Research Policy 30 (2001) 1221–1234

Changing knowledge production and

Latin American universities夽
Rodrigo Arocena a , Judith Sutz b,∗
a Department of Science and Development,

Faculty of Sciences, Universidad de la República, Montevideo, Uruguay

b Academic Department, University Research Council, Universidad de la República,
Montevideo, Uruguay
Received 1 November 1999; received in revised form 25 July 2000; accepted 18 October 2000

Abstract
This article examines some of the main issues affecting knowledge production in Latin America. The focus is on universities,
because they are the principal regional producers of knowledge up to now. The paper compares changes and continuities
concerning academic values and attitudes, governmental policies, university–industry relations and endogenous knowledge
generation, analysing also the connection between the ‘structurally unachieved’ National Systems of Innovation (NSI) in
Latin America and the social ‘loneliness’ of universities. The article finishes by sketching alternative scenarios for the
future interaction between knowledge generation and university transformation. © 2001 Elsevier Science B.V. All rights
reserved.
Keywords: Latin American universities; Research policies; Knowledge production; University–industry relations; National Systems of
Innovation

1. Introduction importance of research contracts with industry and

The conditions of knowledge production are chang-
ing everywhere. The evidence of change is manifold:
it includes the steady stagnation of the public budget
of universities, the rising of the ‘call for projects’
modality as a main source of support, the growing
夽 This paper is based on the oral presentation made at the work-
shop ‘Current Issues in Science and Technology Policy’, organised
at SPRU by Aldo Geuna and Jacky Senker, 29 June, 1999. The
authors thank the organisers for the opportunity for sound inter-
actions provided by the workshop. They also want to thank the
useful comments made by anonymous referees.
∗ Corresponding author.
E-mail address: roar@fcien.edu.uy (R. Arocena).
the ‘agonising’ processes of evaluation of research
proposals (Ziman, 1994). These evidences are not
geographically concentrated (Senker, 1999): it is easy
to find important similarities in the recent literature
on these issues regardless of their origin, be it Europe,
the United States or Latin America. The concern
about the new ‘shortermism’ brought about by the
quest for rapid applicability of research results, and
the concomitant possibility of putting universities too
directly at the service of private interests, can also be
found almost everywhere. However, it is not sensible
to conclude that the conditions of knowledge pro-
duction will probably converge everywhere, even if
the present state of affairs seems to indicate a certain

0048-7333/01/$ – see front matter © 2001 Elsevier Science B.V. All rights reserved.
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1222 R. Arocena, J. Sutz / Research Policy 30 (2001) 1221–1234
pattern towards homogenisation. 1 Universities, up
to now the main place of knowledge production, are
in many senses universal institutions, so it is not so
striking that some patterns of change could rapidly
acquire an air de famille regardless the landscape
we choose to consider. Important differences in the
past and in the present, both in the context in which
universities evolve and in the universities themselves,
can lead, however, to different outcomes.
This paper deals with the adaptation of Latin Ameri-
can universities to the new conditions. To assess the
outcomes of this adaptation, we look into what is
changing and what is not changing in the main issues
affecting the production of knowledge. The outline of
the paper is the following:
1 Patel and Pavitt, referring in a recent paper to 400 firms of the
Fortune 500 list, argue that: ‘less than 1% of these firms’ innovative
activities are located outside the ‘triad’ countries, showing that the
process of internationalisation of technological activities can at best
be described as ‘triadisation’ rather than ‘globalisation’ (Patel and
Pavitt, 1999, p. 9). The idea of a world where by a strange process
of osmosis the relations between knowledge and the economy will
tend to converge asymptotically to the strength they have already
achieved in the more industrialised countries does not seem to
be supported by empirical data. This argument was forcefully
put forth by Freeman: ‘the countries and sub-continents making
the fastest progress have actually varied enormously both in the
19th and the 20th century. Uneven development is a much more
accurate characterisation of growth than convergence’ (Freeman,
1999, p. 127).
Latin America is a highly differentiated continent.
Many reasons explain the differences between Latin
American countries, size and demography being per-
haps the most evident but by no means the only ones.
Those countries share, however, many features and
trends, so it is reasonable to refer to them, beyond
geography, as ‘Latin American’. The issues tackled in
the paper also have important differences in different
Latin American countries. Again, however, com-
mon general patterns can be discerned for the whole
region regarding changes in knowledge production
and the universities. The paper refers to these general
patterns, indicating, when suitable, the main devia-
tions from them.
2. Changes affecting the production
of knowledge
2.1. The ‘new contract’ between the state
and public universities
Public universities have lost their quasi-monopoly
in terms of assuring the social reproduction of the
elite through higher education: both going abroad and
 R. Arocena, J. Sutz / Research Policy 30 (2001) 1221–1234
studying in private institutions are nowadays alterna-
tive routes. 2
This logic of social reproduction acted as an unspo-
ken trade-off between the state and public universities.
Once this logic is gone, a strong push towards a new
and explicit trade-off appears. The social usefulness
of public universities is no more taken for granted and
so the benevolent mode of financing higher education
looses legitimisation. The budgetary support for pub-
lic universities was traditionally based on the regular
increase of the previous period’s resource assignation.
This ‘non accountable’ model, in which resources
were not related to any type of evaluation or to the
fulfilment of any government orientation, lost ground
in recent years: ‘in fact, it is rare to find a Minister of
Education, not to speak of a Minister of Finance! who
speaks enthusiastically about higher education and
who is willing to,. . . , push for an increase or even
for maintaining the same level of public resources
devoted to it’ (Brunner, 1991, p. 17, our translation).
