nature. They should consider ways to move away from local in nature. They should consider ways to move away from combating poverty to fostering wealth and job creation through combating poverty to fostering wealth and job creation through social entrepreneurship and view the region as “a laboratory” for social entrepreneurship and view the region as “a laboratory” for

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developing research, students’ work-based and experiental learning developing research, students’ work-based and experiental learning and development projects. and development projects. • The region should, in collaboration with the higher education • The region should, in collaboration with the higher education institutions and other stakeholders, develop a strategy that sees arts institutions and other stakeholders, develop a strategy that sees arts and culture as an agent of development through: i) direct benefit in and culture as an agent of development through: i) direct benefit in enhancing the quality of life of the diverse population; ii) indirect enhancing the quality of life of the diverse population; ii) indirect economic benefits in attracting and retaining talent which can drive economic benefits in attracting and retaining talent which can drive the knowledge society, and iii) a direct contribution to the creative the knowledge society, and iii) a direct contribution to the creative industries through enterprise formation, growth, productivity and industries through enterprise formation, growth, productivity and employment. This strategy should address the needs of the diverse employment. This strategy should address the needs of the diverse populations in the region and also enhance the internationalisation populations in the region and also enhance the internationalisation of the region. of the region. • The region should, in collaboration with higher education • The region should, in collaboration with higher education institutions and public and private sector increase efforts to support institutions and public and private sector increase efforts to support sustainable environmental and economic development through a sustainable environmental and economic development through a comprehensive strategy bringing together diverse regional actors to comprehensive strategy bringing together diverse regional actors to sustainability process. Higher education institutions should scale up sustainability process. Higher education institutions should scale up their efforts to provide learning and further education programmes their efforts to provide learning and further education programmes in sustainable development; to act as a source of expertise through in sustainable development; to act as a source of expertise through research, consultancy, strategic planning and demonstration; to research, consultancy, strategic planning and demonstration; to demonstrate good practice through campus waste management and demonstrate good practice through campus waste management and development activities, strategic planning. Building design, waste development activities, strategic planning. Building design, waste minimisation and water and energy efficiency practice, responsible minimisation and water and energy efficiency practice, responsible purchasing programmes and good citizen type initiatives like purchasing programmes and good citizen type initiatives like “Green Campus”. “Green Campus”.

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Notes Notes

1. The Human Development Index (HDI) was introduced in the first 1. The Human Development Index (HDI) was introduced in the first UNDP’s Human Development Report (1990) as a new way of measuring UNDP’s Human Development Report (1990) as a new way of measuring development by combining indicators of life expectancy, educational development by combining indicators of life expectancy, educational attainment and income into an index. attainment and income into an index. 2. The first neighbourhood associations appeared in Chile in 1965. They are 2. The first neighbourhood associations appeared in Chile in 1965. They are of a voluntary nature and have proved to be useful vehicles for citizen of a voluntary nature and have proved to be useful vehicles for citizen involvement in local decision-making. involvement in local decision-making. 3. Association of Municipalities for Local Economic Development 3. Association of Municipalities for Local Economic Development (Asociación de Municipios para el Desarrollo Económico Local, (Asociación de Municipios para el Desarrollo Económico Local, AMDEL) AMDEL) 4. Province of Concepción: Florida, Hualqui, Santa Juana; Province of 4. Province of Concepción: Florida, Hualqui, Santa Juana; Province of Bío Bío: San Rosendo, Yumbel, Cabrero Bío Bío: San Rosendo, Yumbel, Cabrero 5. The OECD Territorial Review of Chile (2009) indicates that 5. The OECD Territorial Review of Chile (2009) indicates that decentralisation trends in Chile need to be pursued, in particular by decentralisation trends in Chile need to be pursued, in particular by strengthening the role of regional governments. It also states that Chile is strengthening the role of regional governments. It also states that Chile is still lacking a true rural development policy as measures in favour of rural still lacking a true rural development policy as measures in favour of rural areas remain mostly oriented towards agriculture areas remain mostly oriented towards agriculture 6. See “A LEADER Dissemination Guide Book based on programme 6. See “A LEADER Dissemination Guide Book based on programme experience in Finland, Ireland and the Czech Republic”, Finnish Rural experience in Finland, Ireland and the Czech Republic”, Finnish Rural Policy Committee, Helsinki 2008 Policy Committee, Helsinki 2008 7. New Zealand’s National Statistical Office. Māori population estimates at 7. New Zealand’s National Statistical Office. Māori population estimates at 30 June 1991–2009 (New Zealand’s National Statistical Office, 2009). 30 June 1991–2009 (New Zealand’s National Statistical Office, 2009).

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References References

Gatica-Neira, F. et al. (2008), “Redes y oportunidades de desarrollo: el caso Gatica-Neira, F. et al. (2008), “Redes y oportunidades de desarrollo: el caso de los circuitos económicos locales en el secano interior de la Región del de los circuitos económicos locales en el secano interior de la Región del Bío Bío”, University of Bío Bío, Concepción, pp. 261-268. Bío Bío”, University of Bío Bío, Concepción, pp. 261-268. Manu Ao Academy (2009), Presentation, www.manu- Manu Ao Academy (2009), Presentation, www.manu- ao.ac.nz/content/files/manu_ao_presentation.pdf, accessed 5 December ao.ac.nz/content/files/manu_ao_presentation.pdf, accessed 5 December 2010. 2010. New Zealand’s National Statistical Office (2009), Māori population New Zealand’s National Statistical Office (2009), Māori population estimates at 30 June 1991–2009, estimates at 30 June 1991–2009, www.stats.govt.nz/methods_and_services/access-data/tables/maori- www.stats.govt.nz/methods_and_services/access-data/tables/maori- population-estimates.aspx population-estimates.aspx OECD (2006), The New Rural Paradigm: Policies and Governance, Rural OECD (2006), The New Rural Paradigm: Policies and Governance, Rural Policy Reviews, OECD Publishing, Paris. Policy Reviews, OECD Publishing, Paris. OECD (2009), OECD Territorial Reviews: Chile 2009, OECD Publishing, OECD (2009), OECD Territorial Reviews: Chile 2009, OECD Publishing, Paris. Paris. UDEC (University of Concepción) (2009), Centre for South-eastern Pacific UDEC (University of Concepción) (2009), Centre for South-eastern Pacific Oceanographic Research (COPAS) website, http://copas.udec.cl/eng, Oceanographic Research (COPAS) website, http://copas.udec.cl/eng, accessed 16 November 2009. accessed 16 November 2009. UNDP (United Nations Development Programme) (2004), Las Trayectorias UNDP (United Nations Development Programme) (2004), Las Trayectorias del Desarrollo Humano en las Comunas de Chile 1994-2003 (Human del Desarrollo Humano en las Comunas de Chile 1994-2003 (Human Development Pathways in Chile’s Municipalities 1994-2003), Development Pathways in Chile’s Municipalities 1994-2003), UNDP/MIDEPLAN, Santiago de Chile. UNDP/MIDEPLAN, Santiago de Chile. Wade, P. and P. Rinne (2008), A LEADER Dissemination Guide Book based Wade, P. and P. Rinne (2008), A LEADER Dissemination Guide Book based on programme experience in Finland, Ireland and the Czech Republic, on programme experience in Finland, Ireland and the Czech Republic, Finnish Rural Policy Committee, Helsinki. Finnish Rural Policy Committee, Helsinki.

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Chapter 5: Capacity building for regional co-operation Chapter 5: Capacity building for regional co-operation

Interactions between higher education institutions and the region in which Interactions between higher education institutions and the region in which they are located are beneficial to both parties. For this interaction to take they are located are beneficial to both parties. For this interaction to take place capacity – skills and resources – needs to be built in regional agencies place capacity – skills and resources – needs to be built in regional agencies as well as higher education institutions. This chapter will examine the as well as higher education institutions. This chapter will examine the capacity and capacity building in the regional agencies of the Bío Bío capacity and capacity building in the regional agencies of the Bío Bío Region and its higher education institutions. This chapter will highlight the Region and its higher education institutions. This chapter will highlight the capacity in the institutions and processes in light of the decentralisation capacity in the institutions and processes in light of the decentralisation process and the efforts made by the regional government, regional process and the efforts made by the regional government, regional development agencies and higher education institutions. It will examine development agencies and higher education institutions. It will examine where policies and practices can be improved. This chapter concludes with where policies and practices can be improved. This chapter concludes with recommendations on how to improve regional co-operation. recommendations on how to improve regional co-operation.

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5.1 The decentralisation process – building capacity in the regions 5.1 The decentralisation process – building capacity in the regions

Traditionally, Chile’s regional policy has been largely defined and Traditionally, Chile’s regional policy has been largely defined and implemented in a top-down fashion, leaving little leeway for regional implemented in a top-down fashion, leaving little leeway for regional initiative and capacity building. However, during the past decade, Chile has initiative and capacity building. However, during the past decade, Chile has made greater decentralisation a priority in order to unleash the potential of made greater decentralisation a priority in order to unleash the potential of its regions. This has resulted in policy measures and a string of reforms its regions. This has resulted in policy measures and a string of reforms since 2006-2007 with the aim of providing regional governments with the since 2006-2007 with the aim of providing regional governments with the tools, capacities and legitimacy to improve their autonomy and performance. tools, capacities and legitimacy to improve their autonomy and performance. Between 2006 and 2007 the Chilean government established regional Between 2006 and 2007 the Chilean government established regional development agencies as a means of transferring responsibilities for development agencies as a means of transferring responsibilities for economic development to the regions. These agencies aim to provide an economic development to the regions. These agencies aim to provide an integrated approach to regional development and a forum for public and integrated approach to regional development and a forum for public and private sector stakeholders to design the regional development agenda which private sector stakeholders to design the regional development agenda which serves as the basis for the development of programmes for improvement of serves as the basis for the development of programmes for improvement of competitiveness (PMCs)1 and for defining a strategy and actions to increase competitiveness (PMCs)1 and for defining a strategy and actions to increase the competitiveness of the regional clusters. the competitiveness of the regional clusters. Since 2007, as a result of Chile’s structural reform of regional Since 2007, as a result of Chile’s structural reform of regional administration, the Under-Secretary for Regional Development (SUBDERE) administration, the Under-Secretary for Regional Development (SUBDERE) has invested more than USD 10 million in the creation and development of has invested more than USD 10 million in the creation and development of planning divisions in regional governments. In the Bío Bío Region, the planning divisions in regional governments. In the Bío Bío Region, the Planning and Regional Development Division (DIRPLAN) was created to Planning and Regional Development Division (DIRPLAN) was created to coordinate the regional agenda to promote social, cultural and economical coordinate the regional agenda to promote social, cultural and economical development. DIRPLAN will gradually assume the responsibilities that were development. DIRPLAN will gradually assume the responsibilities that were previously administered by the regional offices of the Ministry of Planning previously administered by the regional offices of the Ministry of Planning and Cooperation (MIDEPLAN) in terms of regional agenda and investment and Cooperation (MIDEPLAN) in terms of regional agenda and investment portfolio. In addition SUBDERE implemented new processes of portfolio. In addition SUBDERE implemented new processes of accreditation and provided incentives and continuous learning for public accreditation and provided incentives and continuous learning for public officials at the regional level in order to strengthen their management officials at the regional level in order to strengthen their management capacity. capacity. The National Innovation Strategy, also launched in 2007, has provided a The National Innovation Strategy, also launched in 2007, has provided a framework for the prioritisation of innovation and competitiveness at the framework for the prioritisation of innovation and competitiveness at the nationwide level. This strategy draws up guidelines to 2020 that include the nationwide level. This strategy draws up guidelines to 2020 that include the increase of R&D spending, the improvement of levels of educational increase of R&D spending, the improvement of levels of educational attainment and entrepreneurial innovation. A main challenge will be to reach attainment and entrepreneurial innovation. A main challenge will be to reach a balance between these national guidelines and the region specific a balance between these national guidelines and the region specific conditions, strengths and challenges. conditions, strengths and challenges. Despite the positive changes, the regional economic agenda is still Despite the positive changes, the regional economic agenda is still largely decided in Santiago. Moving towards place-based policies will largely decided in Santiago. Moving towards place-based policies will

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require changes in the governance system in order to strengthen the regional require changes in the governance system in order to strengthen the regional institutional framework. This will involve increasing the capacities of and institutional framework. This will involve increasing the capacities of and the support to regional governments to help them become active players in the support to regional governments to help them become active players in the discussion, planning and co-ordination of regional development policies. the discussion, planning and co-ordination of regional development policies. Consequently, in October 2009, the regional governance and Consequently, in October 2009, the regional governance and administration act was reformed. According to the act, regional councils will administration act was reformed. According to the act, regional councils will be elected in direct elections. In addition, the regional council will elect its be elected in direct elections. In addition, the regional council will elect its president, who at the beginning will be an honorary figure (in the present president, who at the beginning will be an honorary figure (in the present system, the regional council is presided by the intendant). The competencies system, the regional council is presided by the intendant). The competencies of the president’s position have not yet been defined. In addition new of the president’s position have not yet been defined. In addition new competencies could be devolved to one or more of the regions. Furthermore, competencies could be devolved to one or more of the regions. Furthermore, as of January 2010, the regional development agencies are no longer as of January 2010, the regional development agencies are no longer dependant on the central government but are instead private not-for profit dependant on the central government but are instead private not-for profit organisations in which the regional government is a part owner. The organisations in which the regional government is a part owner. The members of the board of directors of the agencies are nominated by the members of the board of directors of the agencies are nominated by the regional council. regional council. However, while it is too early to evaluate these reforms –some of them However, while it is too early to evaluate these reforms –some of them will come into force after the forthcoming regional elections in 2011 or will come into force after the forthcoming regional elections in 2011 or 2011– they demonstrate the Chilean government’s commitment to 2011– they demonstrate the Chilean government’s commitment to decentralisation and are as such commendable. Governments may fear that decentralisation and are as such commendable. Governments may fear that the capacities are low at the regional level and reluctantly allocate new the capacities are low at the regional level and reluctantly allocate new responsibilities to the regional actors. This is clearly not the case in Chile as responsibilities to the regional actors. This is clearly not the case in Chile as the recent developments show. These new reforms also involve challenges the recent developments show. These new reforms also involve challenges and opportunities for regions like the Bío Bío Region. and opportunities for regions like the Bío Bío Region. In this context, this chapter examines the capacity at the regional level In this context, this chapter examines the capacity at the regional level that can be broadly divided into skills and resources: that can be broadly divided into skills and resources: • Do the government agencies, higher education institutions and other • Do the government agencies, higher education institutions and other stakeholders have adequate skills and competencies to carry out stakeholders have adequate skills and competencies to carry out their work? their work? • Are the financial resources and other assets of sufficient levels and • Are the financial resources and other assets of sufficient levels and adequately allocated to make action possible at the local, regional adequately allocated to make action possible at the local, regional and institutional level? and institutional level?

