1. MILLENNIUM SCIENCE INITIATIVE - CHILE GLOBAL FORUM ON BUILDING SCIENCE, TECHNOLOGY AND INNOVATION CAPACITY FOR SUSTAINABLE GROWTH AND POVERTY REDUCTION Claudio Wernli Executive Director Washington, February 13 – 15, 2007

2. OBJECTIVES FORMATION OF CENTERS TOWARDS EXCELLENCE AT INTERNATIONAL LEVELS SATISFACTORY WORKING ENVIRONMENT, UNDER SUFFICIENT RESOURCES, AUTONOMY, FLEXIBILITY REDUCTION AND REVERSION OF BRAIN DRAINAGE STRENGTHENING OF INSTITUTIONS (UNIVERSITIES) AND THE S&T SYSTEM

3. CHILE PIONEER IN MSI MODEL. FOLLOWED BY BRAZIL, MEXICO AND VENEZUELA (ALL WITH WB SUPPORT)

4. THE PROGRAM WAS INSERTED OUTSIDE THE NATIONAL SYSTEM OF S,T&I SIGNIFICANT NATIONAL RESISTENCE

5. Definition of Centers of Excellence Groups of scientists within common area (Associated /Senior/Young/ Students/ Postdocs/ Support staff). From one or several Institutions (Universities) INSTITUTES: ~ 10 Associate Researchers (~50 total) 5+5 years - M USD: 1.2 / year NUCLEI : ~ 3 Associated Researchers (~ 25 total) 3+3 years - M USD: 0.27 / year. (Focused primarily to young scientists)

6. ACTIVITIES OF INSTITUTES AND NUCLEI 1.CUTTING EDGE S&T RESEARCH 2.FORMATION OF YOUNG SCIENTISTS 3.NETWORKING ACTIVITIES WITH INTERACTION AND COLLABORATION AT NATIONAL AND INTERNATIONAL SCALES 4.OUTREACH ACTIVITIES (PUBLIC, EDUCATIONAL, PRIVATE, INDUSTRY, SERVICES, OTHER)

7. ORIGINAL FEATURES OF THE MSI IN RELATION TO OTHER S&T COMPETITIVE FUNDS IN CHILE 8 DISTINGUISHED FOREIGN SCIENTISTS (PROGRAM COMMITTEE) FOR JUDGMENT OF PROPOSALS AND PROGRAM SCIENTIFIC OVERSIGHT FUNDS DIRECTLY TO SCIENTISTS/GROUPS (USE SIMPLE, FLEXIBLE & AUTONOMOUS) AN OUTREACH COMPONENT: COMPULSORY NO AREAS/THEMATIC PRIORITIES FEASIBILITY OF INDEPENDENT CENTERS FORMATION BIDDING PROCESSES: PRELIMINARY PROFILES, FOLLOWED BY FULL PROPOSALS (SEVERAL ON PROGRESSIVE ADOPTION IN CHILE)

8. Selection Process Open call for proposals –Program Committee (PC) foreign: select pre-proposals –Invitation to selected for full proposals –PC: second selection - Final list: Interviews in Chile by PC (Institutes include site visits) –Ranking and recommendations: PC to Board of Directors Competitive renewals –Parallel process: evaluation reports joint ranking among all projects (PC) Overall granting decision: Board of Directors, based on PC recommendations

9. ANNUAL MEAN BUDGET (MUSD / YEAR): 2000- 2005: 6.5 (3 SI & 10 SN) 2006 : 10.4 (3 SI & 14 SN) 2007: 12.6 (5 SI & 15 SN) BUDGET DISTRIBUTION: 94% to Institutes and Nuclei 6% to Management (3,4% Executive Secretariat)

10. MONITORING AND EVALUATION (PARTICULARLY RELEVANT AS PILOT MODEL) FOREIGN EVALUATIONS PANELS OF INDEPENDENT INTERNATIONAL EXPERTS: –2000 AND 2001 WORLD BANK: EVALUATION REPORT AT END OF 3 YEARS PHASE (WB PROJECT) 2003 2005: EVALUATION OF 3 INSTITUTES, AND 5 NUCLEI (REPORTS: HIGHLY POSITIVE COMMENTS - WEB) NATIONAL EVALUATIONS (CONSULTERIES) PRODUCTIVITY OF MSI CENTERS: BASELINE OF PARAMETERS AND INDEXES, FOLLOWED IN TIME (PERMANENT) GOVERNMENT EVALUATION OF NATIONAL PROGRAMS (2006)