The core of the new explicit trade-off relates to
budgetary decisions, which depend on the willingness
of public universities to play a more direct role in
the pursuit of economic growth and to exert a tighter
control over academic performance. The strategy
followed to implement these changes combines stag-
nant budgets with competitive funds, the latter are of
growing importance given that the former are unable
to cope with the growth of the student population or
with the requirements of research (Waissbluth, 1990).
These competitive funds are often provided by inter-
national organisations that have their own norms, to
which universities must adapt.
The relative stagnation of the budgets of public
universities during the 1980s can be evaluated by
means of several indicators given as follows.
1. Between 1980 and 1990 the public budget for hig-
her education in Latin America grew 35.7%, while
the number of university students grew 50.4% and
faculty grew 61.9% (Dı́az Barriga, 1997, p. 683).
2 The rapid growth of higher education private institutions is
a quite recent phenomenon in Latin America. Only 3.7% of all
private universities operating in 1995 existed before 1950, while
the equivalent figure for public universities amounted to 31.6%.
In spite of that, the total number of private universities surpassed
the number of public ones during the 1990s (based on Garcı́a
Guadilla, 1996).
1223
2. The current public expenditure by higher education
student as a rate of the GDP per capita diminished
more or less severely in almost all Latin Ameri-
can countries, with the sound exception of Brazil
(Brunner, 1994, p. 75). 3
3. The figures are particularly striking for two coun-
tries, Argentina and Chile. Between 1980 and 1990
the public budget for higher education in Argentina
grew 41.9%, university students grew 119.2% and
faculty grew 93.7%, the figures for Chile are −37.2,
125.0 and −4.0%, respectively.
On the other hand, the efforts to obtain more
diversified financial resources for higher education are
not showing rapid results, Chile being an exception.
By the mid-1990s, universities in Argentina, Colom-
bia, Costa Rica, Dominican Republic, Ecuador, El
Salvador and Mexico received more than 90% of their
budgets from their governments (Dı́az Barriga, 1997).
2.2. Changes in university discourse
Latin American public universities used to assume
they were a sort of ‘critical consciousness’ in their
societies, a perception that arises from the explicit
commitment to social development in which they
were engaged since the beginning of the century. That
role generated strong confrontations between many
public universities and the ruling elite, both economic
3 The ‘Brazilian exception’ is also recognisable in the following
figures: the public budget for higher education in Brazil grew
227.9% between 1980 and 1990, while university students grew
9.2% and faculty grew 19.9% (Dı́az Barriga, 1997, p. 685). Brazil
has an extreme ‘elite model’ of higher education, and particularly
of public higher education. Public universities are extremely severe
in their selection process, and usually the only students who qualify
come from the best institutions preparing for the pre-university
examinations. Those institutions are usually very expensive, and
so the paradoxical situation arises that, in order to access the free
of charge public higher education, you must be able to expend fair
amounts of money. Another remarkable feature of the Brazilian
university system is that the proportion of students in the system
almost did not change in the last 30 years, levelling at around 11%,
one of the lowest figures in Latin America. One of the reasons
why the public expenditure in higher education grows while the
number of students remains stable is related to the great effort
Brazil is making at the postgraduate level. Another reason is the
comparatively higher salaries earned by faculty in Brazilian public
universities in relation to the rest of the region (Schwartzman,
1988, quoted in Brunner, 1990, p. 67).
1224 R. Arocena, J. Sutz / Research Policy 30 (2001) 1221–1234
and political, particularly in the decades of military
rule that affected so many Latin American countries
during this century. The dictatorships of the 1960s
and the 1970s in the Southern Cone identified public
universities as subversive enemies. As a result, the
massive firing of faculty and the virtual expulsion
from their countries gave rise to the ‘Latin American
academic Diaspora’, a process that in some cases
expelled the majority of researchers in whole areas
of knowledge. But even under democratic rule there
were heavy conflicts: only 15 years ago, Mexican
public universities were blamed by the collective or-
ganisation of Mexican entrepreneurs for encouraging
‘relativism, materialism, scorn towards tradition and
vicious behaviour’ (Luna, 1997, p. 117).
University discourse has changed in recent times
towards a much more ‘peaceful co-existence’ mood.
Many reasons may be invoked to explain this new path.
Students and faculty participation in the democrati-
sation processes in many Latin American countries
was an important mean to gain wide public recogni-
tion and also to knit an unspoken closeness to other
actors — political as well as entrepreneurial — with
which ideological antagonisms were quite strong in
the past. This new wave of more fluid relationships
between university, industry and government resulted
also from the change in the university perception of
its role in society: less emphasis on social criticism
and more legitimisation for the specialised participa-
tion in knowledge accumulation and in the solution of
national problems.
In the 1960s and the 1970s, great social transforma-
tions were expected to take place in Latin America,
when those expectations vanished, public universities
were obliged to re-think their social commitment. No
single idea emerged, at least nothing of the sort of
the ‘Latin American identity’ that public universities
shared some decades ago, issued from the Univer-
sity Reform Movement (Arocena, 1998; Arocena and
Sutz, 2000a). But a common pattern is nevertheless
emerging: whatever the form of social commitment,
it is more ‘university-specific’, less direct and clear
than before, more mediated by the ‘knowledge effect’
of academic practice. Public universities are willing
to play their role from ‘within the system’, and even
if this is not a straightforward pattern, it signals an
important change in the conditions for knowledge
production.