5.2 Regional development strategy in the Bío Bío Region 5.2 Regional development strategy in the Bío Bío Region

The Bío Bío Region has been in the forefront of regional capacity The Bío Bío Region has been in the forefront of regional capacity building. As early as 2001, “Innova Bío Bío” was launched on the basis of building. As early as 2001, “Innova Bío Bío” was launched on the basis of an agreement between CORFO (a national public agency linked to the an agreement between CORFO (a national public agency linked to the Ministry of Economy) and the regional government, to jointly support Ministry of Economy) and the regional government, to jointly support

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actions fostering competitiveness. This initiative served as model for what actions fostering competitiveness. This initiative served as model for what would be later known as “Innova Chile”. Likewise, in 2004, CORECYT would be later known as “Innova Chile”. Likewise, in 2004, CORECYT (Regional Council for Science and Technology) was created in the Bío Bío (Regional Council for Science and Technology) was created in the Bío Bío Region, the first such council in the country, based on a public-private Region, the first such council in the country, based on a public-private partnership between regional government, business and universities, aiming partnership between regional government, business and universities, aiming to design regional strategies and policies that promote research and create to design regional strategies and policies that promote research and create knowledge networks. knowledge networks. Within the Regional Development Strategy of the Bío Bío Region for Within the Regional Development Strategy of the Bío Bío Region for 2008-2015 education, science, technology and innovation are amongst the 2008-2015 education, science, technology and innovation are amongst the regionally defined strategic priorities. Strategic Line number three relates to regionally defined strategic priorities. Strategic Line number three relates to “Education of quality at the service of individuals, social mobility, economic “Education of quality at the service of individuals, social mobility, economic competitiveness and democratic participation” and Strategic Line number competitiveness and democratic participation” and Strategic Line number four refers to “Science, technology and innovation for a dynamic and four refers to “Science, technology and innovation for a dynamic and competitive regional economy and social development”. competitive regional economy and social development”. Higher education institutions in the Bío Bío Region have been involved Higher education institutions in the Bío Bío Region have been involved in the development and the implementation of the strategic goals to a in the development and the implementation of the strategic goals to a varying degree. They have, for example provided intellectual capacity for varying degree. They have, for example provided intellectual capacity for the preparation of the regional strategies, as the facilitating role of the the preparation of the regional strategies, as the facilitating role of the Centre of Urban and Regional Studies of the University of Bío Bío shows Centre of Urban and Regional Studies of the University of Bío Bío shows (see Box 5.1). (see Box 5.1). The main responsibility for the implementation of the strategic goals The main responsibility for the implementation of the strategic goals defined in the Agenda for Innovation and Regional Competitiveness is defined in the Agenda for Innovation and Regional Competitiveness is carried out by the Regional Development Agency.2 Its board comprises carried out by the Regional Development Agency.2 Its board comprises representatives of regional government, national agencies such as CORFO representatives of regional government, national agencies such as CORFO and the business community. In future and in line with the recent reform, the and the business community. In future and in line with the recent reform, the members of the board will be elected by the regional council and the members of the board will be elected by the regional council and the representation of national government will become weaker. The definition representation of national government will become weaker. The definition and application of the agency’s agenda are carried out in association with and application of the agency’s agenda are carried out in association with public and private sectors, including higher education institutions and civil public and private sectors, including higher education institutions and civil society. society. The three strategic sectors within the Regional Development Agency’s The three strategic sectors within the Regional Development Agency’s agenda in 2008-12 are food and agriculture, tourism, and higher education agenda in 2008-12 are food and agriculture, tourism, and higher education as well as science and technology. These areas are funded on the basis of as well as science and technology. These areas are funded on the basis of PMCs (Programmes for Improvement of Competitiveness), now PMCs (Programmes for Improvement of Competitiveness), now representing at least 10% of the resources of national public agencies representing at least 10% of the resources of national public agencies involved in productive development, according to the budgetary law and to involved in productive development, according to the budgetary law and to which national agencies such as CORFO and funds such as FNDR (National which national agencies such as CORFO and funds such as FNDR (National Fund for Regional Development) or FIC (Innovation Fund for Fund for Regional Development) or FIC (Innovation Fund for Competitiveness) contribute alongside regional funds. Competitiveness) contribute alongside regional funds.

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Box 5.1. UBB mobilising knowledge for regional development Box 5.1. UBB mobilising knowledge for regional development strategy strategy

The Centre for Urban and Regional Studies (CEUR) of the University of The Centre for Urban and Regional Studies (CEUR) of the University of Bío Bío is an interdisciplinary research centre that creates and disseminates Bío Bío is an interdisciplinary research centre that creates and disseminates knowledge on territorial issues. Founded in 1996 to demonstrate the university's knowledge on territorial issues. Founded in 1996 to demonstrate the university's commitment to regional development, while drawing from the experience from commitment to regional development, while drawing from the experience from the Latin American and Caribbean Institute for Economic and Social Planning the Latin American and Caribbean Institute for Economic and Social Planning (ILPES/ECLAC), the centre has contributed to improving the knowledge base in (ILPES/ECLAC), the centre has contributed to improving the knowledge base in the regional issues in the Bío Bío Region and also the quality of the regional the regional issues in the Bío Bío Region and also the quality of the regional decision-making process. decision-making process. In 2008, the centre supported the Regional Government (GORE) in the In 2008, the centre supported the Regional Government (GORE) in the creation of the Regional Development Strategy for 2008-15 (Estrategia Regional creation of the Regional Development Strategy for 2008-15 (Estrategia Regional de Desarrollo, ERD).The centre provided active participation and support in de Desarrollo, ERD).The centre provided active participation and support in collaboration with the German Organisation for International Cooperation collaboration with the German Organisation for International Cooperation (Deutsche Gesellschaft für Technische Zusammenarbeit, GTZ). The strategy (Deutsche Gesellschaft für Technische Zusammenarbeit, GTZ). The strategy process included more than 1 800 people who participated in workshops and process included more than 1 800 people who participated in workshops and interviews throughout the region. The strategy also drew from the initiatives by interviews throughout the region. The strategy also drew from the initiatives by the Regional Agency for Innovation and Productive Development (ARIDP) and the Regional Agency for Innovation and Productive Development (ARIDP) and the Regional Council for Science and Technology (CORECYT). the Regional Council for Science and Technology (CORECYT). The Centre for Urban and Regional Studies has also participated in a nation- The Centre for Urban and Regional Studies has also participated in a nationwide study at the Bío Bío Region which aimed to strengthen regional identities in wide study at the Bío Bío Region which aimed to strengthen regional identities in 15 regions in Chile. The identidad regional study was funded by the Under- 15 regions in Chile. The identidad regional study was funded by the Under- Secretary for Regional Development of the Government of Chile (SUBDERE) Secretary for Regional Development of the Government of Chile (SUBDERE) and the Bío Bío Regional Government. The study identified key elements of the and the Bío Bío Regional Government. The study identified key elements of the Bío Bío identity that need to be promoted to enhance the socio-cultural diversity Bío Bío identity that need to be promoted to enhance the socio-cultural diversity in the region. in the region.

The PMC for Education, Science and Technology (Bío Bío Educates The PMC for Education, Science and Technology (Bío Bío Educates and Innovates) aims to reinforce the higher education cluster in the Bío Bío and Innovates) aims to reinforce the higher education cluster in the Bío Bío Region by a series of diverse actions including the creation of a Centre for Region by a series of diverse actions including the creation of a Centre for the Improvement of Firm Competitiveness, support to aquaculture, the the Improvement of Firm Competitiveness, support to aquaculture, the development of a pole for the health sector and support to improve social development of a pole for the health sector and support to improve social skills among first year university students. The OECD Review of Higher skills among first year university students. The OECD Review of Higher Education in Regional and City Development in the Bío Bío Region is one Education in Regional and City Development in the Bío Bío Region is one of the components of the PMC. of the components of the PMC. The higher education institutions in the Bío Bío Region are beginning to The higher education institutions in the Bío Bío Region are beginning to play an important role in the regional development as the PMC for higher play an important role in the regional development as the PMC for higher education, science and technology shows (Bío Bío Educates and Innovates). education, science and technology shows (Bío Bío Educates and Innovates). Earlier in Chapter 2 some concerns about the PMCs were identified. At the Earlier in Chapter 2 some concerns about the PMCs were identified. At the same time, however, the systematic and empirical nature of the same time, however, the systematic and empirical nature of the identification of priority sectors deserves commendation. It is also evident identification of priority sectors deserves commendation. It is also evident that identifying higher education, science and technology as a priority sector that identifying higher education, science and technology as a priority sector

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has also improved collaboration among the key higher education institutions has also improved collaboration among the key higher education institutions in the region. in the region.

5.3 Partnerships and capacity building in the Bío Bío Region 5.3 Partnerships and capacity building in the Bío Bío Region

The challenges in the Bío Bío Region are manifold, ranging from The challenges in the Bío Bío Region are manifold, ranging from poverty and indigence, environmental degradation, brain drain to low poverty and indigence, environmental degradation, brain drain to low absorptive capacity in the SME-based manufacturing industry and urban- absorptive capacity in the SME-based manufacturing industry and urban- rural divide. No single higher education institutions, organisation or agency rural divide. No single higher education institutions, organisation or agency has the capacity to address them alone. Broad based collaboration between has the capacity to address them alone. Broad based collaboration between regional agencies, business and industry, higher education institutions and regional agencies, business and industry, higher education institutions and civil society is required. By working together, these regional stakeholders civil society is required. By working together, these regional stakeholders can generate a greater dynamism and change in the local economy and can generate a greater dynamism and change in the local economy and society. society. Civil leadership and collaboration have a long and strong tradition in the Civil leadership and collaboration have a long and strong tradition in the region. Two well established important stakeholder groups include CIDERE region. Two well established important stakeholder groups include CIDERE (Industrial Corporation for the Regional Development of the Bío Bío (Industrial Corporation for the Regional Development of the Bío Bío Region) and CORBIOBIO (Corporation for the Regionalisation of Bío Bío). Region) and CORBIOBIO (Corporation for the Regionalisation of Bío Bío). CIDERE was established in the 1960s by a group of business leaders who CIDERE was established in the 1960s by a group of business leaders who wanted to foster the development of the Bío Bío Region’s provinces and the wanted to foster the development of the Bío Bío Region’s provinces and the province of Malleco in La Araucanía Region. Today, it is focused on province of Malleco in La Araucanía Region. Today, it is focused on sponsoring and funding projects to foster innovation and entrepreneurship in sponsoring and funding projects to foster innovation and entrepreneurship in the region, many of which have linkages to the higher education sector. the region, many of which have linkages to the higher education sector. CORBIOBIO was established in 1984 by a group of businesspersons and CORBIOBIO was established in 1984 by a group of businesspersons and regional leaders aimed at fostering the process of decentralisation and regional leaders aimed at fostering the process of decentralisation and citizen participation in public governance. It has supported the cause of citizen participation in public governance. It has supported the cause of decentralisation for more than 25 years and continues to be an active opinion decentralisation for more than 25 years and continues to be an active opinion leader. Higher education institutions have close relations with both leader. Higher education institutions have close relations with both organisations through personal and institutional links. For example, in the organisations through personal and institutional links. For example, in the case of CIDERE, the key universities, University of Concepción, University case of CIDERE, the key universities, University of Concepción, University of Bío Bío and Universidad Católica de la Santísima Concepción, are of Bío Bío and Universidad Católica de la Santísima Concepción, are members in its board. Despite the existing links, the OECD/World Bank members in its board. Despite the existing links, the OECD/World Bank team heard evidence also that the linkages between the business and higher team heard evidence also that the linkages between the business and higher education institutions had to some degree withered as most businesses now education institutions had to some degree withered as most businesses now have headquarters in the Metropolitan region. have headquarters in the Metropolitan region. The Bío Bío Regional Agency for Innovation and Productive The Bío Bío Regional Agency for Innovation and Productive Development was established in 2007. It has been a national pioneer in Development was established in 2007. It has been a national pioneer in many ways. For example, it was the first agency in Chile to include the word many ways. For example, it was the first agency in Chile to include the word “innovation” in its name and to seek to integrate the promotion of innovative “innovation” in its name and to seek to integrate the promotion of innovative capacity within economic development. Despite its early focus on capacity within economic development. Despite its early focus on innovation, the regional development agency continues to have limited innovation, the regional development agency continues to have limited

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capacity with 7 technical staff including an executive director. An enlarged capacity with 7 technical staff including an executive director. An enlarged team of professionals with the capacity to make an in-depth analysis of the team of professionals with the capacity to make an in-depth analysis of the regional strengths and challenges would improve the situation. With the regional strengths and challenges would improve the situation. With the recent reform, the need for capacity building is now becoming more recent reform, the need for capacity building is now becoming more pressing. Table 5.1 displays the capacity of selected regional development pressing. Table 5.1 displays the capacity of selected regional development agencies according to the number staff and annual budget. agencies according to the number staff and annual budget.

Table 5.1. Funding for regional development agencies, selected examples Table 5.1. Funding for regional development agencies, selected examples

Regional development agency Employees Annual budget, EUR million Regional development agency Employees Annual budget, EUR million One Northeast (United Kingdom) 250 400.0 One Northeast (United Kingdom) 250 400.0 SPRI – Basque Country (Spain) 92 53.0 SPRI – Basque Country (Spain) 92 53.0 Barcelona Activa (Spain) 80 16.0 Barcelona Activa (Spain) 80 16.0 NOM (The Netherlands) 50 13.0 NOM (The Netherlands) 50 13.0 ASNM Nord Milano (Milan) 30 9.0 ASNM Nord Milano (Milan) 30 9.0 Agência Curitiba (Brazil) 28 2.0 Agência Curitiba (Brazil) 28 2.0 Midi-Pyrénées Expansion (France) 27 3.1 Midi-Pyrénées Expansion (France) 27 3.1 ARIDP Bío Bío (Chile) 7 11.8 ARIDP Bío Bío (Chile) 7 11.8 Source: OECD (2009), OECD Territorial Reviews: Chile 2009, OECD Publishing, Source: OECD (2009), OECD Territorial Reviews: Chile 2009, OECD Publishing, Paris; Agência Curitiba; ARIDP Bío Bío. Paris; Agência Curitiba; ARIDP Bío Bío.

The higher education institutions in the Bío Bío Region as well as The higher education institutions in the Bío Bío Region as well as students and staff engage in wide ranging collaboration including students and staff engage in wide ranging collaboration including knowledge transfer, collaborative efforts with business and industry, knowledge transfer, collaborative efforts with business and industry, community outreach and volunteering. While there is an abundance of community outreach and volunteering. While there is an abundance of initiatives and projects and evidence of excellence, the work is often project- initiatives and projects and evidence of excellence, the work is often project- based and/or driven by the action on the initiative of individuals or single based and/or driven by the action on the initiative of individuals or single departments. To a large extent, the action remains organic, unstructured and departments. To a large extent, the action remains organic, unstructured and undermanaged focusing on problem solving and usually with no long-term undermanaged focusing on problem solving and usually with no long-term strategy and sharing good practice among the key actors. There is often strategy and sharing good practice among the key actors. There is often limited evidence base and a lack of monitoring results which makes it limited evidence base and a lack of monitoring results which makes it difficult to evaluate the outcomes. difficult to evaluate the outcomes. The situation is, however, improving with the new PMC “Bío Bío The situation is, however, improving with the new PMC “Bío Bío Educates and Innovates” that is bringing higher education institutions Educates and Innovates” that is bringing higher education institutions together in a more consistent manner. Currently, the Bío Bío Educates and together in a more consistent manner. Currently, the Bío Bío Educates and Innovates involves representation from three universities in its steering Innovates involves representation from three universities in its steering committee, Universidad Católica de la Santísima Concepción whose rector committee, Universidad Católica de la Santísima Concepción whose rector is also the chair, University of Concepción and University of Bío Bío, while is also the chair, University of Concepción and University of Bío Bío, while INACAP is involved as an associated institution. Care should be taken to INACAP is involved as an associated institution. Care should be taken to ensure that all accredited higher education institutions have the opportunity ensure that all accredited higher education institutions have the opportunity to participate in the PMC. to participate in the PMC. The recent collaborative action within the PMC includes the self- The recent collaborative action within the PMC includes the self- evaluation process linked to the OECD/World Bank review. It brought evaluation process linked to the OECD/World Bank review. It brought