11. DISCIPLINES SELECTION CRITERIA No area prioritization Essentially SCIENCE EXCELLENCE (Basic- Technological-Mission Oriented- ALL) and potential of team work & synergy Secondary (under similar merits): gender ; regions Within best national science, Board can decide upon priority areas (has not happened) Overall criteria: a) Keep and take advantage of own "brains" (expensive gifts overseas); b) Get on board Global Science for the Knowledge Economy, or lose

12. SOME ACHIEVEMENTS OF INSTITUTES AND NUCLEI FORMATION OF YOUNG SCIENTISTS

14. WORLD BANK: FAR THE MOST RELEVANT SOURCE OF ADVANCED SCIENTISTS FORMATION IN CHILE

17. SOME DISCOVERIES OF WORLD CONNOTATION 24 advances/discoveries reported in 9 disciplines (2003 – 05) Some examples: Medical scanners recovery Magnetic signature Piscirickettsia salmonis vaccinne Sismogenetic mechanisms and rupture in earthquakes Enzymes for detergents in cold (In process of patent)

18. LINKS WITH INDUSTRY AND EDUCATIONAL AND PUBLIC SECTORS 2002 - 2004: INDUSTRY: Over 35 activities and projects for the mining, forestry, agricultural, pharmaceutical, information and communication, health, and services sectors EDUCATION: Over 20 activities of training and research oriented to professors and students of mid and primary education

19. BASIC – APPLIED SCIENCE? Mission oriented / Strategic / Technological towards R & D? SHOULD BE TRANSDISCIPLINARY MIX ALERT: EQUILIBRIUM (usual tendency for second type)

20. IN NETWORK AND OUTREACH LARGE NUMBER OF INTERESTING ACTIVITIES, e.g.: Extension Courses for Secondary Teachers Lectures for Schools Seminars for Chilean Scientists Working Abroad National / International Courses Workshops and Symposia Exchange of Senior and Young Scientists Creation of Joint Postgraduate Courses Approaches towards the industry National/International Networks ENTHUSIASM OF RESEARCHERS

21. BASIC KEYS OF SUCCESS Rigorous selection of best groups of scientists (Foreign top PC) Sufficient funds Autonomy and flexibility. Limited bureaucracy and controls However: Permanent evaluation plan, and challenge of competitive renovations And another general: Government support, and minimization of political influence in science (starting by the right women/men in the right places)

22. WORLD BANK: SOME OF LESSONS LEARNED WORLD BANK: SOME OF LESSONS LEARNED AUTONOMY IN USE OF FUNDS AND REDUCED BUROCRACY ARE KEY FACTORS FOR DEVELOPING SCIENCE EFFECTIVELY FUNDS ALLOCATIONS HAVE TO BE SUFFICIENTLY LARGE SO AS TO ALLOW THE CENTERS TO COMPETE AT SIMILAR LEVELS WITH THE BEST OVERSEAS A WELL MANAGED INVESTMENT, ALBEIT SMALL, MAY LIFT A NATIONAL SYSTEM OF SCIENCE AND TECHNOLOGY. HOWEVER, SUBSIDIZE AND COHERENCE IN GOVERNMENT POLICIES AND ACTIONS ARE CRUCIAL

23. www.iniciativamilenio.cl MUCHAS GRACIAS

24. COMPLEMENTARY SLIDES

25. ORIGINS AND BACKGROUND DIAGNOSIS: LIMITATIONS IN THE NATIONAL SYSTEM OF SCIENCE AND TECHNOLOGY INTERNATIONAL CONVOCATION ON SCIENCE AND TECHNOLOGY REALIZING THE GLOBALIZATION OF DISCOVERY, JUNE 4-5, 1998 INVITED: S&T FOREIGN (SCIENTISTS, MINISTERS). RECOMMENDATION: FORMATION OF CENTERS OF EXCELLENCE