One of the indicators of the change of discourse
and also of culture is the almost across the board
acceptance of the legitimacy of university–industry
relations, commanded by industry demand and im-
plying paid services to the university as such and also
to individual university researchers. This pattern was
not at all clearly legitimated 20 years ago and the
change has to do not only with necessity but also with
virtue: helping production to use knowledge more
intensively is increasingly seen as a developmental
goal that fits well with the Latin American university
spirit of social commitment. 4
2.3. The productive pattern
After the Latin American ‘lost decade’, as the
1980s were denominated due to the stagnation of
economic performance and social figures, a strong
economic transformation was attempted in the 1990s.
One of the main features of this transformation was
the wide opening of the economies. The total and
abrupt exposure to international competition drove
the whole productive system towards a process of
‘de-industrialisation’ and to an insertion of Latin
America in world trade that is mainly based on ex-
porting commodities with relatively low added value.
The evolution of the Latin American index of tech-
nological specialisation — an indication of the partic-
ipation of products with high technological content in
the exports structure — shows a generalised situation
of stagnation or decline, with the clear exception of
Mexico (Table 1).
To understand Mexican differentiation in terms of
the technological content of its exports, it is necessary
to take into account both the proximity of Mexico
to the USA and the heavy presence of foreign multi-
nationals in almost all advanced sectors of Mexican
industry (Lall, 1995, p. 153). From an internal point
of view, though, the picture is not as good as the
4 The change of university discourse and culture has not been
the same in all disciplines. In engineering, for instance, the dis-
tance between academic research and professional practice was
quite wide and so the legitimisation of university research directly
commanded by private firms was for some time in hot discus-
sion. The situation of agricultural research was different, given the
spread character of public good enjoyed by this type of research
and the fact that interacting with producers has been always part
of academic research practices.
 R. Arocena, J. Sutz / Research Policy 30 (2001) 1221–1234
Table 1
Index of technological specialisation for countries of Latin America and the Caribbean, 1977–1994a
Argentina Brazil Caribbean countries
1977 0.12 0.22 0.09
1994 0.09 0.22 0.09
a Source: based on Alcorta and Peres, 1996: 21.
figures suggest, given the long standing dependency
of imported capital goods, the strong reliance on
inflows of foreign know-how, licences and expertise,
and the lack of investment in domestic R and D.
These features, ‘by holding back the development of
deeper capabilities, have retarded further diversifica-
tion, development and diffusion (of new technologies)
and has also restricted the ability of Mexican industry
to move autonomously into technologically dynamic
or sophisticated industries’ (Lall, 1995, p. 154). The
cases of Argentina and Brazil show similar charac-
teristics (Katz and Bercovich, 1993; Coutinho et al.,
1997; Cassiolato and Lastres, 1997).
If we look at the whole Latin American industrial
structure, the picture shows a long trend tendency in
which the industrial activities related with the trans-
formation of natural resources take a clear lead, while
those more intensive in engineering and technologi-
cal knowledge lose weight (Katz, 2000). The current
pattern suggests that the structural difficulties to relate
knowledge production and economic development in
the last decades will be difficult to overcome in the
near future.
2.4. The privatisation — ‘foreignisation’ process
undergone by public companies
Under the current ‘model’ of economic governance
applied in Latin America, privatisation of public com-
panies is a cornerstone. With the exception of Uruguay
— in which a quite unusual procedure of public con-
sultation rejected in the early 1990s the possibility of
privatising public firms — almost all Latin American
countries have undertaken massive privatisation pro-
cesses during the last decade. The reason why this
fact relates with changes in the context of knowl-
edge production has to do with the role that big and
sophisticated companies like the public ones can play
in mobilising endogenous research capabilities, and
more so when the local industrial milieu is far from
1225
Central America Chile Colombia Mexico Peru Venezuela
0.09 0.01 0.03 0.50 0.02 0.03
0.06 0.01 0.01 1.63 0.02 0.02
being dynamic. Even if this mobilisation has not been
strong in Latin America, at least some of its mani-
festations were important. In the Uruguayan case, for
instance, the first commuting system for data com-
munication was designed and built in the late 1970s
by two small national electronic firms which won a
public international bid by the state owned telecom-
munications company. The learning opportunity that
this project allowed would have been quite impos-
sible without the demand of a public company, the
same can be said in other Latin American countries
for telecommunications, oil prospecting, production
and transmission of electric power and exploitation
and transformation of mineral resources.
The privatisation of public companies in Latin
America has been almost always done through for-
eign companies: that is why the term ‘foreignisation’
is proposed. The probability that the private or even
public international companies that buy the national
public ones would rely on local knowledge to solve
some of their more difficult problems is rather low,
and this introduces a change in the local conditions
for knowledge production. Public procurement has
always been an important and strongly debated tool to
foster industrial innovation in developed countries. It
seems that this tool has not lost its importance nowa-
days, as it is shown by the Targeted Socio–Economic
Research Programme of the European Union. 5 The
rejection of state participation in productive activities
in Latin America is based on arguments of inefficien-
cies, corruption trends, the high ‘cost of the state’
and the plain need of getting fresh money. The Latin
American States have seldom been acknowledged as
5 The Department of Technology and Social Change, Linkoping
University, carries on the concrete project on Public Technology
Procurement as a Policy Instrument, as part of a bigger project on
Innovation Systems and European Integration, oriented by Charles
Edquist. A theoretical framework of public procurement is provided
in Edquist and Hommen, 1998.
