Lauritz B. Holm-Nielsen, Rector World Bank Knowledge Economy Forum, Prague, March 29, 2006 THE UNIVERSITY OF AARHUS THE TRIPLE HELIX Universities in the NIS - the Latin American example

Lauritz B. Holm-Nielsen, Rector World Bank Knowledge Economy Forum, Prague, March 29, 2006 THE UNIVERSITY OF AARHUS  Knowledge is a critical determinant of economic growth and quality of life  Knowledge is transformed into goods and services through a country’s NIS  Trained human brains are the most effective movers of knowledge  Good science is international and often interdisciplinary

Lauritz B. Holm-Nielsen, Rector World Bank Knowledge Economy Forum, Prague, March 29, 2006 THE UNIVERSITY OF AARHUS  Challenge  NIS  Response  Triple helix

Lauritz B. Holm-Nielsen, Rector World Bank Knowledge Economy Forum, Prague, March 29, 2006 THE UNIVERSITY OF AARHUS The challenge

Lauritz B. Holm-Nielsen, Rector World Bank Knowledge Economy Forum, Prague, March 29, 2006 THE UNIVERSITY OF AARHUS Composition of the global market for goods

Lauritz B. Holm-Nielsen, Rector World Bank Knowledge Economy Forum, Prague, March 29, 2006 THE UNIVERSITY OF AARHUS Global hubs of technological innovation Source: Hillner (2000) and UNDP (2001)

Lauritz B. Holm-Nielsen, Rector World Bank Knowledge Economy Forum, Prague, March 29, 2006 THE UNIVERSITY OF AARHUS Increased demand for knowledge Source: Blom; Holm-Nielsen and Verner (2001)

Lauritz B. Holm-Nielsen, Rector World Bank Knowledge Economy Forum, Prague, March 29, 2006 THE UNIVERSITY OF AARHUS Some European countries, ad especially the Caribbean and Africa, face significant emigration rates of their elites (sometimes exceeding 50%) Source: OECD, Trends in International Migrations 2004

Lauritz B. Holm-Nielsen, Rector World Bank Knowledge Economy Forum, Prague, March 29, 2006 THE UNIVERSITY OF AARHUS Scientists and engineers in R&D (per million people) Source: World Development Indicators

Lauritz B. Holm-Nielsen, Rector World Bank Knowledge Economy Forum, Prague, March 29, 2006 THE UNIVERSITY OF AARHUS Source: RICYT (2003) and OCDE (2002) OECD Investment in R&D in percent of GDP Gross Domestic Expenditure on R&D as % of GDP Peru Colombia Venezuela Mexico Argentina Chile Brazil

Lauritz B. Holm-Nielsen, Rector World Bank Knowledge Economy Forum, Prague, March 29, 2006 THE UNIVERSITY OF AARHUS Low level of R&D in private sector Investment in R&D by sector in LAC (2000) Investment in R&D by sector in OECD (2000) Source: RICYT (2003) and OCDE (2002)

Lauritz B. Holm-Nielsen, Rector World Bank Knowledge Economy Forum, Prague, March 29, 2006 THE UNIVERSITY OF AARHUS An OECD country comparator R&D finance in Denmark,

Lauritz B. Holm-Nielsen, Rector World Bank Knowledge Economy Forum, Prague, March 29, 2006 THE UNIVERSITY OF AARHUS Knowledge transfer between research entities and companies Inward orientation of researchers Lack of incentives to commercialize research and solve real-life problems Red tape impeding partnerships and cross-sectoral mobility Source: IMD World Competitiveness Yearbook 2004

Lauritz B. Holm-Nielsen, Rector World Bank Knowledge Economy Forum, Prague, March 29, 2006 THE UNIVERSITY OF AARHUS NIS National Innovation System

Lauritz B. Holm-Nielsen, Rector World Bank Knowledge Economy Forum, Prague, March 29, 2006 THE UNIVERSITY OF AARHUS Private Universities Public Universities Technology institutes Private Sector International networks R&D Institutes National Innovation System Government Ministry of Education Ministry of Environment Ministry of Health Ministry of Defense Meeting the challenge: Strengthen National Innovation Systems Challenges in LAC-NIS: Insufficient coherence in sector policies Low stock of researchers Low R&D expenditure Limited private sector involvement R&D Deficient participation international networks Low quality of research Insufficient access to risk capital IPR Venture capital

Lauritz B. Holm-Nielsen, Rector World Bank Knowledge Economy Forum, Prague, March 29, 2006 THE UNIVERSITY OF AARHUS … but tensions in university-industry relationship  Diversity of missions  Public goods - private property  Spining off human capital - developing human resources  Individual knowledge - corporate know how

Lauritz B. Holm-Nielsen, Rector World Bank Knowledge Economy Forum, Prague, March 29, 2006 THE UNIVERSITY OF AARHUS The policy response in LAC

Lauritz B. Holm-Nielsen, Rector World Bank Knowledge Economy Forum, Prague, March 29, 2006 THE UNIVERSITY OF AARHUS Triple helix universities as drivers for change, strengthen cohesion in the helix A -- teaching B -- research C -- knowledge transfer

Lauritz B. Holm-Nielsen, Rector World Bank Knowledge Economy Forum, Prague, March 29, 2006 THE UNIVERSITY OF AARHUS Reorganizing HE in Latin American NIS´ Towards a market for HE and R&D, stimulating demand and supply  More effective financing of study programs (A)  More competition for increased R&D funding (B)  More direct contracting for services (C) Prerequisite to: strengthen institutions (universities and laboratories); increase economic and legal space for leadership; create strategic management capacity of universities

Lauritz B. Holm-Nielsen, Rector World Bank Knowledge Economy Forum, Prague, March 29, 2006 THE UNIVERSITY OF AARHUS University governance Decentralization, autonomy with accountability  Form strategic management  Build competitive funding  Managing system linkages  Promoting human networks

Lauritz B. Holm-Nielsen, Rector World Bank Knowledge Economy Forum, Prague, March 29, 2006 THE UNIVERSITY OF AARHUS New funding schemes  Funding for teaching follows productivity (quality and quantity) via formulas or performance contracts  Balancing public funding for research, between direct and competitive including overhead  Contracts to respond to Government demand  Contracts to support knowledge transfer  Grants and contracts should be large and multi year.

Lauritz B. Holm-Nielsen, Rector World Bank Knowledge Economy Forum, Prague, March 29, 2006 THE UNIVERSITY OF AARHUS Capitalization of knowledge promoting university-industry linkages  Informal contacts and contract research  Mobility of human capital, active networks  Research clusters, science parks, and public-private research partnerships  Intellectual property and spinn-off companies  Financing proof of concept and venture capital

Lauritz B. Holm-Nielsen, Rector World Bank Knowledge Economy Forum, Prague, March 29, 2006 THE UNIVERSITY OF AARHUS The triple helix at work

Lauritz B. Holm-Nielsen, Rector World Bank Knowledge Economy Forum, Prague, March 29, 2006 THE UNIVERSITY OF AARHUS The case of Chile shows… if university culture change  rapid expansion of formation of advanced human capital is possible (A)  right conditions stimulates repatriation of highly skilled people - reversing brain drain (A, B)  targetted funding structures for the NIS stimulates conditions for catching-up (B)  strategic linkages enables the private sector to turn science into innovation and business(C)

Lauritz B. Holm-Nielsen, Rector World Bank Knowledge Economy Forum, Prague, March 29, 2006 THE UNIVERSITY OF AARHUS Thanks for the invitation