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together different stakeholders from the business sector, government and together different stakeholders from the business sector, government and higher education institutions in the regional steering committee of the higher education institutions in the regional steering committee of the Bío Bío Region. By focusing attention on higher education institutions’ Bío Bío Region. By focusing attention on higher education institutions’ contribution to regional development the review process has benefited the contribution to regional development the review process has benefited the region and higher education institutions in many ways, e.g. through i) shared region and higher education institutions in many ways, e.g. through i) shared diagnosis of strengths, challenges and goals in the region; ii) better diagnosis of strengths, challenges and goals in the region; ii) better understanding of the need for robust evidence and open sharing of understanding of the need for robust evidence and open sharing of knowledge and experience; and iii) identification of key individuals to drive knowledge and experience; and iii) identification of key individuals to drive the regional agenda. The general lack of robust data and the fact that the regional agenda. The general lack of robust data and the fact that information is weakly disintegrated at the regional level had an impact on information is weakly disintegrated at the regional level had an impact on the OECD self-evaluation process as a number of ad hoc surveys were the OECD self-evaluation process as a number of ad hoc surveys were necessary. necessary. Another example of a multi-institutional initiative under the PMC Another example of a multi-institutional initiative under the PMC “Bío Bío Educates and Innovates” is the collaboration to build a health “Bío Bío Educates and Innovates” is the collaboration to build a health cluster in the region. In August 2009, a memorandum of understanding was cluster in the region. In August 2009, a memorandum of understanding was signed in clinical medicine between three universities in Concepción: signed in clinical medicine between three universities in Concepción: University of Concepción, Universidad Católica de la Santísima Concepción University of Concepción, Universidad Católica de la Santísima Concepción and San Sebastián University with the aim to improve the quality of health- and San Sebastián University with the aim to improve the quality of health- related academic programmes and to collaborate with the regional related academic programmes and to collaborate with the regional government in developing a health cluster in the Bío Bío Region. The government in developing a health cluster in the Bío Bío Region. The collaboration seeks to develop teaching and research in the fields of medical collaboration seeks to develop teaching and research in the fields of medical imaging, emergency and intensive care. In addition, the aim is to build a imaging, emergency and intensive care. In addition, the aim is to build a medical simulation centre to provide healthcare training with the use of medical simulation centre to provide healthcare training with the use of human patient simulators and manikins (UDEC, 2009). human patient simulators and manikins (UDEC, 2009). At the time of the review visit this collaboration was still at early stages At the time of the review visit this collaboration was still at early stages and there was no clear business plan, division of labour and co-ordination and there was no clear business plan, division of labour and co-ordination mechanisms as well as targets and milestones. Despite these shortcomings mechanisms as well as targets and milestones. Despite these shortcomings the initiative represents a pioneering effort not only in the region but also the initiative represents a pioneering effort not only in the region but also nationally. It holds much promise for the regional development and the nationally. It holds much promise for the regional development and the region’s low income population provided so that the focus will be on region’s low income population provided so that the focus will be on preventive medicine and that the region is perceived as a laboratory and a preventive medicine and that the region is perceived as a laboratory and a test bed for collaborative action and outreach using leading edge modern test bed for collaborative action and outreach using leading edge modern telemedicine technologies to reach out to rural and remote areas. Since the telemedicine technologies to reach out to rural and remote areas. Since the ambitious goal is also to build a health pole in the region supported by ambitious goal is also to build a health pole in the region supported by public investment, it would be useful to consider how to engage other higher public investment, it would be useful to consider how to engage other higher education institutions delivering health related education and services. For education institutions delivering health related education and services. For example, the University of Bío Bío and the Universidad del Desarrollo, example, the University of Bío Bío and the Universidad del Desarrollo, whose School of Medicine has gained national recognition: its first whose School of Medicine has gained national recognition: its first graduating class of physicians earned the second place in the National graduating class of physicians earned the second place in the National Medical Examination in 2009. Medical Examination in 2009. Promising progress is also made in local development. For example, the Promising progress is also made in local development. For example, the Municipality of Concepción has formed the Urban Development Task Force Municipality of Concepción has formed the Urban Development Task Force

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with the participation of the University of Bío Bío, University of with the participation of the University of Bío Bío, University of Concepción and Universidad Católica de la Santísima Concepción. Concepción and Universidad Católica de la Santísima Concepción. A regional competitiveness framework is often viewed as the key to A regional competitiveness framework is often viewed as the key to regional development. The regional competitiveness approach argues that regional development. The regional competitiveness approach argues that regional capacity can be nurtured and developed by identifying their regional capacity can be nurtured and developed by identifying their competitive advantage. Furthermore, they must align public investments competitive advantage. Furthermore, they must align public investments with economic niches (Porter, 1998; 1999). Table 5.2 shows the progress with economic niches (Porter, 1998; 1999). Table 5.2 shows the progress made in the Bío Bío Region in terms of the four essential elements for made in the Bío Bío Region in terms of the four essential elements for competitiveness in the global economy: strategy, governance, innovation competitiveness in the global economy: strategy, governance, innovation and entrepreneurship. While it shows good progress in a number of points, it and entrepreneurship. While it shows good progress in a number of points, it also identifies gaps that need to be bridged. also identifies gaps that need to be bridged.

Table 5.2. Bío Bío Region’s competitiveness framework and HEIs’ role Table 5.2. Bío Bío Region’s competitiveness framework and HEIs’ role

Essential ingredient Target (Ideal) The Bío Bío Region (Actual) Essential ingredient Target (Ideal) The Bío Bío Region (Actual) Strategy To identify the region’s distinct competitive Strong progress made in achieving a shared Strategy To identify the region’s distinct competitive Strong progress made in achieving a shared advantage. vision and engagement among key advantage. vision and engagement among key stakeholders. stakeholders. To align public and private actions necessary To align public and private actions necessary to seize it. Lack of alignment between public, private to seize it. Lack of alignment between public, private and non-profit investments. and non-profit investments. Short and mid-term goals. Short and mid-term goals. Limitations in evidence-based decision Limitations in evidence-based decision making to identify competitive advantage. making to identify competitive advantage. Governance To supply a framework to unite public, private Progress made in bringing together HEIs, Governance To supply a framework to unite public, private Progress made in bringing together HEIs, and non-profit leaders as a collective guide business and government. and non-profit leaders as a collective guide business and government. and owner of the strategy. and owner of the strategy. Some gaps in representation by key HEIs. Some gaps in representation by key HEIs. Innovation To link the region with new technologies and Universities’ science & technology activities Innovation To link the region with new technologies and Universities’ science & technology activities new ways of working and living that can focused on knowledge production rather new ways of working and living that can focused on knowledge production rather transform the region’s social and economic than knowledge transfer. transform the region’s social and economic than knowledge transfer. assets. assets. Innovation activities with limited alignment to Innovation activities with limited alignment to the region’s economic assets. the region’s economic assets. Entrepreneurship To provide a fertile climate in which new Fragmented efforts to support SME sector. Entrepreneurship To provide a fertile climate in which new Fragmented efforts to support SME sector. ideas can be transferred successfully into the ideas can be transferred successfully into the marketplace. Higher education entrepreneurship activities marketplace. Higher education entrepreneurship activities at early stages. at early stages. Lack of robust data on “business dynamics” Lack of robust data on “business dynamics” (new firm creation vs. firm closure). (new firm creation vs. firm closure). Source: Adapted from Drabenstott, M. (2008), “Universities, Innovation and Regional Development: A Source: Adapted from Drabenstott, M. (2008), “Universities, Innovation and Regional Development: A View from the United States”, Higher Education Management and Policy, Vol. 20, No. 2, OECD View from the United States”, Higher Education Management and Policy, Vol. 20, No. 2, OECD Publishing, pp. 43-55 Publishing, pp. 43-55

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5.4 Institutional capacity in higher education institutions 5.4 Institutional capacity in higher education institutions

In Chile, the incentives structures for mobilising higher education In Chile, the incentives structures for mobilising higher education institutions for regional and city development are limited. There is no institutions for regional and city development are limited. There is no explicit third task or regional development task assigned to higher education explicit third task or regional development task assigned to higher education institutions and regional engagement is left to the initiative of the individual institutions and regional engagement is left to the initiative of the individual institutions. However, some aspects of national policies and programmes institutions. However, some aspects of national policies and programmes support regional orientation. For example, the national accreditation system support regional orientation. For example, the national accreditation system involves a strand for outreach (vinculación con el medio) that assesses the involves a strand for outreach (vinculación con el medio) that assesses the institutional policies and mechanisms that link the higher education institutional policies and mechanisms that link the higher education institutions with the local businesses and community and also aim at institutions with the local businesses and community and also aim at enhancing the academic and professional development of the staff and enhancing the academic and professional development of the staff and fulfilling institutional goals. In addition, some competitive national fulfilling institutional goals. In addition, some competitive national programmes include requirements, which in practice guarantee that part of programmes include requirements, which in practice guarantee that part of the funding will benefit higher education institutions outside the the funding will benefit higher education institutions outside the Metropolitan region and indirectly also their regional economies. Metropolitan region and indirectly also their regional economies. Higher education institution’s culture, capacity for change, leadership Higher education institution’s culture, capacity for change, leadership and the appropriate co-ordination mechanisms and oversight regionally play and the appropriate co-ordination mechanisms and oversight regionally play an important role in their capacity to engage with partnership building and an important role in their capacity to engage with partnership building and collaborative action. The OECD/World Bank review of tertiary education in collaborative action. The OECD/World Bank review of tertiary education in Chile (OECD 2009) identified several challenges including inflexible Chile (OECD 2009) identified several challenges including inflexible curricula and outdated classroom practices, overly long degree programmes, curricula and outdated classroom practices, overly long degree programmes, backward-looking institutional financing practices, a research system backward-looking institutional financing practices, a research system lacking focus and funding and persistent deficiencies in information and lacking focus and funding and persistent deficiencies in information and accountability for results. With respect to institutional management, it was accountability for results. With respect to institutional management, it was concluded that Chile’s public universities give a major role in institutional concluded that Chile’s public universities give a major role in institutional decision-making to academic staff, but very little influence to external decision-making to academic staff, but very little influence to external partners. The review recommended reforms that would permit public partners. The review recommended reforms that would permit public universities to recruit rectors from outside the university, encourage them to universities to recruit rectors from outside the university, encourage them to adopt modern management practices and free them from cumbersome civil adopt modern management practices and free them from cumbersome civil service controls and regulations. service controls and regulations. The Government of Chile has taken steps to address these shortcomings The Government of Chile has taken steps to address these shortcomings through providing public incentives to transform higher education. One of through providing public incentives to transform higher education. One of the most effective measures is MECESUP, Programme for the Quality and the most effective measures is MECESUP, Programme for the Quality and Equity Improvement of Higher Education launched by the Chilean Ministry Equity Improvement of Higher Education launched by the Chilean Ministry of Education in collaboration with the World Bank. The programme of Education in collaboration with the World Bank. The programme supports modernisation of the Chilean higher education through competitive supports modernisation of the Chilean higher education through competitive funds. funds. MECESUP (1999-2005) was established in 1998 with a funding of MECESUP (1999-2005) was established in 1998 with a funding of USD 245 million for 5 years. It supported 400 projects with an average grant USD 245 million for 5 years. It supported 400 projects with an average grant of USD 550 000 in the areas of academic staff development and training, of USD 550 000 in the areas of academic staff development and training, library modernisation and student learning spaces, information access and library modernisation and student learning spaces, information access and

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management, integration of information and communication technologies management, integration of information and communication technologies (ICTs) into teaching-learning, new laboratory equipment and technologies, (ICTs) into teaching-learning, new laboratory equipment and technologies, modern lecture rooms and use of multimedia, new spaces, new science modern lecture rooms and use of multimedia, new spaces, new science instrumentation and PhD scholarships. Regional universities (those outside instrumentation and PhD scholarships. Regional universities (those outside the metropolitan area of Santiago) account for the 70% of the total allocation the metropolitan area of Santiago) account for the 70% of the total allocation for undergraduate support. From the total budget, 20% was invested in the for undergraduate support. From the total budget, 20% was invested in the improvement and development of new doctoral programs and 10% was improvement and development of new doctoral programs and 10% was allocated to CFTs to improve teaching and learning in technological areas. allocated to CFTs to improve teaching and learning in technological areas. The second phase of the MECESUP Programme (MECESUP2 in The second phase of the MECESUP Programme (MECESUP2 in 2009-11) was designed to address more complex institutional issues, 2009-11) was designed to address more complex institutional issues, identified also in the OECD/World Bank review of tertiary education in identified also in the OECD/World Bank review of tertiary education in Chile (2009), including strategic planning, managerial practices in higher Chile (2009), including strategic planning, managerial practices in higher education institutions, accountability and the impact of learning and education institutions, accountability and the impact of learning and employability. It aims at improving the efficiency in funding higher employability. It aims at improving the efficiency in funding higher education, alongside with improving coherence, responsiveness, equity and education, alongside with improving coherence, responsiveness, equity and quality through performance-based accountability. Total budget of the first quality through performance-based accountability. Total budget of the first phase of the MECESUP2 is USD 91.2 million, supported with a loan of the phase of the MECESUP2 is USD 91.2 million, supported with a loan of the World Bank of USD 25.1 million (MINEDUC, 2009). World Bank of USD 25.1 million (MINEDUC, 2009). The MECESUP2 Programme has two components: the Academic The MECESUP2 Programme has two components: the Academic Innovation Fund (FIAC) and the Performance Agreements (CD) which were Innovation Fund (FIAC) and the Performance Agreements (CD) which were piloted in 2008. FIAC is available to CRUCH universities, national doctoral piloted in 2008. FIAC is available to CRUCH universities, national doctoral programmes, accredited private universities in the field of pedagogy and programmes, accredited private universities in the field of pedagogy and CFTs which have more than 100 students and are accredited or in the CFTs which have more than 100 students and are accredited or in the process of accreditation. Performance Agreements are available to state process of accreditation. Performance Agreements are available to state universities only. universities only. Four state universities in Chile, including the University of Bío Bío, Four state universities in Chile, including the University of Bío Bío, have received funding for the Performance Agreements. Participation has have received funding for the Performance Agreements. Participation has brought measurable improvements in the university’s key activities and brought measurable improvements in the university’s key activities and improved transparency and public accountability (see Box 5.2). improved transparency and public accountability (see Box 5.2). The MECESUP Programme is a good example of a national top-down The MECESUP Programme is a good example of a national top-down initiative involving the central government’s thrust to improve the quality of initiative involving the central government’s thrust to improve the quality of higher education. The 18% cap of funding for a single institution has higher education. The 18% cap of funding for a single institution has guaranteed that 70% of the funds have been directed to higher education guaranteed that 70% of the funds have been directed to higher education institutions outside of Santiago and that higher education institutions outside institutions outside of Santiago and that higher education institutions outside the national capital also benefit from the programme. It has promoted the national capital also benefit from the programme. It has promoted curriculum reform and individual institutions have shortened the path to curriculum reform and individual institutions have shortened the path to advanced degrees in some cases. The recent efforts to involve also advanced degrees in some cases. The recent efforts to involve also institutions outside of the traditional CRUCH universities in some institutions outside of the traditional CRUCH universities in some MECESUP activities are commendable. Of particular interest are the MECESUP activities are commendable. Of particular interest are the performance agreements which require institutional improvement plans and performance agreements which require institutional improvement plans and enhance accountability and transparency. Ensuring that the critical reform enhance accountability and transparency. Ensuring that the critical reform

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initiatives are scaled up throughout the system is part of the challenge facing initiatives are scaled up throughout the system is part of the challenge facing the Government of Chile. To improve management capacity, transparency the Government of Chile. To improve management capacity, transparency and accountability across higher education sector, it is recommended that and accountability across higher education sector, it is recommended that performance based agreements are made available to all accredited higher performance based agreements are made available to all accredited higher education institutions. education institutions.

Box 5.2. MECESUP2 performance agreement with UBB Box 5.2. MECESUP2 performance agreement with UBB In April 2008, the University of Bío Bío (UBB) launched a set of initiatives to In April 2008, the University of Bío Bío (UBB) launched a set of initiatives to support “Social integration and academic success of UBB students” under the support “Social integration and academic success of UBB students” under the Performance Agreements with the Ministry of Education. To support the Performance Agreements with the Ministry of Education. To support the activities, the university received a financial incentive of USD 6 million for activities, the university received a financial incentive of USD 6 million for 3 years with an option for a more longer term collaboration. 70% of funds come 3 years with an option for a more longer term collaboration. 70% of funds come from the Ministry of Education through the MECESUP2 programme, and the rest from the Ministry of Education through the MECESUP2 programme, and the rest from the university. from the university. The university’s performance agreement has a special emphasis on students The university’s performance agreement has a special emphasis on students from lower socio-economic backgrounds and identifies four key objectives with from lower socio-economic backgrounds and identifies four key objectives with measurable targets for each year: i) reduction of student dropout rates; measurable targets for each year: i) reduction of student dropout rates; ii) significant reduction of the length of the study; iii) improvement in graduate ii) significant reduction of the length of the study; iii) improvement in graduate employability; and iv) improvement of the quality of undergraduate academic employability; and iv) improvement of the quality of undergraduate academic programmes by increasing the number of accredited programmes. The university programmes by increasing the number of accredited programmes. The university is required to report annually in detail about the progress in terms of the four is required to report annually in detail about the progress in terms of the four areas. The results are published on the public domain which increases areas. The results are published on the public domain which increases transparency and public accountability. transparency and public accountability. By 2011 the goal is to reduce the length of study from 6.56 to 6.25 years in the By 2011 the goal is to reduce the length of study from 6.56 to 6.25 years in the 4-year programmes, 7.11 to 6.75 years in the 5-year programmes and 8.5 to 4-year programmes, 7.11 to 6.75 years in the 5-year programmes and 8.5 to 8.25 years in the 6-year programmes. In addition, the university aims to increase 8.25 years in the 6-year programmes. In addition, the university aims to increase the number of accredited programmes by almost 30%. the number of accredited programmes by almost 30%. The performance agreement has resulted in significant improvement in The performance agreement has resulted in significant improvement in retention: between April 2008 and August 2009 the dropout rate reduced from retention: between April 2008 and August 2009 the dropout rate reduced from 17% to 5.8%, exceeding considerably the original target of 14.5%. The university 17% to 5.8%, exceeding considerably the original target of 14.5%. The university has also made progress in improving the information and monitoring tools on has also made progress in improving the information and monitoring tools on levels of student employability and this data is used to set the future goals. levels of student employability and this data is used to set the future goals. According to the assessment of the MECESUP2’s international committee, the According to the assessment of the MECESUP2’s international committee, the UBB performance agreement has improved the university management capacity UBB performance agreement has improved the university management capacity by creating a central, strategic activity that commits UBB’s leadership team and by creating a central, strategic activity that commits UBB’s leadership team and faculty members. The report states that the agreement has fostered a new faculty members. The report states that the agreement has fostered a new innovation dynamic which would otherwise be not present in the university. innovation dynamic which would otherwise be not present in the university.