1226 R. Arocena, J. Sutz / Research Policy 30 (2001) 1221–1234
a source of specific innovation demands, nevertheless,
the reasons favouring public procurement that are
given in developed countries are also valid and even
more important in Latin America, due to the weak-
ness of the entrepreneurial local milieu. Summing
up: the ‘foreignisation’ trend of the Latin American
process of privatisation weakens the potential internal
demand for knowledge and the potential opportuni-
ties for learning to cope with complex problems. This
is why it constitutes one of the changes affecting the
conditions for knowledge production in the region.
2.5. The university institutional building of
relations with productive sectors
All over Latin America universities have built their
own organisations to foster and manage their relations
with firms in a much more institutionalised way than
before. This is quite a recent trend, developed mostly
in the last two decades. Once the relationships with
industry were defined as strategically important, the
main problems in need of new approaches were those
related to the handling of contractual issues. Typically,
new regulations were needed if professors were to
charge for their ‘outside’ work, as faculty and not as
private citizens. At the same time, some agreements
had to be reached regarding the limits and the scope
of work done for third parties. In almost all cases, one
of the big problems to foster businesslike relationships
with the external world was the inadequacy of the
university accountancy system. Slow, heavy, subjected
to the generic type of controls of the public system,
it hampered the reception of external money and the
spending of it according to the timetable established
in the contracts with private firms.
All this called for new organisations and for the
development of new specialists within the university.
Some of these new organisations were placed inside
the universities, typically the offices for technology
transfer or technology assessment. Others were placed
outside the university and were ruled by ‘private law’,
in an attempt to gain efficiency in dealing with the
contractual and financial relations with external clients
(Lovera de Sola, 1995). A whole set of new areas flour-
ished under the common label of ‘technology transfer’.
This new institutionalisation has developed, though,
more as a way to prepare the university for the
times to come than as an answer to current demands
for more formalised university–industry relations,
mainly because these are not very important. Besides,
these new institutions are not well prepared to make
‘extensionism’, that is, to let the world outside the
university know about what the university is able to
produce and to take actions to promote the effective
use of the university’s capabilities. Instead, more often
than not the new offices mainly wait for the clients to
appear, resulting in institutional sub-utilisation. How-
ever, the university–industry relation landscape shows
noticeable changes if compared with the situation
some decades ago. These relations are more frequent
and involve more disciplines than before. An impor-
tant body of literature has been developed in Latin
America regarding this issue (CINDA, 1990; Sutz,
1994; Vessuri, 1995; Hein et al., 1996; Casas and
Luna, 1998; IBICT, 1998). It shows a remarkable con-
vergence of ‘micro-strengths’ of university–industry
relations across sectors and countries and, at the same
time, a ‘macro-weakness’ of such relations, given
the almost marginal use that industry makes of the
university’s knowledge production capabilities (Sutz,
2000). 6
Hand in hand with the new institutionalisation came
the issues of intellectual property rights. It is difficult
to state to what extent this issue was a true problem that
needed to be solved once the contractual relationships
between universities and firms became more common,
or if it was a reflection of the current trends in the cen-
tral countries, particularly in the United States. The
structural conditions under which university property
rights were established in this country, particularly the
1980 Bayh-Dole Act, were very different from those
prevailing in Latin America. There, ‘the economic
growth under conditions of ‘privatisation of science’
(Dasgupta and David, 1988, p. 58) can be regarded as a
fair description of the current trend, economic growth
in Latin America, as we have seen, has not been usu-
ally based on its own produced science. 7 The wave to-
wards the establishment of intellectual property rights
in USA universities has had noticeable impacts on
the number of patents owned by universities and also
6 A way to synthesise the mixed features of this issue is the title
of Sandra Brisolla’s chapter on a recent Brazilian book on the
subject: ‘University–Industry relations: how would they be if they
were’ (our translation) (Brisolla, 1998).
7 An anonymous referee suggested this remark and reference.
 R. Arocena, J. Sutz / Research Policy 30 (2001) 1221–1234
produced changes in the research trends themselves
(Gelijns et al., 1998). 8 This is not the case in Latin
America. Moreover, there are some difficulties related
to intellectual property rights that are particularly dif-
ficult to tackle in Latin American universities. Two of
them can be briefly mentioned. The first one has to do
with the need to register rights in each country where
the invention is to be protected. Given the scarce in-
dustrial capabilities of Latin American countries, the
most probable way of eventually getting money out of
a university research result is to have it protected in the
industrialised world. However, this implies a big effort,
both organisational and budgetary, that most research
universities are not able to undertake. The second diffi-
culty has to do with the enforcement of the intellectual
property rights. Why patent a research result if, were
someone to violate the intellectual rights, the univer-
sity would not be able to enforce them? This weakness
also arises from organisational and budgetary restric-
tions, even if in this case the former are heavier than
the latter: the monitoring capabilities that are needed
to assure that a patent is not being violated elsewhere
is well beyond those of any office of technology in
almost any Latin American university (Correa, 1996).
Partly because of all that, a good deal of Latin Ameri-
can literature on university–industry relations stresses
the importance of fostering informal relationships bet-
ween people in industry and researchers themselves
as the best way of achieving results.
2.6. Governmental programs to foster
university–industry relations
Not only have universities tried to promote closer
relations with industry: government have recently fos-
tered them too. This is an objective that has been usu-
ally financed by international loans, mainly the science
and technology loans of the Inter-American Develop-
ment Bank (IDB), that have spread all over the region.
The programs developed with the financial assistance
of these loans include all the classic forms of research
support, even if usually restricted to ‘hard’ science
8 One of the most remarkable changes is the possible increase
in the transaction costs of doing science, given that a significant
fraction of university ‘inventions’, including the licensed ones, are
used mainly for further research and do not have direct business
applications. (Gelijns et al., 1998, p. 22).
