Latin America and the Caribbean countries have not been able to build virtuous links among the various relevant social actors involved in S&T production and use. There are problems both on the supply and demand sides. Concerning the former, universities and public research institutes, which together perform almost 70% of R&D, have not created mechanisms to identify user's needs and set their research agenda on the basis of scientific criteria in line with international mainstream science. On the demand side, there is not much demand for local R&D, since transnational corporations innovate on the basis of R&D conducted in the advanced countries and local private firms, in order to be competitive, also prefer to import foreign technology. Governments in some countries have implemented a few schemes aiming to bring together supply and demand but, with a few exceptions, they have not been successful.Léa Velho is professor in the