Source: UBB (University of Bío Bío) (2009) MECESUP project website, Source: UBB (University of Bío Bío) (2009) MECESUP project website, http://meceubb.ubiobio.cl; UBB (2009) Performance Agreement website, http://meceubb.ubiobio.cl; UBB (2009) Performance Agreement website, http://convenio.ubiobio.cl/not.php?Opcion=Detalle&ID=120, accessed 16 December http://convenio.ubiobio.cl/not.php?Opcion=Detalle&ID=120, accessed 16 December 2009; MINEDUC (Ministry of Education) (2009), MECESUP website, 2009; MINEDUC (Ministry of Education) (2009), MECESUP website, www.mece2.com, accessed 16 December 2009. www.mece2.com, accessed 16 December 2009.

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Leadership skills among the rectors and vice-rectors and their support Leadership skills among the rectors and vice-rectors and their support teams play an important role in making higher education sector more teams play an important role in making higher education sector more engaged and entrepreneurial. Their willingness to embrace change, ability to engaged and entrepreneurial. Their willingness to embrace change, ability to create consensus and agreement on course of action, short- and medium- create consensus and agreement on course of action, short- and medium- term strategies and ability to raise external funding for infrastructure, term strategies and ability to raise external funding for infrastructure, operations and services that can collectively help to build a progressive operations and services that can collectively help to build a progressive culture within the higher education institutions. Some of the leading private culture within the higher education institutions. Some of the leading private institutions in the Bío Bío Region are introducing professional management institutions in the Bío Bío Region are introducing professional management and quality education without government support. and quality education without government support.

Box 5.3. Entrepreneurial private university: Universidad del Box 5.3. Entrepreneurial private university: Universidad del Desarrollo Desarrollo

Universidad del Desarrollo (UDD) is a growing private university with a Universidad del Desarrollo (UDD) is a growing private university with a learner centred orientation. Its 10 000 students – 6 000 in Santiago and 4 000 in learner centred orientation. Its 10 000 students – 6 000 in Santiago and 4 000 in Concepción – study undergraduate and graduate programmes and professional Concepción – study undergraduate and graduate programmes and professional development programmes in education, business and economics, medicine and development programmes in education, business and economics, medicine and dentistry, law and government, engineering, art, design and architecture. UDD dentistry, law and government, engineering, art, design and architecture. UDD has clear goals, professional management and close ties to enterprises and has clear goals, professional management and close ties to enterprises and evidence of excellence.3 evidence of excellence.3 Some of the degree programmes in the university, e.g. dentistry, require large Some of the degree programmes in the university, e.g. dentistry, require large amounts of both human capital and specialised physical capital. It would be easy amounts of both human capital and specialised physical capital. It would be easy to assume that such a field would require government support or need necessarily to assume that such a field would require government support or need necessarily to be a public institution. Yet, the university has built successful education to be a public institution. Yet, the university has built successful education business models that are both commercially viable and of high quality. Apart business models that are both commercially viable and of high quality. Apart from initial loans to the university itself, and the access of its students to national from initial loans to the university itself, and the access of its students to national student loan programmes, the university does not require subsidies to function. student loan programmes, the university does not require subsidies to function. Assuming that the loans are public, they provide an example of the need to match Assuming that the loans are public, they provide an example of the need to match the instruments to the specific needs and what combination of publicly-provided the instruments to the specific needs and what combination of publicly-provided instruments the government should offer. instruments the government should offer.

Regional engagement is not only the task for the top leaders and Regional engagement is not only the task for the top leaders and management of higher education institutions. Institutions wishing to management of higher education institutions. Institutions wishing to mobilise their staff in support of this agenda need to ensure that regional mobilise their staff in support of this agenda need to ensure that regional agenda is taken into consideration in the recruitment, hiring and reward agenda is taken into consideration in the recruitment, hiring and reward systems as well as human resources development. Tangible rewards and systems as well as human resources development. Tangible rewards and incentives make it possible to change behaviour and ultimately attitudes and incentives make it possible to change behaviour and ultimately attitudes and values. Employment and human resources management practices need to values. Employment and human resources management practices need to allow greater segregation of roles among higher education staff, with allow greater segregation of roles among higher education staff, with different kinds of workloads and reward systems. different kinds of workloads and reward systems. In addition, regional engagement needs to be taken into consideration in In addition, regional engagement needs to be taken into consideration in the institutional planning, development and resource allocation. the institutional planning, development and resource allocation. International experiences have shown that modern management tools and International experiences have shown that modern management tools and

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approaches, such as Balanced Scorecard, can be useful in reorienting the approaches, such as Balanced Scorecard, can be useful in reorienting the institutional approaches (see Box 5.4). institutional approaches (see Box 5.4).

Box 5.4. HE management at the Jyväskylä University of Applied Box 5.4. HE management at the Jyväskylä University of Applied Sciences Sciences

Jyväskylä University of Applied Sciences (formerly Jyväskylä Polytechnic) in Jyväskylä University of Applied Sciences (formerly Jyväskylä Polytechnic) in central Finland has a set of engagement activities which help the institution to central Finland has a set of engagement activities which help the institution to respond to local needs as well as to integrate local stakeholders into the institution respond to local needs as well as to integrate local stakeholders into the institution to help with the delivery of education. One of the institution’s past challenges to help with the delivery of education. One of the institution’s past challenges involved the integration of seven constituent vocational colleges into one higher involved the integration of seven constituent vocational colleges into one higher education institution which meets the needs of the regional businesses and education institution which meets the needs of the regional businesses and working life in general. This merger process has strengthened the institution’s working life in general. This merger process has strengthened the institution’s capacity to develop new cross- and multi-disciplinary courses and educational capacity to develop new cross- and multi-disciplinary courses and educational trajectories in existing and emerging disciplinary areas to meet the needs of firms. trajectories in existing and emerging disciplinary areas to meet the needs of firms. Jyväskylä University of Applied Sciences is particularly well equipped to Jyväskylä University of Applied Sciences is particularly well equipped to work with the SMEs which form the backbone of the regional economy in central work with the SMEs which form the backbone of the regional economy in central Finland. It has defined nine multi-disciplinary Centres of Expertise which Finland. It has defined nine multi-disciplinary Centres of Expertise which respond to regional needs. Each school has an external board as well as a respond to regional needs. Each school has an external board as well as a regional/business development office. Most significantly, it also maintains a regional/business development office. Most significantly, it also maintains a sophisticated management information system which tracks the performance of sophisticated management information system which tracks the performance of each individual school. Of 29 Balanced Scorecard indicators, eight are each individual school. Of 29 Balanced Scorecard indicators, eight are specifically linked to regional engagement. The school-based indicators are specifically linked to regional engagement. The school-based indicators are regularly monitored by the central management team. Strategic planning is regularly monitored by the central management team. Strategic planning is implemented as part of the elaboration and annual revision of the three-year implemented as part of the elaboration and annual revision of the three-year Agreement on Objectives set with the Ministry of Education. The planning Agreement on Objectives set with the Ministry of Education. The planning process translates these objectives into school-, team- and personal-level goals process translates these objectives into school-, team- and personal-level goals and actions. Strategies are brought into practice through the Balanced Scorecard. and actions. Strategies are brought into practice through the Balanced Scorecard.

If higher education institutions wish to mainstream the regional agenda, If higher education institutions wish to mainstream the regional agenda, they will require a number of staff with knowledge of regional development they will require a number of staff with knowledge of regional development environment: i) structure of the organisations involved in regional environment: i) structure of the organisations involved in regional development; ii) central, regional and local government powers and development; ii) central, regional and local government powers and responsibilities; iii) different time scales and drivers influencing these responsibilities; iii) different time scales and drivers influencing these organisations; and iv) overlaps between organisations and how these can be organisations; and iv) overlaps between organisations and how these can be used to mutual advantage. A tailored human resources development used to mutual advantage. A tailored human resources development programme would be helpful for the facilitators. programme would be helpful for the facilitators. Influencing and managing the external environment of the higher Influencing and managing the external environment of the higher education institution includes creating and sustaining strategic regional education institution includes creating and sustaining strategic regional partnerships and assuming real and shared responsibility for the prosperity partnerships and assuming real and shared responsibility for the prosperity

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and development of the region. For managing its regional interface, the and development of the region. For managing its regional interface, the higher education institution may need to establish a dedicated office. This higher education institution may need to establish a dedicated office. This has happened, for example, in the University of Newcastle upon Tyne (UK). has happened, for example, in the University of Newcastle upon Tyne (UK). For the experience in the Purdue University (Indiana, US) see Box 5.5. For the experience in the Purdue University (Indiana, US) see Box 5.5. Dedicated offices are helpful when scaling up the institutional capacity from Dedicated offices are helpful when scaling up the institutional capacity from individual good practice cases to a well developed system. A systematic individual good practice cases to a well developed system. A systematic approach will require focus on the following tasks: co-ordination and approach will require focus on the following tasks: co-ordination and management of regional links; provision of input to strategic planning; management of regional links; provision of input to strategic planning; contribution to the marketing of the higher education institution; contribution to the marketing of the higher education institution; development of frameworks for engagement and regional understanding development of frameworks for engagement and regional understanding within the institution; and maintaining pressure for mainstreaming of within the institution; and maintaining pressure for mainstreaming of regional engagement through the normal channels of the institution (OECD, regional engagement through the normal channels of the institution (OECD, 2007). 2007).

Box 5.5. Purdue University: supporting Indiana’s development Box 5.5. Purdue University: supporting Indiana’s development

The Purdue University is a land grant university which has played a central The Purdue University is a land grant university which has played a central role in agricultural and industrial extension in Indiana. In recent years, the role in agricultural and industrial extension in Indiana. In recent years, the university has focused on generating technology start-ups and new licences to university has focused on generating technology start-ups and new licences to advance technology firms. The university has an Office of Technology advance technology firms. The university has an Office of Technology Commercialisation and a research park with more than 100 companies and Commercialisation and a research park with more than 100 companies and 2 500 employees. Purdue Research Park, which is one of the most successful in 2 500 employees. Purdue Research Park, which is one of the most successful in the United States, is located in a remote area where the university is the primary the United States, is located in a remote area where the university is the primary economic activity. The university has also developed a Virtual Discovery Park economic activity. The university has also developed a Virtual Discovery Park that is home to interdisciplinary research centres. These structures identify that is home to interdisciplinary research centres. These structures identify technologies with potential for commercialisation in the state. Purdue also runs a technologies with potential for commercialisation in the state. Purdue also runs a Technical Assistance Programme which provides technology extension services Technical Assistance Programme which provides technology extension services to Indiana companies and Gateways Program for entrepreneurs in incubation to Indiana companies and Gateways Program for entrepreneurs in incubation phase. The office of Engagement and the Centre for Regional Development phase. The office of Engagement and the Centre for Regional Development complement the university’s regional strategy. complement the university’s regional strategy.

Conclusions and recommendations Conclusions and recommendations

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and CORECYT have contributed to regional growth within the regional and CORECYT have contributed to regional growth within the regional development strategy and the regional agenda of ARIDP (leeway alongside development strategy and the regional agenda of ARIDP (leeway alongside with national priorities) interpreted territorial strategies with participation of with national priorities) interpreted territorial strategies with participation of higher education institutions. There is evidence of innovative programmes higher education institutions. There is evidence of innovative programmes and projects, strong civic leadership and increasing collaboration of higher and projects, strong civic leadership and increasing collaboration of higher education institutions in the regional development. education institutions in the regional development. However, limited resources are spread thinly and there is a lack of However, limited resources are spread thinly and there is a lack of critical mass to develop projects which will have real impact at the local and critical mass to develop projects which will have real impact at the local and regional level and also generate multiplier effects. Collaborative regional level and also generate multiplier effects. Collaborative mechanisms among higher education institutions to build capacity and foster mechanisms among higher education institutions to build capacity and foster joint efforts for regional development remain limited in scope and joint efforts for regional development remain limited in scope and representation. There is a lack of information and robust data particularly in representation. There is a lack of information and robust data particularly in the field of skills gaps, business formation and productivity which the field of skills gaps, business formation and productivity which undermine opportunities for evidence based decision making and make it undermine opportunities for evidence based decision making and make it difficult to evaluate the outcomes of local policies. The ability to design difficult to evaluate the outcomes of local policies. The ability to design concise and targeted strategies is not yet well developed which limit the concise and targeted strategies is not yet well developed which limit the scope for the development of strategies to reflect unique and pressing issues scope for the development of strategies to reflect unique and pressing issues affecting the region and provide a coherent plan how to address these. affecting the region and provide a coherent plan how to address these. The decentralisation process has also opened a window of opportunity The decentralisation process has also opened a window of opportunity for more collaborative action in the Bío Bío Region. Universities and other for more collaborative action in the Bío Bío Region. Universities and other higher education institutions are becoming more outward looking and are higher education institutions are becoming more outward looking and are increasing collaboration. To continue to deepen the collaboration between increasing collaboration. To continue to deepen the collaboration between higher education institutions and their regional stakeholders the higher education institutions and their regional stakeholders the OECD/World Bank Team recommends that: OECD/World Bank Team recommends that: • Chile should continue and deepen the decentralisation process and • Chile should continue and deepen the decentralisation process and enhance capacity building in regions. Experience in OECD enhance capacity building in regions. Experience in OECD countries shows that increased decision-making power at sub- countries shows that increased decision-making power at sub- national levels of government combined with co-ordination national levels of government combined with co-ordination mechanisms can unleash the potential in the regions. As regional mechanisms can unleash the potential in the regions. As regional capacities are built through “learning by doing”, increased capacities are built through “learning by doing”, increased responsibilities at the regional level are necessary to build skills and responsibilities at the regional level are necessary to build skills and develop problem solving approach. develop problem solving approach. • Regional and local engagement and more specifically its wide • Regional and local engagement and more specifically its wide agenda for economic, social and cultural development should be agenda for economic, social and cultural development should be made explicit in higher education legislation. Regional engagement made explicit in higher education legislation. Regional engagement should be encouraged through strengthening the National should be encouraged through strengthening the National Commission of Accreditation Process. In addition, performance Commission of Accreditation Process. In addition, performance agreements should be made available to all accredited higher agreements should be made available to all accredited higher education institutions. education institutions. • Incentives for higher education institutions should be created to • Incentives for higher education institutions should be created to engage in local and regional development through long term core engage in local and regional development through long term core

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funding and additional strategic incentive-based funding schemes. funding and additional strategic incentive-based funding schemes. In addition, local and regional engagement of higher education staff In addition, local and regional engagement of higher education staff should be acknowledged and rewarded by higher education should be acknowledged and rewarded by higher education institutions in their recruitment, hiring and reward systems. institutions in their recruitment, hiring and reward systems. • Evidence-based decision making should be strengthened in the • Evidence-based decision making should be strengthened in the region by focusing on a dashboard of key indicators that the key region by focusing on a dashboard of key indicators that the key regional stakeholders can monitor over time. This can result in a regional stakeholders can monitor over time. This can result in a shared local knowledge base which will galvanise the development shared local knowledge base which will galvanise the development of a strong local strategy for change. of a strong local strategy for change. • The capacity for regional engagement should be improved in the • The capacity for regional engagement should be improved in the region among key agencies and higher education institutions region among key agencies and higher education institutions through forums for communication where good practices can be through forums for communication where good practices can be fostered and through targeted training programmes with focus on fostered and through targeted training programmes with focus on practical problem solving. practical problem solving. • The joint resources of the higher education institutions should be • The joint resources of the higher education institutions should be mobilised for the preparation and implementation of regional mobilised for the preparation and implementation of regional strategies. strategies. • A regional strategy platform should be developed to complement the • A regional strategy platform should be developed to complement the current project-based approaches with a more system-based current project-based approaches with a more system-based approach. approach. • Higher education institutions should establish modern • Higher education institutions should establish modern administration with human resources and financial resources administration with human resources and financial resources management systems. In addition, they should review recruitment, management systems. In addition, they should review recruitment, hiring and reward systems to include regional development agenda. hiring and reward systems to include regional development agenda.