1227
and technology disciplines, they include, particularly,
some special plans devoted to encourage joint research
projects between universities and firms.
The impact of this type of programs on the condi-
tions of knowledge production is not easy to assess.
The good results they exhibit — successfully com-
pleted projects — are quite punctual, and it is yet an
open question if, once the loans are gone, a stronger
innovative culture remains in place. Nevertheless, in
countries with a low expenditure on R and D, the sci-
ence and technology loans contracted by governments
with the IDB have been, and probably will continue to
be in the near future, a source of oxygen from which
some parts of the universities can take good advantage.
3. Continuities in the conditions affecting the
production of knowledge
3.1. The low importance given to endogenous
knowledge production and the low involvement of
industry with R and D
One of the most striking weaknesses of Latin Amer-
ican development process during this century was the
fragile involvement with knowledge production and
the low relationship between the knowledge produced
and the economic system.
The most recent figures of R and D spending as
a proportion of GDP in Latin America are well be-
low those of the developed nations, even in the case
of Brazil, with 0.88% in 1994 (Unesco, 1998). The
proportion of public/private money in the structure of
R and D spending is the almost perfect opposite of
the situation prevailing in the developed nations: 80%
public spending and 20% private investment.
This is a quite puzzling continuity, because we are
not talking about a deprived region, neither in terms of
economic resources nor in terms of human resources.
On the other hand, the successful latecomer exam-
ples, so frequently cited in Latin America, include in
all cases a very rapid increase in the proportion of
the GDP devoted to R and D expenditures. The im-
portance of being export oriented is usually the only
feature stressed when invoking these examples, with-
out making any reference to the role of science, tech-
nology and innovation policies in achieving economic
success. It is hard, then, not to think that some kind of
1228 R. Arocena, J. Sutz / Research Policy 30 (2001) 1221–1234

Table 2 3.3. Public universities’ rejection of the

Participation of full-time professors in total faculty and concen- ‘marketisation’ of higher education
tration of postgraduate programmes in public and private Latin
American universities — 1994a
With some recent exception — Chile being the
Full-time professors (%) Total PhD Total master
soundest and Mexico another example, — public
programmes (%) programmes (%)
universities in Latin America are free of charge and
Public universities this feature has resisted the trends towards a more
39.5 87.8 83.6
market-oriented life for universities. During 1999
Private universities Mexico and Chile have witnessed students upheavals
13.2 12.2 16.4
related with tuition rises. Even the President of
a Source: based on Garcı́a Guadilla, 1996: 275 and 279. Mexico participated in the negotiations to settle the
conflict in the huge Universidad Autonoma, after 1
scepticism about the need for endogenous efforts di- year of upheavals. In Argentina, the announcement
rected to knowledge production acts as an underlying of an important cut in the education budget gener-
rationale for such a consistent option. 9 ated, also in 1999, massive public demonstrations
of students and faculty of public universities, that
3.2. Public universities continue to be the main led to a cabinet crisis and the resignation of the
producers of knowledge Education Minister. In the Universidad Central de
Venezuela and other universities, student protests are
frequent.
Even if nowadays public universities are fewer in
There are groups, both of students and faculty in
number than private universities, the former retain the
Latin American public universities, strongly against
majority of the students: 5 years ago public university
the transformation of higher education into an ex-
student population more than doubled that of pri-
plicitly paid service. The rejection of ‘marketisation’
vate ones (Garcı́a Guadilla, 1996, p. 270). Moreover,
goes further than the question of free university ac-
public universities are the main source of knowledge
cess. The whole issue marks a divide between those
production all over the region (Table 2).
who accept the new rules of the game, and consider
Medicine, basic sciences and engineering under-
that universities need to change many of their explicit
graduate courses are concentrated in public universi-
and unspoken rules in order to become an efficient
ties, due mainly to the cost of the required laboratory
player, and those who want to keep university rules
infrastructure. The rapid and important growth of
as far away as possible from market imperatives.
higher education demand in the last decades (‘the
Reformists against conservatives? Opportunists
social assault on education’) generated a private of-
against socially concerned intellectuals? None of
fer mainly in computer-related courses, management,
these dichotomies describe neatly what is happening,
business and sometimes education and humanities
particularly because even those who work internally
studies as well. Thus, not only research on basic sci-
on its behalf do not openly welcome ‘marketisation’.
ences, engineering, medical and agricultural issues
In this sense, even the most ‘market-oriented’ public
continue to be overwhelmingly based in public uni-
university representatives must pay at least some lip
versities: the same is valid for professional training
service to a tradition that remains strong.
in these areas.
9 3.4. The loneliness of the university actor
This kind of scepticism seems also to be supported by foreign
advice, like the following OCDE remark about Mexico: “. . . the
low level of spending in R and D should not be anything worrisome Some critics of the Latin American academic mi-
(. . . ) given the Mexican level of development, the most cost lieu — inside as well as outside the continent —
effective way to adopt the best productive practices continues to have often blamed universities for being elitist and
be, by far, the import of already existent technology and technical
knowledge, as well as the acquisition of capabilities to use said
‘ivorytowerist’, for putting people’s concerns at arms
technologies and to adapt them to local requirements” (OECD, length, for concentrating in self-defined research agen-
1992, p. 168, quoted in Luna, 1997, p. 132, emphasis added). das, briefly, for being highly internationalised and not
 R. Arocena, J. Sutz / Research Policy 30 (2001) 1221–1234
truly Latin American. Their claim is then to drastically
change research concerns.
