The Bo Bo Region has pioneered regional development in Chile. It has a high concentration of higher education and research activity. Its universities and other higher education institutions have made significant progress in widening access to education. But challenges remain: the Bo Bo Region continues to suffer from brain drain as well as higher than average unemployment and poverty rates. How can the Bo Bo Region promote new business formation and the development of the existing small and medium-sized companies? What incentives are needed to improve higher education institutions’ regional and local orientation? How can higher education institutions move from knowledge generation towards knowledge transfer? This joint OECD and World Bank review explores a range of helpful policy measures and institutional reforms to mobilise higher education for the development of the Bo Bo Region. It is part of the series of the OECD reviews of Higher Education in Regional and City Development. These reviews help mobilise higher education institutions for economic, social and cultural development of cities and regions. They analyse how the higher education system impacts upon regional and local development and bring together universities, other higher education institutions and public and private agencies to identify strategic goals and to work towards them.