26. GENESIS OF THE PROJECT (1999) MSI PROJECT WORLD BANKSCIENCE CONSULTANTS PRESIDENTIAL COMMISSION (SCIENCE)

27. MSI ORGANOGRAM BOARD OF DIRECTORS EXTERNAL PEER REVIEWERS PROGRAM COMMITTEE EXECUTIVE SECRETARIAT SCIENCE INSTITUTES SCIENCE NUCLEI

30. FINANCIAL INVESTMENT INITIAL PHASE 2.5 YEARS: LIL (WB-FIRST): USD 5 MILLION + NATIONAL COUNTERPART: USD 10 MILLION (EQUIVALENT TO APP. 6% OF NATIONAL INVESTMENT IN S&T COMPETITIVE FUNDS)

31. WORKING AREAS Biotechnologies Medical Sciences Genetics Microbiology Ecology Materials Physics Mathematics Chemistry Seismology Information and communication technologies Glaciology Energetic processing and transportation Industrial optimization (Among others)

37. REGRETFULLY:NO NATIONAL OR INTERNATIONAL BENCHMARKING FEASIBLE

38. EXTRACT FROM OFFICIAL WB COMMUNICATION: THE SCIENCE FOR THE KNOWLEDGE ECONOMY PROJECT WILL FINANCE INITIATIVES FOR SCIENTIFIC AND TECHNOLOGICAL RESEARCH, AND AT THE SAME TIME GIVE SUPPORT TO THE GOVERNMENT OF CHILE IN ITS STRATEGY FOR ESTABLISHING A COMPREHENSIVE APPROACH COMPRISING SCIENCE LEARNING AND TECHNOLOGICAL INNOVATION THIS LOAN IS BASED ON THE SUCCESS OBTAINED BY THE MILLENNIUM SCIENCE INITIATIVE (MSI) LAUNCHED BY THE MINISTRY OF PLANNING AND COOPERATION OF CHILE WITH THE SUPPORT OF THE WORLD BANK

39. WITH WORLD BANK PROGRESS TOWARDS 2nd PHASE CHANGED TOWARDS LARGER AGREEMENT TO STRENGTHEN NATIONAL SYSTEM

40. HIGHLIGHT FROM 2001 INDEPENDENT PANELS REPORT: We believe that the MSI program as a whole has been of great success. A relatively low investment has been surprisingly effective.

41. CHILES CURRENT SITUATION ON S,T&I UNIVERSITIES – Main Strength SPECIFIC COMPETITIVE INSTRUMENTS: INCREASING GROWTH SINCE 1990

42. MAIN LIMITATIONS 0.7% of GDP LACK OF SCIENTISTS (10-20% compared OECD countries) CENTRALIZATION OF S, T & I PARTICIPATION OF PRIVATE SECTOR LIMITED PATENTING

43. A.EXCELLENCE IN SCIENCE -INDIVIDUAL SCIENTISTS PROJECTS (3 years) – FONDECYT -CENTERS OF EXCELLENCE -REGIONAL RESEARCH CENTERS -POST GRADUATE SCHOLARSHIPS (National and Overseas) -POST DOCTORAL FELLOWSHIPS B.R&D WITH INDUSTRY AND SERVICES -R&D PROJECTS (FONDEF) -PRIVATE / PUBLIC CONSORTIA -INSERTION OF YOUNG SCIENTISTS IN INDUSTRY

44. C.PRIVATE ENTERPRISES DEVELOPMENT & INNOVATION -TECHNOLOGY TRANSFERENCE & INNOVATION -TECHNOLOGICAL ENTREPRENEURIAL CONSORTIA -BUSINESS INCUBATIONS -SUPPORT TO SME, PATENTING AND OTHER -FOSTERING NEW INDUSTRIES AND PRODUCTS (FUNDACION CHILE) D.OTHER -AWARENESS & DIFUSSION OF S, T & I

45. RELEVANT STEPS SINCE 2005 NATIONAL FUND FOR S,T&I (Tax to mining industry) USD 100 m/year, on increase to 180 m TAX SUBSIDY 35% TO PRIVATE INVESTMENT ON S,T&I