‘Scientificists’ was a fashionable term in the 1960s
and 1970s, denominating academic fellows that put
internationally competitive research first, regardless of
its relevance for the country. It is obviously true that
scientificists exist. It must be said, though, that inter-
nationally competitive research is something clearly
identifiable while the relevance of a research project
‘for the country’ is something difficult to establish
when there are no concrete actors that are interested
in putting its results to work. ‘Scientificists’ belong to
a well-established international research community,
nothing so clear can be said about the community of
academics worried by the social relevance of their
research.
It is tempting to blame universities when so many
problems which need knowledge in order to be solved
remain untouched, while in the meantime some re-
searchers do not include such type of problems into
their agendas. It should also be acknowledged, how-
ever, that there are few possibilities for universities
to contribute to development with the knowledge
they produce when there are no other actors par-
ticipating in the articulation process. In this sense,
Latin American universities continue to be a lonely
actor regarding knowledge production. The change
of research concerns and, consequently, of research
agendas is difficult to attain when there is no social
and collective action that values knowledge.
4. The ‘structurally unachieved’ building of
National Systems of Innovation
Many of the ‘building blocks’ usually included in
National Systems of Innovations (NSIs) are present in
Latin America, like enterprise incubators, tax incen-
tives for innovation, prizes to innovative firms, organ-
isations devoted to the management of competitive
funds for innovative research projects. On the other
hand, research institutions have a certain tradition,
some scientific communities are well established and
the capabilities for social reproduction of the research
community is growing steadily through the widening
of the post-graduate system. Nevertheless, even if
many of the organisations and the mechanisms put in
place in the NSIs of developed nations are present in
1229
some Latin American countries, the latter do not base
their economic growth on knowledge and innovation.
Moreover, they do not seem to be moving in that
direction, and this is a main cause of the ‘structurally
unachieved’ character of the innovative organisational
fabric. Often, some institutions and mechanism are
missing, like technology extension programs or risk
and seed capital in the case of the financial system,
there is a weak demand for locally developed techno-
logical innovation coming from firms, be they private
or public. Therefore, the institutions designed to pro-
mote innovation miss fundamental prerequisites to
fulfil their mandate.
This situation can be viewed also as the result of a
wide set of contradictory situations and signals. Uni-
versity discourse is changing dramatically regarding
the willingness to be ‘inside the system’, but at the
same time there is a strong resistance to play this game
to the end. Universities are changing rules to facilitate
a closer relationship with industry, but available data
does not show changes in the long standing private
under-investment on R and D. The discourse about
the importance of science, technology and innovation
for economic performance, particularly for exports,
is growing everywhere, and based on that discourse,
governments are changing their relationships with
universities towards models relying much more than
before on demands of explicit accountability. But the
fact is, as we have seen, that the technological content
of Latin American exports has not improved in general
terms during the last decade. Some analysts state that
the present trend is towards a new pattern of specialisa-
tion on commodities based on the exploitation of own
natural resources with low technological added value.
It is possible to visualise NSIs as an evolutionary
path towards higher levels of coherence in the web
of relationships established between the different ac-
tors that participate in the innovation process. It is
doubtful, however, if universities are accommodating
well to this ‘organising principle’, given the contra-
dictions that accompany the changes and continuities
in the conditions affecting knowledge production.
The depth and speed of the processes of change or
adaptation that universities are undergoing depend
on the broader context, on the current situation that
universities are experiencing, and on the strength of
universities’ traditions. The university situation is,
then, particularly fluid and prone to strong internal
1230 R. Arocena, J. Sutz / Research Policy 30 (2001) 1221–1234
controversies of uncertain outcome. We turn now to
some of the most visible impacts of the current trends
on Latin American public universities.
5. The impacts at university level
5.1. The new conditions of survival
Nowadays, every university researcher is in need
of external money to survive as a researcher. Exter-
nal money means funds that do not come from the
ordinary university budget and that must be obtained
through an application that gives rise to some evalua-
tion procedure. 10
The reasons why ordinary budgets have become
structurally insufficient are both external and inter-
nal. The former have been briefly mentioned earlier,
the latter have to do with the kind of issues Ziman
(1994) deals with in his book about ‘science in a
steady state’. In the present system of research, not
only ‘big science’ but every type of science is in need
of many more material resources than a few decades
ago. People engaged in experimental research find out
that scientific publications begin to specify the type
and model of the instruments that are accepted as
supporting empirical evidence. Everyone needs to be
networked and to have access to proprietary interna-
tional data bases, and all this costs much more money
than what is available through ordinary budgets.
For Latin American researchers the new funding
sources besides ordinary budgets are not very diversi-
fied. They can count on some competitive allocation
of funds from their own university or from interna-
tional loans like the IDB. They can count as well on
some international programs devoted to supporting
scientific research in developing countries, and they
can compete for support from some important private
research agencies in developed countries. Things are
far from easy, however, some lines of research receive
international equipment donations but others do not:
electronics, typically, is not supported by the interna-
tional co-operation agencies of developed countries.
The aid provided by international agencies often
10 That procedure fosters ‘the ethos of periodic assessment
— examination, scrutiny, evaluation, the just measure of pain’
(Schlesinger, 2000, forthcoming).
reflect the opinion such agencies have regarding what
should be researched at country level — typically,
issues related to tropical diseases are well endowed,
but basic biological research is not.