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Notes Notes

1. PMC: “Programa de mejoramiento de competitividad” 1. PMC: “Programa de mejoramiento de competitividad” 2. The Regional Agency for Innovation and Productive Development 2. The Regional Agency for Innovation and Productive Development (ARIDP, Agencia Regional de Innovación y Desarollo Productivo” is the (ARIDP, Agencia Regional de Innovación y Desarollo Productivo” is the first agency in Chile including the term “innovation” in its name. first agency in Chile including the term “innovation” in its name. 3. In 2007, the National Accreditation Commission granted the university 3. In 2007, the National Accreditation Commission granted the university institutional accreditation for 5 years with a rating of 7, the higher mark institutional accreditation for 5 years with a rating of 7, the higher mark that the commission has ever awarded to a private university. In 2009, the that the commission has ever awarded to a private university. In 2009, the university MBA programme was ranked number 1 in Latin America in university MBA programme was ranked number 1 in Latin America in terms of the quality of its faculty and leading institution in terms of the quality of its faculty and leading institution in entrepreneurship (ranking published in América Economía). The entrepreneurship (ranking published in América Economía). The university’s first graduating class of physicians of the Clínica Alemana- university’s first graduating class of physicians of the Clínica Alemana- Universidad del Desarrollo School of Medicine earned the second place in Universidad del Desarrollo School of Medicine earned the second place in the National Medical Examination after 7 years of its establishment. the National Medical Examination after 7 years of its establishment. Chilean business leaders have ranked the university as number 5 in Chilean business leaders have ranked the university as number 5 in preparing graduates for real world experience (La Segunda and Adimark). preparing graduates for real world experience (La Segunda and Adimark).

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References References

Drabenstott, M. (2008), “Universities, Innovation and Regional Drabenstott, M. (2008), “Universities, Innovation and Regional Development: A View from the United States”, Higher Education Development: A View from the United States”, Higher Education Management and Policy, Vol. 20, No. 2, OECD Publishing, Paris, Management and Policy, Vol. 20, No. 2, OECD Publishing, Paris, pp. 43-55. pp. 43-55. MINEDUC (Ministry of Education, Government of Chile) (2009), MINEDUC (Ministry of Education, Government of Chile) (2009), MECESUP Programme website, www.mece2.com, accessed MECESUP Programme website, www.mece2.com, accessed 16 December 2009. 16 December 2009. OECD (2007), Higher Education and Regions: Globally Competitive, OECD (2007), Higher Education and Regions: Globally Competitive, Locally Engaged, OECD Publishing, Paris, p. 183. Locally Engaged, OECD Publishing, Paris, p. 183. OECD (2009), OECD Territorial Reviews: Chile, Territorial Reviews, OECD (2009), OECD Territorial Reviews: Chile, Territorial Reviews, OECD Publishing, Paris. OECD Publishing, Paris. Porter, M.E. (1998), “Clusters and the New Economics of Competition”, Porter, M.E. (1998), “Clusters and the New Economics of Competition”, Harvard Business Review, Vol. 76, No. 6, Harvard Business Publishing, Harvard Business Review, Vol. 76, No. 6, Harvard Business Publishing, pp. 77 90. pp. 77 90. Porter, M.E. (1999), “New Strategies for Inner-City Economic Porter, M.E. (1999), “New Strategies for Inner-City Economic Development”, in J. Blair and A. Resse (eds.), Approaches to Economic Development”, in J. Blair and A. Resse (eds.), Approaches to Economic Development, Sage Publications, Thousand Oaks, pp. 32-47. Development, Sage Publications, Thousand Oaks, pp. 32-47. UBB (University of Bío Bío) (2009) MECESUP project website, UBB (University of Bío Bío) (2009) MECESUP project website, http://meceubb.ubiobio.cl, accessed 16 December 2009. http://meceubb.ubiobio.cl, accessed 16 December 2009. UBB Convenio de Desempeño (2009) (Performance Agreement) website, UBB Convenio de Desempeño (2009) (Performance Agreement) website, http://convenio.ubiobio.cl/not.php?Opcion=Detalle&ID=120, accessed http://convenio.ubiobio.cl/not.php?Opcion=Detalle&ID=120, accessed 16 December 2009 16 December 2009 UDEC (University of Concepción) (2009), “Firma de Convenio entre UDEC (University of Concepción) (2009), “Firma de Convenio entre UDEC, UCSC y USS”, http://www.medicinaudec.cl/cemudecaldia/132- UDEC, UCSC y USS”, http://www.medicinaudec.cl/cemudecaldia/132- firma-de-convenio-entre-udec-ucsc-y-uss, accessed 15 December 2009. firma-de-convenio-entre-udec-ucsc-y-uss, accessed 15 December 2009.

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OECD REVIEW TEAM – 147 OECD REVIEW TEAM – 147

Annex 1: OECD review team Annex 1: OECD review team

Jaana Puukka leads the OECD work on Higher Education and Jaana Puukka leads the OECD work on Higher Education and Regional and City Development. She joined the OECD Programme on Regional and City Development. She joined the OECD Programme on International Management in Higher Education (IMHE) in 2005 to co- International Management in Higher Education (IMHE) in 2005 to coordinate and manage the first round of OECD Reviews of Higher Education ordinate and manage the first round of OECD Reviews of Higher Education in Regional Development which took place in 2005-07 and embraced in Regional Development which took place in 2005-07 and embraced 14 regions in 12 countries. She is leading the second round of reviews in 14 regions in 12 countries. She is leading the second round of reviews in 2008-10 which is reaching out to 14 regions and city-regions in G8 countries 2008-10 which is reaching out to 14 regions and city-regions in G8 countries and emerging economies. She is the co-author and editor of the OECD and emerging economies. She is the co-author and editor of the OECD publication “Higher Education and Regions – Globally Competitive, Locally publication “Higher Education and Regions – Globally Competitive, Locally Engaged” (OECD, 2007). Before joining the OECD, Puukka had experience Engaged” (OECD, 2007). Before joining the OECD, Puukka had experience in higher education and regional development in Finland as a national and in higher education and regional development in Finland as a national and local government adviser, programme manager, practitioner and evaluator. local government adviser, programme manager, practitioner and evaluator. She has management experience from both the university and polytechnic She has management experience from both the university and polytechnic sector and has worked in university internationalisation, PR & sector and has worked in university internationalisation, PR & communication and stakeholder management. In addition, she has communication and stakeholder management. In addition, she has experience in the corporate sector in the pharmaceutical industry. experience in the corporate sector in the pharmaceutical industry. Michael Crawford is a Senior Education Specialist with the Michael Crawford is a Senior Education Specialist with the World Bank’s Education Department in the Latin America and Caribbean World Bank’s Education Department in the Latin America and Caribbean Vice Presidency, where he leads work on tertiary education and science, Vice Presidency, where he leads work on tertiary education and science, technology, and innovation (STI). Michael Crawford currently develops and technology, and innovation (STI). Michael Crawford currently develops and manages investment projects and analytic studies in university reform, manages investment projects and analytic studies in university reform, improvement of research and innovation capacity, access to tertiary improvement of research and innovation capacity, access to tertiary education, quality assurance and related issues in Chile, Peru, and Brazil. He education, quality assurance and related issues in Chile, Peru, and Brazil. He recently co-led the joint World Bank/OECD review, Tertiary Education in recently co-led the joint World Bank/OECD review, Tertiary Education in Chile. He previously designed and implemented the World Bank’s first loan Chile. He previously designed and implemented the World Bank’s first loan for the promotion of science, technology, and innovation capacity in Sub for the promotion of science, technology, and innovation capacity in Sub Saharan Africa, the 2004 Uganda Millennium Science Initiative project, and Saharan Africa, the 2004 Uganda Millennium Science Initiative project, and he has developed World Bank policy for STI capacity building. He holds a he has developed World Bank policy for STI capacity building. He holds a Master’s degree in Economics and Development from the Johns Hopkins Master’s degree in Economics and Development from the Johns Hopkins University School of Advanced International Studies (SAIS), and a University School of Advanced International Studies (SAIS), and a Bachelor’s degree in Philosophy and Mathematics from St. John’s College, Bachelor’s degree in Philosophy and Mathematics from St. John’s College, Annapolis, Maryland. Annapolis, Maryland.

Ernesto Flores, a Mexican national, who joined the OECD Programme Ernesto Flores, a Mexican national, who joined the OECD Programme on Institutional Management in Higher Education (IMHE) in Paris in 2009 on Institutional Management in Higher Education (IMHE) in Paris in 2009 for a 15-month secondment to support the OECD review programme Higher for a 15-month secondment to support the OECD review programme Higher Education in Regional and City Development. He holds a Masters degree Education in Regional and City Development. He holds a Masters degree from Monterrey Institute of Technology and Advanced Studies, Mexico. He from Monterrey Institute of Technology and Advanced Studies, Mexico. He has worked as a Consultant in the Quality Centre of Monterrey Tech, has worked as a Consultant in the Quality Centre of Monterrey Tech, developing projects in several companies. In 2002, he was invited to developing projects in several companies. In 2002, he was invited to collaborate to the Strategic Planning and Regional Development Office of collaborate to the Strategic Planning and Regional Development Office of the Executive Office of the President of Mexico. There, he served as planner the Executive Office of the President of Mexico. There, he served as planner and consultant in strategic planning for Federal Government offices to and consultant in strategic planning for Federal Government offices to support them applying strategic thinking and planning, developing support them applying strategic thinking and planning, developing scorecards and using technologies to strategy follow-up in order to align scorecards and using technologies to strategy follow-up in order to align actions consistent with the Mexico’s National Development Plan. Since actions consistent with the Mexico’s National Development Plan. Since 2004, he was working at the Sonora Institute of Technology (Instituto 2004, he was working at the Sonora Institute of Technology (Instituto Tecnológico de Sonora, ITSON) as planning coordinator, participating in Tecnológico de Sonora, ITSON) as planning coordinator, participating in projects aimed at improving economic and social performance in the region, projects aimed at improving economic and social performance in the region, such as the creation of the Technology Park and the Digital City initiatives. such as the creation of the Technology Park and the Digital City initiatives. In addition, he led international projects in the field of innovation-based In addition, he led international projects in the field of innovation-based regional development. regional development. Dewayne Matthews is Vice President for Policy and Strategy of the Dewayne Matthews is Vice President for Policy and Strategy of the Lumina Foundation for Education. Matthews has served in a variety of Lumina Foundation for Education. Matthews has served in a variety of higher education leadership roles, including Senior Adviser to the President higher education leadership roles, including Senior Adviser to the President and Vice President of the Education Commission of the States (ECS), and Vice President of the Education Commission of the States (ECS), Director of Programs and Services for the Western Interstate Commission Director of Programs and Services for the Western Interstate Commission for Higher Education (WICHE), and Executive Director of the New Mexico for Higher Education (WICHE), and Executive Director of the New Mexico Commission on Higher Education. He has been a legislative staff member, Commission on Higher Education. He has been a legislative staff member, faculty member and university trustee, and has worked with higher faculty member and university trustee, and has worked with higher education institutions in Mexico, Canada, and Japan. He began his career as education institutions in Mexico, Canada, and Japan. He began his career as a first-grade teacher in Taos, New Mexico. Matthews is a graduate of the a first-grade teacher in Taos, New Mexico. Matthews is a graduate of the University of New Mexico and earned a master's degree in bilingual University of New Mexico and earned a master's degree in bilingual education at New Mexico Highlands University in Las Vegas, New Mexico education at New Mexico Highlands University in Las Vegas, New Mexico He earned a doctorate in educational leadership and policy studies at He earned a doctorate in educational leadership and policy studies at Arizona State University and received an honorary doctor of humane letters Arizona State University and received an honorary doctor of humane letters from Marycrest International University. from Marycrest International University. Philip Wade, retired (2007) OECD Administrator, is an expert in Philip Wade, retired (2007) OECD Administrator, is an expert in regional and rural development, with specific knowledge in Information and regional and rural development, with specific knowledge in Information and Communication Technologies (ICTs). In OECD, Philip Wade was Communication Technologies (ICTs). In OECD, Philip Wade was responsible for several national territorial reviews in Europe, which responsible for several national territorial reviews in Europe, which objective is to identify and analyse the factors of disparity between regions objective is to identify and analyse the factors of disparity between regions and the implementation of regional policy, so as to formulate and the implementation of regional policy, so as to formulate recommendations aiming to improve its delivery and increase its impact. He recommendations aiming to improve its delivery and increase its impact. He also carried out specific regional tasks and authored several rural case also carried out specific regional tasks and authored several rural case

studies, and before that, the OECD report “ICTs and Rural Development”. studies, and before that, the OECD report “ICTs and Rural Development”. Presently, Philip Wade is one of two experts, coordinating and supervising, Presently, Philip Wade is one of two experts, coordinating and supervising, under the aegis of the Government of Finland, a pilot rural development under the aegis of the Government of Finland, a pilot rural development project in Mozambique. Prior experience in such countries was acquired in project in Mozambique. Prior experience in such countries was acquired in the field of technical assistance in Peru and Ethiopia. Philip Wade is a the field of technical assistance in Peru and Ethiopia. Philip Wade is a graduate in political science of Paris Sorbonne and ENA (economics, law graduate in political science of Paris Sorbonne and ENA (economics, law and public administration). He holds a degree in Higher Latin American and public administration). He holds a degree in Higher Latin American Studies (IHEAL). Before joining OECD, he worked in various international Studies (IHEAL). Before joining OECD, he worked in various international positions in the public and private sectors in France. Besides OECD positions in the public and private sectors in France. Besides OECD publications, he is the author of several books on broadcasting, ICTs and publications, he is the author of several books on broadcasting, ICTs and tourism development. tourism development. Jorge Yutronic, a Chilean national, is a consultant for IDB, WB, Jorge Yutronic, a Chilean national, is a consultant for IDB, WB, UNESCO and national government agencies in management of science, UNESCO and national government agencies in management of science, technology, innovation and competitiveness especially for Chile and other technology, innovation and competitiveness especially for Chile and other Latin American countries. His activities and responsibilities in university Latin American countries. His activities and responsibilities in university management and higher education include: Membership of the International management and higher education include: Membership of the International Consultative Council of MECESUP; implementation of performance Consultative Council of MECESUP; implementation of performance agreements with universities; evaluation of universities; former rector of the agreements with universities; evaluation of universities; former rector of the Universidad de las Américas, a private Chilean university with Universidad de las Américas, a private Chilean university with 25 000 students, Jorge Yutronic is also an entrepreneur: he has created 25 000 students, Jorge Yutronic is also an entrepreneur: he has created technology-based companies and was manager of SONDA, a Latin technology-based companies and was manager of SONDA, a Latin American ICT company. He has been active in Chilean science, technology American ICT company. He has been active in Chilean science, technology and innovation systems. He was member of the boards of directors of and innovation systems. He was member of the boards of directors of Fundación Chile and also President of the Chilean Institute of Engineers. Fundación Chile and also President of the Chilean Institute of Engineers.

