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O-066University-industry cooperation experiences in Latin America. An analysisfrom the obstacles perspectiveAntonio Hidalgo, Vicente Lopez, Universidad Politécnica De Madrid, Spain1. IntroductionThis study, as part of the FP7 INCONET-EULARINET Project, tries to identify the issues of innovation and technology transferthat characterizes the cooperation between university and industry in Latin American Countries (LAC) as a first step in determiningthe EU-LAC cooperation in this field. The study discusses trends and challenges within LAC university-industry relationshipsand although is not intended to provide an exhaustive analysis, focuses on some of the key issues that characterize theserelationships and the main obstacles which have to be overcome to improve this cooperation.2. The state-of-the-art of university-industry collaboration in Latin AmericaCooperation in R&D between universities, research centers and firms is a reality in Latin American countries. But, to whatextent science-industry links are relevant? Is there a set of structural characteristics determining the probability of Latin Americanfirms to engage in R&D with universities? Is there a difference between these factors and those affecting science-industry linksin more advanced economies like EU countries? The present study tries to find the answer to these questions.Postgraduate education and research do not belong to the core activities of many universities in LAC. Nevertheless, universitiesare changing rules to facilitate a closer relationship with industry, but available data does not show changes in the long standingprivate under-investment on R&D. LA firms have only imperfect knowledge of relevant technological options, and researchdemonstrates that they generally look for new solutions around their existing competencies. In Latin American countries, thecircle of competencies is likely to be further from the knowledge frontier and therefore the pool of considered options may belimited. Moreover, the possibility of introducing new products and processes depends on R&D capabilities and skills that areoften not there.According to the World Bank, the perception of the main stakeholders in each country related to university-industry collaborationis 2,84 in a scale of 7 (Fig. 1). A low level of university-industry collaboration is also evident in firm-level innovation surveys.3. Research focusThe research focus relies on the determination of the main obstacles which have to be overcome to improve the universityindustrycooperation in LAC.4. MethodologyThe first step was to design the information needs with the participation of relevant experts of the EULARINET Project from LACand European participant countries. This information was structured according the structural framework of cooperation, thesupport cooperation mechanisms, the international dimension of the cooperation, and the obstacles that hindering the process.The second step was to collect the required information. The information gathered was based on secondary sources, taking intoconsideration the existing reports and studies about this matter in each country. Wanting to know if there were information gapsrelating secondary sources, a gap matrix was developed for this proposal in order to identify non-existence information, takingthe necessary steps to overcome the information gap. Four meetings of the EULARINET Working Group were organized inMexico, Brussels, Buenos Aires and Lisbon in order to implement and check the methodology.5. FindingsAmong the main obstacles to closer ties among universities and firms in LAC we have found:" Fragmented innovation policy and dispersion of instruments for technological cooperation." Firms lack a technologically dynamic domestic environment that stimulates their willingness to interact, and their search forinnovation through external sources." In general, size, capacity to appropriate returns form innovation), internal capacities in R&D (i.e. absorptive capacity) and theimportance assigned to costs and risks as obstacles for innovation are among the factors that result significant in determiningthe probability of firms to be engaged in R&D cooperation with the scientific sector." The lack of private sector confidence in the quality and the relevance of academic research." There is no full consciousness among the businessmen on the importance of innovation as a foundation of strategiccompetitiveness, and therefore of the convenience of working with the university." The ignorance of the commercial potentiality of the technologies generated by universities." R&D is not a priority for many universities, which in general suffer from budget and human resources constraints. The lack ofmotivation for the exchange of results, due to several factors such as the delay in publication of research results, the loss ofconfidentiality, the absence of innovation capabilities in the productive sector, financial and institutional barriers.6. ImplicationsStrengthening university-industry collaboration in Latin America is a matter of building trust, improving communication andstrengthening incentives. Stimulating excellence when funding research and, notably, changing incentives at the level of theindividual researcher would go a long way in addressing this challenge. With few exceptions, universities and research agenciesin Latin America have unrealized potential for changing personnel policies and practices to encourage faculty members tocollaborate with external partners and pursue their entrepreneurial interests.Madrid, October 20, 21 & 22 - 2010154

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