Researchers then face mainly three alternative sit-
uations (eventually one single researcher can pass
through the three of them in different stages of his/her
career): they are able to get funds to do relevant aca-
demic research, they are able to get funds mostly by
acting as consultants or by giving technical assistance,
they are not able to get any external funds. The prob-
lem of getting funds has acquired an obsessive tone.
For some researchers it is a condition of plain material
survival, given the salary levels and the growing diffi-
culties to obtain stable university positions. For others
it is a condition for doing ‘competitive’ research and
a question of survival in terms of the research group
as such. For everyone, even those in the most ‘pure’
research orientations, it is the mark of success, both
academic and social.
This situation tends to fragment the university
community and fosters an ‘everyone for himself’ type
of strategy. The great movements towards more bud-
getary allowances for public universities, that were
one of the backbones of Latin American universities
unrest a few decades ago, have been slowly and even
unnoticeable giving way to much more individualistic
responses. The ‘university’ is pushed toward a type
of ‘multiversity’, where research resources are more
unevenly distributed than in the past, depending on
the type of research, the disciplinary orientation and
the abilities for raising external funds. 11
Another type of surviving strategy is migration. This
is a two-fold strategy: researchers look for university
salaries that allow a reasonably living standard without
the need for a second job, and they also want work-
ing conditions able to foster academic productivity.
The ‘brain-drain’ phenomenon is well known in Latin
America. It had a spur in the 1970s, due to the fall of
democratic regimes in many countries. A great deal of
this scientific migration went to other Latin American
countries and it was partially reverted once democ-
racies were again in place during the eighties. The
late 1990s are witnessing a new and important Latin
American scientific migration push, this time oriented
mainly to the United States and some European coun-
11 (Kerr, 1972, quoted in Brunner, 1990).
 R. Arocena, J. Sutz / Research Policy 30 (2001) 1221–1234
tries (Pellegrino, 2000). 12 The new immigration laws
passed in the United States and in Germany directed
to capture well-trained people, particularly in com-
puting, will surely accelerate the ‘brain-drain’ path.
5.2. The evaluation system schizophrenia
As we have seen, new explicit goals related to the
economic health of the nations are nowadays a funda-
mental part of the explicit social role of universities.
It is important to qualify how new these goals are and
how deeply they are incorporated in a new university
‘ethos’. In fact, the insistence upon the need to legit-
imise academic research through ‘practical goals’ is
not at all new in Latin America. This is particularly
true in the case of basic research, a task that has never
enjoyed much political legitimacy because develop-
ing countries are always supposed to give priority
to practical goals. Since the setting of the National
Councils for Science and Technology in the 1960s,
when the systematic distribution of competitive funds
for research in Latin America first began, different
disciplinary research groups have learned how to
present their work under the ‘national priority’ um-
brella while following their own research agendas. On
the other hand, the academic evaluation system for in-
dividual researchers did not take into account neither
the supra scientific goals nor the social impacts of
research topics: the evaluation criteria fully assumed
the hypothesis underlying the ‘linear model’. Without
strong pressures from the world outside academia, the
evaluation system was unable to define and push for-
ward a set of alternative or complementary evaluation
criteria.
Latin American universities’ discourse is increa-
singly ‘Mode 2’ (Gibbons et al., 1994). There is a
growing praise to the importance of the blurring of
12 It has been calculated that 12% of the 1.434 million people
having a diploma in science or engineering or working on those
issues in the United States were born abroad, and 70% of them
were born in developing countries. In the Latin American case, in
1990, five countries were included in the USA census as having
a percentage of post-graduate people above the average of post-
graduate people in the whole foreigner population — Paraguay,
Chile, Bolivia, Venezuela and Argentina, the latter being by far
the higher. The Latin American countries below that average but
above the corresponding average for the USA population were
Cuba, Panama, Uruguay and Peru. (Pellegrino, 2000).
1231
disciplinary frontiers, of disciplinary cross-fertilisa-
tion, of sharing the act of knowledge production with
other actors, of retreating from the setting of the
research agenda in solitude. It would be reasonable to
expect, then, an evaluation system coherent with the
new discourse. This is not the case, however: while
university discourse shifts enthusiastically towards
‘Mode 2’, the academic evaluation system stays firmly
anchored on ‘Mode 1’.
This is not an ‘apparently’ schizophrenic situation,
exhibiting a contradiction between discourse and the
ways of measuring actions inspired by such discourse,
but in reality depicting a hidden coherence between
what researchers really do and the way they are evalu-
ated. The situation is truly schizophrenic because some
issues stressed in discourse, and effectively taken into
account by many researchers, are not included among
the evaluation criteria. The research evaluation system
is not being able to cope with the changes that the
external world is imposing upon university practices.
This schizophrenia is manifested in many ways.
Faculty must get projects financed by external sources
to keep on doing research and they must also take care
of administrating them, making reports to the spon-
sors, etc. The academic evaluation, however, mostly
takes into account how many papers the researchers
published during the year or during the period under
evaluation. If the project is related to problems of a
very local nature and therefore it is difficult to publish
results in mainstream journals — an overwhelmingly
difficult issue for applied sciences in Latin America,
the evaluation criteria mainly register the missing
papers. If the project dares to address a ‘non-pure’
disciplinary problem, another manifestation of the
evaluation schizophrenia arises. Inter-disciplinary
research, cross-fertilisation of ideas, methods and
heuristics, constitute the hard core of ‘Mode 2’ of
producing knowledge. Every researcher knows how
difficult is to materialise this ideal state of affairs.