HIGHER EDUCATION IN REGIONAL AND CITY DEVELOPMENT: THE BÍO BÍO REGION, CHILE – © OECD 2010 HIGHER EDUCATION IN REGIONAL AND CITY DEVELOPMENT: THE BÍO BÍO REGION, CHILE – © OECD 2010

REGIONAL STEERING COMMITTEE – 151 REGIONAL STEERING COMMITTEE – 151

Annex 2: Regional steering committee Annex 2: Regional steering committee

Coordinators Coordinators • Mr. Martín ZILIC HREPIC, University of Concepción • Mr. Martín ZILIC HREPIC, University of Concepción • Mr. Andrés VIVEROS, Regional Development Agency • Mr. Andrés VIVEROS, Regional Development Agency

Higher Education Institutions Higher Education Institutions • Mr. Sergio LAVANCHY MERINO, Rector of the University of Concepción • Mr. Sergio LAVANCHY MERINO, Rector of the University of Concepción • Mr. Héctor GAETE FERES, Rector of the University of Bío Bío • Mr. Héctor GAETE FERES, Rector of the University of Bío Bío • Mr. Juan CANCINO CANCINO, Rector of the Universidad Católica de la • Mr. Juan CANCINO CANCINO, Rector of the Universidad Católica de la Santísima Concepción Santísima Concepción • Mr. Ramón SAAVEDRA ROGEL, Rector of the Federico Santa María Technical • Mr. Ramón SAAVEDRA ROGEL, Rector of the Federico Santa María Technical University University • Mr. Guido MELLER MAUER, Rector of the San Sebastián University • Mr. Guido MELLER MAUER, Rector of the San Sebastián University • Mr. Ernesto SILVA BAFALLUY, Rector of the Universidad del Desarrollo • Mr. Ernesto SILVA BAFALLUY, Rector of the Universidad del Desarrollo • Mr. Javier VERA JÜNEMANN, Vice-Rector of the INACAP Technical University • Mr. Javier VERA JÜNEMANN, Vice-Rector of the INACAP Technical University • Mr. Pedro TRONCOSO MUÑOZ, Rector of the DUOC UC • Mr. Pedro TRONCOSO MUÑOZ, Rector of the DUOC UC • Ms. Evelyn BECERRA RODRÍGUEZ, Manager, CFT La Araucana • Ms. Evelyn BECERRA RODRÍGUEZ, Manager, CFT La Araucana • Mr. Juan Carlos IUBINI, Rector of the CFT CRECIC • Mr. Juan Carlos IUBINI, Rector of the CFT CRECIC

Business sector representatives Business sector representatives • Mr. Pedro SCHLACK HARNECKER, President of the Chamber of Production • Mr. Pedro SCHLACK HARNECKER, President of the Chamber of Production and Commerce and Commerce • Mr. Marcos CAAMAÑO RÍOS, President of the Chamber of Commerce of • Mr. Marcos CAAMAÑO RÍOS, President of the Chamber of Commerce of Concepción Concepción • Mr. Juan Ignacio ORTIGOSA AMPUERO, President of the Chilean Chamber of • Mr. Juan Ignacio ORTIGOSA AMPUERO, President of the Chilean Chamber of Construction Industry Construction Industry

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• Mr. Jorge SERÓN FERRÉ, President of the Chilean Wood Industry • Mr. Jorge SERÓN FERRÉ, President of the Chilean Wood Industry Corporation, Bío Bío Region Corporation, Bío Bío Region • Mr. Rodrigo SARQUIS SAID, President of the Fishery Industry Association • Mr. Rodrigo SARQUIS SAID, President of the Fishery Industry Association • Mr. Marcos DELUCCHI, Executive Director of CIDERE Bío Bío • Mr. Marcos DELUCCHI, Executive Director of CIDERE Bío Bío • Mr. Claudio LAPÓSTOL MARUÉJOULS, President of CORBIOBIO • Mr. Claudio LAPÓSTOL MARUÉJOULS, President of CORBIOBIO • Mr. Enresto HÛNE MOLLER, President of SOCABIO • Mr. Enresto HÛNE MOLLER, President of SOCABIO • Mr. Hugo ARANCIBIA ZAMORANO, President of FEREPA • Mr. Hugo ARANCIBIA ZAMORANO, President of FEREPA • Mr. Felix ADLERSTEIN, Manager of COINFA • Mr. Felix ADLERSTEIN, Manager of COINFA

Public sector representatives Public sector representatives • Mr. César ARRIAGADA, Regional Secretary of the Ministry of Economy • Mr. César ARRIAGADA, Regional Secretary of the Ministry of Economy • Mr. Rodrigo MARTÍNEZ FERNÁNDEZ, Regional Government • Mr. Rodrigo MARTÍNEZ FERNÁNDEZ, Regional Government • Mr. Marcelo CHAVÉZ VELASQUEZ, Regional Council • Mr. Marcelo CHAVÉZ VELASQUEZ, Regional Council • Mr. Mario MORALES BURGOS, Regional Council • Mr. Mario MORALES BURGOS, Regional Council

HIGHER EDUCATION IN REGIONAL AND CITY DEVELOPMENT: THE BÍO BÍO REGION, CHILE –© OECD 2010 HIGHER EDUCATION IN REGIONAL AND CITY DEVELOPMENT: THE BÍO BÍO REGION, CHILE –© OECD 2010 REGIONAL SELF-EVALUATION REPORT’S RESEARCH TEAM – 153 REGIONAL SELF-EVALUATION REPORT’S RESEARCH TEAM – 153

Annex 3: Regional self-evaluation report’s research team Annex 3: Regional self-evaluation report’s research team

Coordinator Coordinator • Jorge DRESDNER CID, Ph.D., Department of Economics, University of • Jorge DRESDNER CID, Ph.D., Department of Economics, University of Concepción Concepción

Principal researchers Principal researchers • Andrés ACUÑA DUARTE, M.S., Department of Economics and Finance, • Andrés ACUÑA DUARTE, M.S., Department of Economics and Finance, Bío Bío University Bío Bío University • Bernardo CASTRO RAMÍREZ, Ph.D., Department of Sociology, University of • Bernardo CASTRO RAMÍREZ, Ph.D., Department of Sociology, University of Concepción Concepción • Miguel QUIROGA SUAZO, Ph.D., (c), Department of Economics, University of • Miguel QUIROGA SUAZO, Ph.D., (c), Department of Economics, University of Concepción Concepción • Hugo SALGADO CABRERA, Ph.D., Department of Economics, University of • Hugo SALGADO CABRERA, Ph.D., Department of Economics, University of Concepción Concepción • Andrés ULLOA OLIVA, Ph. D. (c), Department of Economics, Universidad • Andrés ULLOA OLIVA, Ph. D. (c), Department of Economics, Universidad Católica de la Santísima Concepción Católica de la Santísima Concepción • Felipe VÁSQUEZ LAVIN, Ph.D., Department of Economics, Universidad de • Felipe VÁSQUEZ LAVIN, Ph.D., Department of Economics, Universidad de Concepción Concepción

Assistant researchers Assistant researchers • Hans ALTAMIRANO, Department of Economics, University of Concepción • Hans ALTAMIRANO, Department of Economics, University of Concepción • Jorge ESPINOZA, M.B.A., Department of Administration, Universidad Católica • Jorge ESPINOZA, M.B.A., Department of Administration, Universidad Católica de la Santísima Concepción de la Santísima Concepción • Gabriel PINO, M.S., Department of Economics, University of Concepción • Gabriel PINO, M.S., Department of Economics, University of Concepción • Gloria RIVAS PALMA, M.S. (c), Student Development Directorate, Bío Bío • Gloria RIVAS PALMA, M.S. (c), Student Development Directorate, Bío Bío University University • Leonardo SALAZAR, M.S., Department of Economics, University of • Leonardo SALAZAR, M.S., Department of Economics, University of Concepción Concepción

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• Grethel ZURITA ZAPATA, M.S., Department of Economics, University of • Grethel ZURITA ZAPATA, M.S., Department of Economics, University of Concepción Concepción

Administrative support Administrative support • Marcela ALVEAL, Department of Economics, University of Concepción • Marcela ALVEAL, Department of Economics, University of Concepción

HIGHER EDUCATION IN REGIONAL AND CITY DEVELOPMENT: THE BÍO BÍO REGION, CHILE –© OECD 2010 HIGHER EDUCATION IN REGIONAL AND CITY DEVELOPMENT: THE BÍO BÍO REGION, CHILE –© OECD 2010 PROGRAMME OF THE REVIEW VISIT – 155 PROGRAMME OF THE REVIEW VISIT – 155

Annex 4: OECD-WB review visit programme Annex 4: OECD-WB review visit programme

Bío Bío Region, 16-21 August 2009 Bío Bío Region, 16-21 August 2009

Sunday 16 August Sunday 16 August 18:00 OECD-World Bank review team internal meeting 18:00 OECD-World Bank review team internal meeting

Monday 17 August Monday 17 August 09:00-11:00 Technological University of Chile (INACAP) 09:00-11:00 Technological University of Chile (INACAP) Leadership, management and faculty members Leadership, management and faculty members Mr. Javier VERA JÜNEMANN, Vice-President Mr. Javier VERA JÜNEMANN, Vice-President Mr. Renzo CORREA, Director of Academic Affairs Mr. Renzo CORREA, Director of Academic Affairs Mr. Víctor ULLOA, Director of Finances and Administration Mr. Víctor ULLOA, Director of Finances and Administration Mr. Blas PEREIRA, Director of Business and Administration Programme Mr. Blas PEREIRA, Director of Business and Administration Programme Mr. Ernesto PAREDES, Director of Mechanics Programme Mr. Ernesto PAREDES, Director of Mechanics Programme Mr. Francisco FUENZALIDA, Director of Automation Programme Mr. Francisco FUENZALIDA, Director of Automation Programme Mr. Flavio GONZÁLEZ, Director of Construction and Design Programme Mr. Flavio GONZÁLEZ, Director of Construction and Design Programme Mr. Luis ENDÍA, Director of Tourism and Hotel Management Programme Mr. Luis ENDÍA, Director of Tourism and Hotel Management Programme Ms. Evelyn MARTÍNEZ, Director of Education Programme Ms. Evelyn MARTÍNEZ, Director of Education Programme Ms. Yanet MUÑOZ, Head of Health Department Ms. Yanet MUÑOZ, Head of Health Department Ms. María Paz JIMÉNEZ, Director of Communications Ms. María Paz JIMÉNEZ, Director of Communications Ms. Daniela VALLADARES, Student Affairs Ms. Daniela VALLADARES, Student Affairs Ms. María Victoria HERRERA, Director of Outreach Ms. María Victoria HERRERA, Director of Outreach Ms. Faridi JURI SEPÚLVEDA, Registrar’s Office Ms. Faridi JURI SEPÚLVEDA, Registrar’s Office Ms. Sady UGARTE, Professor of the Hospitality Management Programme Ms. Sady UGARTE, Professor of the Hospitality Management Programme

11:00-13:00 Thematic meeting on Entrepreneurship and Collaboration with SMEs 11:00-13:00 Thematic meeting on Entrepreneurship and Collaboration with SMEs Mr. Javier VERA JÜNEMANN, Vice-President, INACAP Mr. Javier VERA JÜNEMANN, Vice-President, INACAP Ms. Silvia GASCÓN, INETEC (INACAP’s Business incubator) Ms. Silvia GASCÓN, INETEC (INACAP’s Business incubator) Mr. Vicente HERNÁNDEZ, CDEUBB (University of Bío Bío’s Business Development Mr. Vicente HERNÁNDEZ, CDEUBB (University of Bío Bío’s Business Development Centre) Centre) Mr. Marcelo VERGARA, IDEAINCUBA (University of Concepción’s Business Mr. Marcelo VERGARA, IDEAINCUBA (University of Concepción’s Business incubator) incubator) Mr. Renzo CORREA, Director of Academic Affairs, INACAP Mr. Renzo CORREA, Director of Academic Affairs, INACAP Mr. Víctor ULLOA, Director of Finances and Administration, INACAP Mr. Víctor ULLOA, Director of Finances and Administration, INACAP

HIGHER EDUCATION IN REGIONAL AND CITY DEVELOPMENT: THE BÍO BÍO REGION, CHILE – © OECD 2010 HIGHER EDUCATION IN REGIONAL AND CITY DEVELOPMENT: THE BÍO BÍO REGION, CHILE – © OECD 2010 156 – PROGRAMME OF THE REVIEW VISIT 156 – PROGRAMME OF THE REVIEW VISIT

Thematic meeting on Entrepreneurship and Collaboration with SMEs (cont’d) Thematic meeting on Entrepreneurship and Collaboration with SMEs (cont’d) Mr. Victor DÍAZ, Business Manager, INETEC Mr. Victor DÍAZ, Business Manager, INETEC Ms. Victoria HERRERA, Outreach Director, INACAP Ms. Victoria HERRERA, Outreach Director, INACAP Mr. Gonzalo OLIVARI, Director for Management, DUOC Mr. Gonzalo OLIVARI, Director for Management, DUOC Mr. Angelo GARAY, Director of Industrial Design, DUOC Mr. Angelo GARAY, Director of Industrial Design, DUOC Mr. Nelson AYALA, Director of Public Relations, DUOC Mr. Nelson AYALA, Director of Public Relations, DUOC Mr. Patricio CORTÉS, Executive Director, Centre for Entrepreneurship and Innovation, Mr. Patricio CORTÉS, Executive Director, Centre for Entrepreneurship and Innovation, Universidad del Desarrollo (UDD) Universidad del Desarrollo (UDD) Mr. Iván VALENZUELA, Dean, Faculty of Economy, UDD Mr. Iván VALENZUELA, Dean, Faculty of Economy, UDD Mr. Jorge ESPINOZA, Head, Business Management Department, Universidad Mr. Jorge ESPINOZA, Head, Business Management Department, Universidad Católica de la Santísima Concepción (UCSC) Católica de la Santísima Concepción (UCSC) Mr. Guillermo SCHAFFELD, General Director, Research and Outreach Affairs, Mr. Guillermo SCHAFFELD, General Director, Research and Outreach Affairs, San Sebastián University (USS) San Sebastián University (USS) Mr. Marcos DELUCCHI, Executive Director, Industrial Corporation for the Regional Mr. Marcos DELUCCHI, Executive Director, Industrial Corporation for the Regional Development of the Bío Bío Region (CIDERE) Development of the Bío Bío Region (CIDERE) Mr. Felix ALDERSTEIN, President, COINFA Mr. Felix ALDERSTEIN, President, COINFA Mr. Jürgen CARRASCO, Director, Civil and Industrial Engineering School, USS Mr. Jürgen CARRASCO, Director, Civil and Industrial Engineering School, USS Mr. Alejandro NAVARRO, Director of Research, Federico Santa María Technical Mr. Alejandro NAVARRO, Director of Research, Federico Santa María Technical University University

15:00-16:00 University of Bío Bío (UBB) - Leadership, management and Deans 15:00-16:00 University of Bío Bío (UBB) - Leadership, management and Deans Mr. Héctor GAETE FERES, Rector Mr. Héctor GAETE FERES, Rector Ms. Gloria GÓMEZ VERA, Provost Ms. Gloria GÓMEZ VERA, Provost Mr. Aldo BALLERINI ARROYO, Vice-President for Academic Affairs Mr. Aldo BALLERINI ARROYO, Vice-President for Academic Affairs Mr. Luis AMÉSTICA RIVAS, Vice-President for Finances Mr. Luis AMÉSTICA RIVAS, Vice-President for Finances Mr. Peter BACKHOUSE ERIAZO, Dean, Faculty of Engineering Mr. Peter BACKHOUSE ERIAZO, Dean, Faculty of Engineering Mr. Ivan CARTES SIADE, Dean, Faculty of Architecture Mr. Ivan CARTES SIADE, Dean, Faculty of Architecture Mr. Hector SALDIA BARAHONA, Dean, Faculty of Business Sciences Mr. Hector SALDIA BARAHONA, Dean, Faculty of Business Sciences Mr. Marco Aurelio REYES COCA, Dean, Faculty of Education Mr. Marco Aurelio REYES COCA, Dean, Faculty of Education Mrs. Nora PLAZA CEBALLOS, Dean, Faculty of Health Mrs. Nora PLAZA CEBALLOS, Dean, Faculty of Health Mr. Mauricio CATALDO MONSALVES, Dean, Faculty of Sciences Mr. Mauricio CATALDO MONSALVES, Dean, Faculty of Sciences Mrs. Elizabeth GRANDÓN TOLEDO, Director for Institutional Affairs Mrs. Elizabeth GRANDÓN TOLEDO, Director for Institutional Affairs Mr. Mario RAMOS, Director for Research, Development and Innovation Mr. Mario RAMOS, Director for Research, Development and Innovation

