This chapter discusses the importance of research and innovation in Chile. It analyses the growth of research in recent years, and the relative contributions of government and the private sector to research spending and research performance. It considers research in higher education: which institutions carry it out, its impact, strengths and weaknesses, and how university research might be developed. The chapter also looks at research funding and funding trends; at the research policy framework; at ensuring longer-term support for centres of excellence or regional centres; and at international research co-operation.