Language, interests, jalousies, plain incomprehension
of the other’s approaches, are some of the obstacles
that any serious interdisciplinary initiative has to face
— that is, when thinking in common is a real issue
and not merely an exercise of thinking separately and
putting everything together afterwards. The evalua-
tion system is ill prepared to cope with this rather
new enthusiasm with inter-disciplines, it could have
been designed to punish their followers.
1232 R. Arocena, J. Sutz / Research Policy 30 (2001) 1221–1234
It seems that, while the research system is indeed in
transition (Cozzens et al., 1990), the academic evalua-
tion system lags behind, and therefore, schizophrenia
is an understandable outcome.
5.3. The new relations between research and
practical problems
Beyond money, the ‘relationist’ discourse has
permeated the research community. Nowadays, there
are very few who consider that in order to preserve
freedom, quality and long term concerns, research
must be at arm’s length from concrete applications.
It seems as if the long-standing ‘linear model’ that
assumed that good science would always find the way
to applications is being replaced in some cases by a
more ‘systemic’ comprehension of the whole issue
accompanied by a will to play the new game.
To understand the real dimension of these pheno-
mena in Latin American research universities, it is
important to remember the already mentioned prob-
lem of ‘loneliness’. It could be easy, as well as mis-
guided, to cry victory in face of the new trends: at
last the stubborn and elitist Latin American academic
researchers were forced to put their hands in the mud
of real life! Another picture emerges if the underly-
ing hypothesis is that most researchers would have
been interested in tackling real life problems, if these
problems had been articulated as concrete knowledge
demands and not as mere rhetorical claims. The new
budgetary pressures have had some results because
researchers have succeeded in finding common inter-
ests with external partners willing to pay for research
results. The question is whether these external part-
ners will be numerous enough to allow the research
system to survive, but, in any case, the ‘loneliness’
has diminished in some countries.
The evolution of knowledge and the flourishing of
all kind of heavily science based technological devices
has greatly accelerated, allowing for new possibilities
of problem solving and new types of knowledge pro-
ducers entering the game. In the Uruguayan case, for
instance, the cases of ‘pure’ basic scientists involved
in the solution of practical problems of production are
steadily increasing. One interesting example involves
the Physics Department of the Faculty of Sciences
and the Association of Meat Producers, working on
the problem of determining the tenderness of meat
through non-disruptive methods. Tenderness is one
of the attributes that count when exporting meat to
affluent markets, and the usual method of measuring
tenderness is to stretch the meat fibber until it breaks:
pieces of meat of a sample are removed and sent
to external specialised laboratories. The alternative
approach proposed by the physicists was a portable
device, able to measure elasticity by contact — elas-
ticity being a direct proxy for tenderness, not only
giving immediate answers but also allowing the ten-
derness certification of the totality of the cattle and
not only of a sample. The method developed for ten-
derness is now analysed further to find inspiration for
devices able to measure other important attributes,
like fat content. Beyond this example, what seems to
be slowly appearing in Latin America is a new type
of relationship between basic science, technology and
production, in which it is possible for some academic
actors to do what they consider relevant research with
funds coming from the productive sector. To what
extent this new type of relationships may surpass the
anecdotal level to acquire a self-sustained dynamics
remains an open question, the answer depends largely
on the future scenarios in which the interactions
between researchers and production will occur.
6. A prospective view
Based on the analysis above, two main possible
future scenarios can be imagined regarding the re-
lationship between changing knowledge production
and Latin American universities. The classical choice
between an optimistic and a pessimistic scenario is
presented through some broad indicators in Table 3.
In the optimistic scenario the changes in knowl-
edge production succeed in closing the gap between
local knowledge, capabilities and the solution of spe-
cific local problems, that is, in harnessing knowledge
to social change. The question is who are the main
actors able to fulfil such an optimistic scenario. Uni-
versities are being forced to change according to an
international pattern. On the contrary, the other actors,
mainly government and industry, are not following
an international pattern of ‘knowledge behaviour’.
One answer could be the formation of a new al-
liance between actors, articulated through innovation
policies ‘from the South’, that is, policies that take
 R. Arocena, J. Sutz / Research Policy 30 (2001) 1221–1234
Table 3
Broad indicators of optimistic and pessimistic scenarios
Optimistic scenario
A good indicator for the optimistic scenario would be that the
loneliness of LA public universities regarding the production
of knowledge begins to revert. This would imply the following:
1. The productive actors rely more on local R and D and so
the space for interactions steadily widens.
2. Even if not in all cases, the trust built around frequent
contacts allows university–industry alliances to tackle
more strategic and complex problems.
3. Success cases of university–industry jointly tackling prob-
lems of interest for academia and of importance for
production become sufficiently frequent to create a new
common wisdom, much more pro-active than the former.
4. The consequence is a ‘positive disruptive’ role in the conservative
organisations that universities are. A more flexible and adaptive struc-
ture for teaching is one of the first symptoms of this positive disruption.
5. Virtuous circles for the solution of specific local problems develop.
into account local specificity, particularly local weak-
nesses and strengths (Arocena and Sutz, 2000b). The
pessimistic scenario, on the other side, only needs the
persistence of present trends to be fulfilled.
It is not sensible to try to make a forecast of the
forecast. Nevertheless, being ‘university people’, we
can allow ourselves to believe that the following quo-
tation contains a good deal of truth. “The uniqueness
of the university . . . lies in its protean capacity to
change its shape and function to suit its temporal and
socio-political environment while retaining enough
continuity to deserve its unchanging name” (Perkin,
1984, p. 18, quoted in Geuna, 1998, p. 254). To try
to preserve this protean capacity for Latin American
universities is a good working programme indeed,
probably the one in which the academic sector can
do its best.
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