16:00-17:00 University of Bío Bío - Outreach activities 16:00-17:00 University of Bío Bío - Outreach activities Mr. Sergio MOFFAT LÓPEZ, Director, Centre for Urban and Regional Studies (CEUR) Mr. Sergio MOFFAT LÓPEZ, Director, Centre for Urban and Regional Studies (CEUR) Mr. Francisco GATICA, Researcher, CEUR Mr. Francisco GATICA, Researcher, CEUR Mrs. Magaly MELLA ABALOS, Researcher, CEUR Mrs. Magaly MELLA ABALOS, Researcher, CEUR Mr. Ariel YÉVENES, Researcher, CEUR Mr. Ariel YÉVENES, Researcher, CEUR Mr. Roberto LIRA, Director, Urbanism Laboratory Mr. Roberto LIRA, Director, Urbanism Laboratory Mrs. Lilián LAGOS, Researcher, Urbanism Laboratory Mrs. Lilián LAGOS, Researcher, Urbanism Laboratory Mr. Manuel ALBARRÁN ULSEN, Director, Public Policies Programme Mr. Manuel ALBARRÁN ULSEN, Director, Public Policies Programme Mr. Nelson GARCÍA ARANEDA, Public Policies Programme Mr. Nelson GARCÍA ARANEDA, Public Policies Programme Ms. Vivianne HASSE RIQUELME, Public Policies Programme Ms. Vivianne HASSE RIQUELME, Public Policies Programme Mr. Javier LEÓN, Public Policies Programme Mr. Javier LEÓN, Public Policies Programme Ms. Pilar LASO, Public Policies Programme Ms. Pilar LASO, Public Policies Programme Mr. Ariel BOBADILLA, Director, Technology Transfer Office Mr. Ariel BOBADILLA, Director, Technology Transfer Office Mrs. Ninón JEGÓ ARAYA, Director of Outreach Mrs. Ninón JEGÓ ARAYA, Director of Outreach Mr. Cristhian AGUILERA, Director of Training Mr. Cristhian AGUILERA, Director of Training Mr. Francisco NUÑEZ CERDA, Researcher Mr. Francisco NUÑEZ CERDA, Researcher Mr. Francisco RAMIS, Researcher Mr. Francisco RAMIS, Researcher

HIGHER EDUCATION IN REGIONAL AND CITY DEVELOPMENT: THE BÍO BÍO REGION, CHILE –© OECD 2010 HIGHER EDUCATION IN REGIONAL AND CITY DEVELOPMENT: THE BÍO BÍO REGION, CHILE –© OECD 2010 PROGRAMME OF THE REVIEW VISIT – 157 PROGRAMME OF THE REVIEW VISIT – 157

17:00-17:30 Visit to University of Bío Bío’s Biodeterioration and Nanotechnology Labs 17:00-17:30 Visit to University of Bío Bío’s Biodeterioration and Nanotechnology Labs

17:30-19:00 Thematic meeting on the Bío Bío’s Forestry Cluster 17:30-19:00 Thematic meeting on the Bío Bío’s Forestry Cluster Dr. Jose NAVARRETE, Researcher, University of Bío Bío (UBB) Dr. Jose NAVARRETE, Researcher, University of Bío Bío (UBB) Dr. Cecilia POBLETE, Researcher, UBB Dr. Cecilia POBLETE, Researcher, UBB Mr. Peter BACKHOUSE ERIAZO, Dean, Faculty of Engineering, UBB Mr. Peter BACKHOUSE ERIAZO, Dean, Faculty of Engineering, UBB Dr. Cecilia BUSTOS, Wood Engineering Department, UBB Dr. Cecilia BUSTOS, Wood Engineering Department, UBB Ms. María Eugenia HERMOSILLA, Wood Industry, CFT Lota Arauco Ms. María Eugenia HERMOSILLA, Wood Industry, CFT Lota Arauco Mr. Cristián GÓMEZ, Biotechnology Engineering Department, San Sebastián Mr. Cristián GÓMEZ, Biotechnology Engineering Department, San Sebastián University University Mr. Ángelo GARAY, Director of Industrial Design, DUOC-UC Mr. Ángelo GARAY, Director of Industrial Design, DUOC-UC Mr. Renato SEGURA, Faculty of Economy, Universidad Católica de la Santísima Mr. Renato SEGURA, Faculty of Economy, Universidad Católica de la Santísima Concepción Concepción Mr. Sergio VALDÉS, Regional Manager, Forestry Institute Mr. Sergio VALDÉS, Regional Manager, Forestry Institute Mr. Jean Pierre LASERRE, Product Development, Forestal Mininco CMC Maderas Mr. Jean Pierre LASERRE, Product Development, Forestal Mininco CMC Maderas Mr. Mauricio LAGOS, MASISA Mr. Mauricio LAGOS, MASISA Mr. Vicente GÁMBARO, Research and Development Manager, Oxiquim, S.A. Mr. Vicente GÁMBARO, Research and Development Manager, Oxiquim, S.A. Mr. Sergio VARGAS, Manager, VSV Proyectos Industriales Mr. Sergio VARGAS, Manager, VSV Proyectos Industriales Mr. Bruno GORRINI, Technology Manager, Paneles Arauco – Planta Nueva Aldea Mr. Bruno GORRINI, Technology Manager, Paneles Arauco – Planta Nueva Aldea Mr. Jorge CALDERÓN, Manager, Wood Technology Centre, University of Bío Bío Mr. Jorge CALDERÓN, Manager, Wood Technology Centre, University of Bío Bío

19:30 Dinner with Regional Council members – Hotel Araucano 19:30 Dinner with Regional Council members – Hotel Araucano Mr. Eduardo ARAYA POBLETE Mr. Eduardo ARAYA POBLETE Mr. Marcelo CHÁVEZ VELÁSQUEZ Mr. Marcelo CHÁVEZ VELÁSQUEZ Mr. Claudio ARTEAGA REYES Mr. Claudio ARTEAGA REYES Mr. Mario MORALES BURGOS Mr. Mario MORALES BURGOS Mr. Oscar FERREL MARTÍNEZ Mr. Oscar FERREL MARTÍNEZ

Tuesday 18 August Tuesday 18 August 10:00-12:00 Thematic meeting on Agriculture and Food Cluster 10:00-12:00 Thematic meeting on Agriculture and Food Cluster Mr. Fernando BÓRQUEZ, Director, Chillán Campus, UDEC Mr. Fernando BÓRQUEZ, Director, Chillán Campus, UDEC Ms. Susana FISCHER, Researcher, UDEC Ms. Susana FISCHER, Researcher, UDEC Mr. Fidel Ovídio CASTRO, Researcher, UDEC Mr. Fidel Ovídio CASTRO, Researcher, UDEC Ms. Claudia TRAMON, Researcher, UDEC Ms. Claudia TRAMON, Researcher, UDEC Ms. Gloria GÓMEZ VERA, Provost, University of Bío Bío (UBB) Ms. Gloria GÓMEZ VERA, Provost, University of Bío Bío (UBB) Mr. Aldo BALLERINI, Vice-President for Academic Affairs, UBB Mr. Aldo BALLERINI, Vice-President for Academic Affairs, UBB Ms. Nora PLAZA CEBALLOS, Dean, Faculty of Health Sciences, UBB Ms. Nora PLAZA CEBALLOS, Dean, Faculty of Health Sciences, UBB Ms. Fabiola CERDA LEAL, Food Technology, UBB Ms. Fabiola CERDA LEAL, Food Technology, UBB Ms. Luisa ARRIAGADA SAN MARTÍN, Engineering, UBB Ms. Luisa ARRIAGADA SAN MARTÍN, Engineering, UBB Mr. Patricio OLIVA MORESCO, Master in Nutrition, UBB Mr. Patricio OLIVA MORESCO, Master in Nutrition, UBB Mr. Juan Carlos YÉVENES, Deputy-Director, Centre for Research and Development Mr. Juan Carlos YÉVENES, Deputy-Director, Centre for Research and Development on Agribusiness, UBB on Agribusiness, UBB Mr. Eduardo JERIA, Director, Centre for Agricultural Innovation and Technology Mr. Eduardo JERIA, Director, Centre for Agricultural Innovation and Technology Transfer (CITTA), UCSC – Professional Institute at Cañete Transfer (CITTA), UCSC – Professional Institute at Cañete Ms. María Claudia PÉREZ, Director, Tourism Programme, DUOC Ms. María Claudia PÉREZ, Director, Tourism Programme, DUOC Mr. Jorge SAN MARTÍN, DOUC Mr. Jorge SAN MARTÍN, DOUC Mr. Carlos MOLINA, Vice-President, INACAP Mr. Carlos MOLINA, Vice-President, INACAP Ms. María Teresa MORALES, INACAP Ms. María Teresa MORALES, INACAP Mr. Marcos GERDING, Researcher, National Institute for Agriculture Research (INIA) Mr. Marcos GERDING, Researcher, National Institute for Agriculture Research (INIA)

HIGHER EDUCATION IN REGIONAL AND CITY DEVELOPMENT: THE BÍO BÍO REGION, CHILE – © OECD 2010 HIGHER EDUCATION IN REGIONAL AND CITY DEVELOPMENT: THE BÍO BÍO REGION, CHILE – © OECD 2010 158 – PROGRAMME OF THE REVIEW VISIT 158 – PROGRAMME OF THE REVIEW VISIT

12:00-13:00 University of Bío Bío, Chillán Campus 12:00-13:00 University of Bío Bío, Chillán Campus Visit to the Food safety and certification laboratory (LECICA) Visit to the Food safety and certification laboratory (LECICA)

13:30-15:00 INACAP, Chillán Campus 13:30-15:00 INACAP, Chillán Campus Lunch meeting with Mayors of Chillán, Chillán Viejo and San Carlos, Governor of the Lunch meeting with Mayors of Chillán, Chillán Viejo and San Carlos, Governor of the Province of Ñuble Province of Ñuble

16:30-18:30 Meeting with the Regional Steering Committee 16:30-18:30 Meeting with the Regional Steering Committee

19:30-22:00 Universidad del Desarrollo (UDD) 19:30-22:00 Universidad del Desarrollo (UDD) Leadership and faculty Leadership and faculty Mr. Sergio HERÁNDEZ OLLARZÚ, Vice-President for Graduate Studies and Mr. Sergio HERÁNDEZ OLLARZÚ, Vice-President for Graduate Studies and Research Research Mr. Pedro RAMÍREZ, Regional Manager, Chilean Security Association Mr. Pedro RAMÍREZ, Regional Manager, Chilean Security Association Mr. Félix ALDERSTEIN, President, COINFA Mr. Félix ALDERSTEIN, President, COINFA Mr. Daniel CONTESSE, Mininco Forest Company Mr. Daniel CONTESSE, Mininco Forest Company Mr. Álvaro MUÑOZ, President, Providencia Professional Institute Mr. Álvaro MUÑOZ, President, Providencia Professional Institute Mr. Pedro SILVA RIQUELME, Research Director, Faculty of Engineering Mr. Pedro SILVA RIQUELME, Research Director, Faculty of Engineering Mr. Pelayo COVARRUBIAS, Director of Institutional Affairs Mr. Pelayo COVARRUBIAS, Director of Institutional Affairs Ms. Alejandra AMENÁBAR FIGUEROA, Dean, Faculty of Design Ms. Alejandra AMENÁBAR FIGUEROA, Dean, Faculty of Design Ms. Teresita SERRANO GILDEMEISTER, Dean, Faculty of Psychology Ms. Teresita SERRANO GILDEMEISTER, Dean, Faculty of Psychology Ms. Paulina ARTIGAS MEDINA, Director of Outreach Ms. Paulina ARTIGAS MEDINA, Director of Outreach Ms. Florencia JOFRÉ MANIEU, Vice-President for Undergraduate Studies Ms. Florencia JOFRÉ MANIEU, Vice-President for Undergraduate Studies

Wednesday 19 August Wednesday 19 August 09:00-11:00 University of Concepción - Leadership and top management 09:00-11:00 University of Concepción - Leadership and top management Mr. Sergio LAVANCHY M., President Mr. Sergio LAVANCHY M., President Mr. Ernesto FIGUEROA , Vice President Mr. Ernesto FIGUEROA , Vice President Mr. Alberto LARRAIN P., Vice President for Administrative and Economic Affairs Mr. Alberto LARRAIN P., Vice President for Administrative and Economic Affairs Mr. Jaime BAEZA H., Director for Research Mr. Jaime BAEZA H., Director for Research Mr. José SÁNCHEZ HENRÍQUEZ, Director for Teaching Mr. José SÁNCHEZ HENRÍQUEZ, Director for Teaching Ms. Ximena GARCÍA, Director for Postgraduate Studies Ms. Ximena GARCÍA, Director for Postgraduate Studies Mr. Iván ARAYA, Director for International Affairs Mr. Iván ARAYA, Director for International Affairs

11:00-12:00 University of Concepción - Deans and Directors 11:00-12:00 University of Concepción - Deans and Directors Ms. María NIEVES ALONSO, Director, Cultural Affairs Ms. María NIEVES ALONSO, Director, Cultural Affairs Mr. Miguel CORNEJO AMÉSTICA, Director, Student Affairs Mr. Miguel CORNEJO AMÉSTICA, Director, Student Affairs Mr. Jaime BAEZA H., Director for Research Mr. Jaime BAEZA H., Director for Research Mr. José SÁNCHEZ HENRÍQUEZ, Director for Teaching Mr. José SÁNCHEZ HENRÍQUEZ, Director for Teaching Mr. Iván ARAYA, Director, International and Institutional Affairs Mr. Iván ARAYA, Director, International and Institutional Affairs Mr. Fernando BÓRQUEZ, Director, Chillán Campus Mr. Fernando BÓRQUEZ, Director, Chillán Campus Mr. Luis HAUENSTEIN DORN, Director, Los Ángeles Campus Mr. Luis HAUENSTEIN DORN, Director, Los Ángeles Campus

14:00-15:30 Lunch meeting with students 14:00-15:30 Lunch meeting with students

HIGHER EDUCATION IN REGIONAL AND CITY DEVELOPMENT: THE BÍO BÍO REGION, CHILE –© OECD 2010 HIGHER EDUCATION IN REGIONAL AND CITY DEVELOPMENT: THE BÍO BÍO REGION, CHILE –© OECD 2010 PROGRAMME OF THE REVIEW VISIT – 159 PROGRAMME OF THE REVIEW VISIT – 159

16:00-18:00 Thematic meeting on the pathway from research to commercialisation 16:00-18:00 Thematic meeting on the pathway from research to commercialisation Mr. Jaime BAEZA, Director, Research Unit, UDEC Mr. Jaime BAEZA, Director, Research Unit, UDEC Mr. Galo CÁRDENAS, Researcher, UDEC Mr. Galo CÁRDENAS, Researcher, UDEC Mr. Rolando HERNÁNDEZ, Researcher, UDEC Mr. Rolando HERNÁNDEZ, Researcher, UDEC Mr. Alex BERG, Director, Technology Development Unit, UDEC Mr. Alex BERG, Director, Technology Development Unit, UDEC Ms. Ximena SEPÚLVEDA, Intellectual Property, UDEC Ms. Ximena SEPÚLVEDA, Intellectual Property, UDEC Mr. Marcelo VERGARA, Director, IDEAINCUBA Business Incubator, UDEC Mr. Marcelo VERGARA, Director, IDEAINCUBA Business Incubator, UDEC Mr. Luis AGUAYO, Researcher, UDEC Mr. Luis AGUAYO, Researcher, UDEC Ms. Verónica SALCEDO, Industrial Property, UDEC Ms. Verónica SALCEDO, Industrial Property, UDEC Ms. Pía ZEPEDA, Industrial Property, UDEC Ms. Pía ZEPEDA, Industrial Property, UDEC Ms. Mariella GUTIÉRREZ, Director, Research, Universidad Católica de la Santísima Ms. Mariella GUTIÉRREZ, Director, Research, Universidad Católica de la Santísima Concepción (UCSC) Concepción (UCSC) Mr. Christian SCHMITZ, Professor of Law, UCSC Mr. Christian SCHMITZ, Professor of Law, UCSC Mr. Guillermo SCHAFFELD, General Director, Research and Outreach Affairs, Mr. Guillermo SCHAFFELD, General Director, Research and Outreach Affairs, San Sebastián University (USS) San Sebastián University (USS) Mr. Eric BARADIT, Director, Research, University of Bío Bío (UBB) Mr. Eric BARADIT, Director, Research, University of Bío Bío (UBB) Mr. Mario RAMOS, UBB Mr. Mario RAMOS, UBB Mr. Alejandro NAVARRO, Research Director, Federico Santa María Technical Mr. Alejandro NAVARRO, Research Director, Federico Santa María Technical University (UTFSM) University (UTFSM) Mr. Manuel SAN MARTÍN, UTSFM Mr. Manuel SAN MARTÍN, UTSFM Mr. Gonzalo OLIVARI, Director, Administration and Business, DUOC Mr. Gonzalo OLIVARI, Director, Administration and Business, DUOC Mr. Cristian VAN RYSSELBERGE, Deputy-Director for Administration, DUOC Mr. Cristian VAN RYSSELBERGE, Deputy-Director for Administration, DUOC Ms. Pamela CANOVAS, Director for Communication, DUOC Ms. Pamela CANOVAS, Director for Communication, DUOC Mr. Renzo CORREA, Research Director, INACAP Mr. Renzo CORREA, Research Director, INACAP Ms. María Teresa MORALES, Academic Advisor, INACAP Ms. María Teresa MORALES, Academic Advisor, INACAP Mr. Hugo GUZMÁN, CFT La Araucana Mr. Hugo GUZMÁN, CFT La Araucana Mr. Eduardo RODRÍGUEZ, Manager, Bioforest Mr. Eduardo RODRÍGUEZ, Manager, Bioforest Mr. Víctor SAN JUAN, Manager, Aerus Mr. Víctor SAN JUAN, Manager, Aerus Mr. Felix ADLERSTEIN, President, COINFA Mr. Felix ADLERSTEIN, President, COINFA Mr. Genaro GOTELLI, VITOAGRO Mr. Genaro GOTELLI, VITOAGRO Mr. Roberto VEGA, Manager, Pasteur Laboratory Mr. Roberto VEGA, Manager, Pasteur Laboratory

20:30 Dinner with business representatives 20:30 Dinner with business representatives Mr. Pedro SCHLACK, President, Concepción Chamber of Production and Commerce Mr. Pedro SCHLACK, President, Concepción Chamber of Production and Commerce (CPCC) (CPCC) Mr. Javier VERA JÜNEMANN, Vice-President, INACAP Mr. Javier VERA JÜNEMANN, Vice-President, INACAP Mr. Mario SEGUEL, Concepción Chamber of Production and Commerce Mr. Mario SEGUEL, Concepción Chamber of Production and Commerce Mr. Waldo MUÑOZ, Manager, Regional Centre for Computer and Informatics Mr. Waldo MUÑOZ, Manager, Regional Centre for Computer and Informatics (CRECIC) (CRECIC) Mr. Arturo AGUAYO, Manager, Huachipato Steel Company Mr. Arturo AGUAYO, Manager, Huachipato Steel Company Mr. Pedro RAMÍREZ, President, Chilean Construction Chamber Mr. Pedro RAMÍREZ, President, Chilean Construction Chamber Mr. Marcos DELUCCHI, Executive Director, Industrial Corporation for the Regional Mr. Marcos DELUCCHI, Executive Director, Industrial Corporation for the Regional Development of the Bío Bío Region (CIDERE) Development of the Bío Bío Region (CIDERE) Mr. Félix ALDERSTEIN, President, COINFA Mr. Félix ALDERSTEIN, President, COINFA Mr. Leoncio TORO, General Manager, Concepción Chamber of Production and Mr. Leoncio TORO, General Manager, Concepción Chamber of Production and Commerce Commerce

HIGHER EDUCATION IN REGIONAL AND CITY DEVELOPMENT: THE BÍO BÍO REGION, CHILE – © OECD 2010 HIGHER EDUCATION IN REGIONAL AND CITY DEVELOPMENT: THE BÍO BÍO REGION, CHILE – © OECD 2010 160 – PROGRAMME OF THE REVIEW VISIT 160 – PROGRAMME OF THE REVIEW VISIT

Thursday 20 August Thursday 20 August 08:30-09:45 Meeting with central government representatives 08:30-09:45 Meeting with central government representatives

10:00-11:00 San Sebastián University(USS) 10:00-11:00 San Sebastián University(USS) Leadership and top management Leadership and top management Mr. Ricardo RIESCO JARAMILLO, President Mr. Ricardo RIESCO JARAMILLO, President Mr. Alfonso RIVAS OTÁROLA, Vice-President Mr. Alfonso RIVAS OTÁROLA, Vice-President Ms. Sandra GUZMÁN MARTÍNEZ, Secretary-General Ms. Sandra GUZMÁN MARTÍNEZ, Secretary-General Mr. Guillermo SCHAFFELD, General Director, Research and Outreach Affairs Mr. Guillermo SCHAFFELD, General Director, Research and Outreach Affairs Mr. Ricardo HEPP KUSCHEL, Institutional Affairs Director Mr. Ricardo HEPP KUSCHEL, Institutional Affairs Director

11:00-12:00 San Sebastián University (USS) 11:00-12:00 San Sebastián University (USS) Faculty members and staff Faculty members and staff

12:00-13:45 Thematic meeting on Poverty, inequity and social issues 12:00-13:45 Thematic meeting on Poverty, inequity and social issues Mr. Guillermo SCHAFFELD, General Director, Research and Outreach Affairs, Mr. Guillermo SCHAFFELD, General Director, Research and Outreach Affairs, San Sebastián University (USS) San Sebastián University (USS) Mr. Alfonso RIVAS OTÁLORA, Vice-President, USS Mr. Alfonso RIVAS OTÁLORA, Vice-President, USS Mr. Ricardo HEPP KUSCHEL, Institutional Affairs Director, USS Mr. Ricardo HEPP KUSCHEL, Institutional Affairs Director, USS Mr. Osvaldo RODRÍGUEZ, Director, School of Social Work, USS Mr. Osvaldo RODRÍGUEZ, Director, School of Social Work, USS Mr. Armando CARTES, Director, School of Law, USS Mr. Armando CARTES, Director, School of Law, USS Mr. Sergio CASTRO ALFARO, Dean, Faculty of Dentistry, USS Mr. Sergio CASTRO ALFARO, Dean, Faculty of Dentistry, USS Mr. Jorge JIMÉNEZ ESPINOZA, Dean, Faculty of Education, USS Mr. Jorge JIMÉNEZ ESPINOZA, Dean, Faculty of Education, USS Mr. Jürgen CARRASCO KRUMM, Director, Civil and Industrial Engineering Mr. Jürgen CARRASCO KRUMM, Director, Civil and Industrial Engineering Department, USS Department, USS Mr. Andrés ULLOA, Academic Projects Director, UCSC Mr. Andrés ULLOA, Academic Projects Director, UCSC Mr. Rafael GALDAMES FUENTES, Regional Education Director, University of Mr. Rafael GALDAMES FUENTES, Regional Education Director, University of Bío Bío (UBB) Bío Bío (UBB) Mr. Manuel ALBARRÁN ULSEN, UBB Mr. Manuel ALBARRÁN ULSEN, UBB Mr. Jorge URRUTIA, Federico Santa María Technical University (USM) Mr. Jorge URRUTIA, Federico Santa María Technical University (USM) Ms. Rita NAVARRO, Social Responsibility Programme, University of Concepción Ms. Rita NAVARRO, Social Responsibility Programme, University of Concepción (UDEC) (UDEC) Mr. Jorge ROJAS, Dean, Faculty of Social Sciences, UDEC Mr. Jorge ROJAS, Dean, Faculty of Social Sciences, UDEC Mr. Juan SAAVEDRA, Dean, Faculty of Economy, UDEC Mr. Juan SAAVEDRA, Dean, Faculty of Economy, UDEC Ms. Evelyn MARTÍNEZ, Director for Education, INACAP Ms. Evelyn MARTÍNEZ, Director for Education, INACAP Ms. María Antonieta QUIJADA, Director for Social Work, INACAP Ms. María Antonieta QUIJADA, Director for Social Work, INACAP Mr. Pedro SILVA RIQUELME, Research Director, Universidad del Desarrollo (UDD) Mr. Pedro SILVA RIQUELME, Research Director, Universidad del Desarrollo (UDD) Ms. Florencia JOFRÉ, Vice-President for Undergraduate Studies (UDD) Ms. Florencia JOFRÉ, Vice-President for Undergraduate Studies (UDD) Mr. Rodrigo CASTRO, Deputy-Dean, Graduate Studies (UDD) Mr. Rodrigo CASTRO, Deputy-Dean, Graduate Studies (UDD) Ms. Katia WEISSER, Director for Student Affairs, DUOC Ms. Katia WEISSER, Director for Student Affairs, DUOC Ms. Ximena BUSTOS, CFT La Araucana Ms. Ximena BUSTOS, CFT La Araucana Mr. Claudio LAPOSTOL, President, CORBIOBIO Mr. Claudio LAPOSTOL, President, CORBIOBIO Mr. Marcos DELUCCHI, Executive Director, CIDERE Mr. Marcos DELUCCHI, Executive Director, CIDERE Mr. Jorge TAGLE, Trabajo para un Hermano Foundation Mr. Jorge TAGLE, Trabajo para un Hermano Foundation Mr. Andrés SANHUEZA, Association for the Development of the Arauco Province Mr. Andrés SANHUEZA, Association for the Development of the Arauco Province (CORPARAUCO), Social Programme (CORPARAUCO), Social Programme Mr. Tomás VARELA, La Araucana Financial Indemnity Fund Mr. Tomás VARELA, La Araucana Financial Indemnity Fund

HIGHER EDUCATION IN REGIONAL AND CITY DEVELOPMENT: THE BÍO BÍO REGION, CHILE –© OECD 2010 HIGHER EDUCATION IN REGIONAL AND CITY DEVELOPMENT: THE BÍO BÍO REGION, CHILE –© OECD 2010 PROGRAMME OF THE REVIEW VISIT – 161 PROGRAMME OF THE REVIEW VISIT – 161

14:00-15:30 Universidad Católica de la Santísima Concepción (UCSC) 14:00-15:30 Universidad Católica de la Santísima Concepción (UCSC) Dr. Juan Miguel CANCINO CANCINO, President Dr. Juan Miguel CANCINO CANCINO, President Mr. Jorge PLAZA DE LOS REYES ZAPATA, Vice-President Mr. Jorge PLAZA DE LOS REYES ZAPATA, Vice-President Mr. Alberto LOOSLI WEASON, Vice-President for Social Affairs Mr. Alberto LOOSLI WEASON, Vice-President for Social Affairs Mr. Jorge GALLEGUILLOS PIZARRO, Vice-President for Administration Mr. Jorge GALLEGUILLOS PIZARRO, Vice-President for Administration Pbr. Luis RIFO FELIÚ, Vice Grand Chancellor Pbr. Luis RIFO FELIÚ, Vice Grand Chancellor Ms. Teresa LOBOS DEL FIERRO, Provost Ms. Teresa LOBOS DEL FIERRO, Provost

16:00-17:00 UCSC - Deans and Directors 16:00-17:00 UCSC - Deans and Directors Mr. Hubert MENNICKENT, Dean, Faculty of Engineering Mr. Hubert MENNICKENT, Dean, Faculty of Engineering Mr. Marcelo LAGOS, Dean, Faculty of Medicine Mr. Marcelo LAGOS, Dean, Faculty of Medicine Mr. Hernán VARELA, Dean, Faculty of Law Mr. Hernán VARELA, Dean, Faculty of Law Ms. Carolina AGUIRRE, Dean, Faculty of Sciences Ms. Carolina AGUIRRE, Dean, Faculty of Sciences Mr. Jaime CONSTENLA, Dean, Faculty of Education Mr. Jaime CONSTENLA, Dean, Faculty of Education Mr. Iván VALENZUELA, Dean, Faculty of Economics Mr. Iván VALENZUELA, Dean, Faculty of Economics Mr. Mario URZÚA, Dean, Faculty of Social Sc. and Communication Mr. Mario URZÚA, Dean, Faculty of Social Sc. and Communication Mr. Juan Carlos INOSTROZA, Director of the Theology Institute Mr. Juan Carlos INOSTROZA, Director of the Theology Institute Mr. Marcelo BASSALETTI, Director of the Technological Institute Mr. Marcelo BASSALETTI, Director of the Technological Institute Mr. Osman ANDRADE, Director for Student Affairs Mr. Osman ANDRADE, Director for Student Affairs

17:00-19:00 Thematic meeting on Fishery Cluster 17:00-19:00 Thematic meeting on Fishery Cluster Mr. Christian DÍAZ, Researcher, UCSC Mr. Christian DÍAZ, Researcher, UCSC Mr. Pablo VENEGAS, Researcher, UCSC Mr. Pablo VENEGAS, Researcher, UCSC Mr. Javier CHONG, Researcher, UCSC Mr. Javier CHONG, Researcher, UCSC Mr. Dagoberto ARCOS, Director, Regional Centre for Environmental Education (CREA) Mr. Dagoberto ARCOS, Director, Regional Centre for Environmental Education (CREA) UCSC UCSC Mr. Álvaro JORQUERA, Fishery Coordinator, DUOC Mr. Álvaro JORQUERA, Fishery Coordinator, DUOC Mr. Marcos CHÁVEZ, Environment Coordinator, DUOC Mr. Marcos CHÁVEZ, Environment Coordinator, DUOC Mr. Jorge FRÍAS, Research Director, San Sebastián University Mr. Jorge FRÍAS, Research Director, San Sebastián University Ms. Irene LEPEZ, Researcher, UDEC Ms. Irene LEPEZ, Researcher, UDEC Mr. Alfredo KLEMPAU, Researcher, UDEC Mr. Alfredo KLEMPAU, Researcher, UDEC Ms. Mariela GUTIÉRREZ, Researcher, UDEC Ms. Mariela GUTIÉRREZ, Researcher, UDEC Mr. Ariel VALENZUELA, Researcher, UDEC Mr. Ariel VALENZUELA, Researcher, UDEC Mr. Hugo ARANCIBIA, Researcher, UDEC Mr. Hugo ARANCIBIA, Researcher, UDEC Mr. Renato QUIÑÓNES, Researcher, UDEC Mr. Renato QUIÑÓNES, Researcher, UDEC Mr. Franklin CARRASCO, Dean, Faculty of Oceanographic Sciences Mr. Franklin CARRASCO, Dean, Faculty of Oceanographic Sciences Mr. Rafael SOLAR, Federico Santa María Technical University Mr. Rafael SOLAR, Federico Santa María Technical University Mr. Jorge TORO, Regional Coordinator of Fisheries Mr. Jorge TORO, Regional Coordinator of Fisheries Mr. Sigifredo SHEUERMANN , Regional Coordinator of Fisheries Mr. Sigifredo SHEUERMANN , Regional Coordinator of Fisheries Mr. Hugo ARANCIBIA, President, Local self-employed fisherman federation Mr. Hugo ARANCIBIA, President, Local self-employed fisherman federation Mr. Néstor LLOYD, National Shellfish Exporters Association Mr. Néstor LLOYD, National Shellfish Exporters Association Mr. Rodrigo SARQUIZ, Fish Industry Association Mr. Rodrigo SARQUIZ, Fish Industry Association Mr. Sergio MORA, Fishing Development Institute Mr. Sergio MORA, Fishing Development Institute

Friday 21 August Friday 21 August 09:00-13:00 OECD-World Bank Review Team internal meeting 09:00-13:00 OECD-World Bank Review Team internal meeting

15:00-17:00 Feedback session to the Regional Steering Committee 15:00-17:00 Feedback session to the Regional Steering Committee

17:10-17:30 Interviews with local media 17:10-17:30 Interviews with local media

HIGHER EDUCATION IN REGIONAL AND CITY DEVELOPMENT: THE BÍO BÍO REGION, CHILE – © OECD 2010 HIGHER EDUCATION IN REGIONAL AND CITY DEVELOPMENT: THE BÍO BÍO REGION, CHILE – © OECD 2010 Higher Education in Regional and City Development City and in Regional Education Higher

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