The purpose of this chapter is to discuss the ability of Chile’s human capital formation system to build capacity and foster innovation, and recommend ways in which BCP can further complement it. The labour market in Chile is short of high quality graduates, and it is likely that demand for higher education will further increase. This will require enlargement and diversification of programmes and portfolio of the Chilean Universities while raising quality, and coping with challenges related to the ageing of academic staff, lack of incentives for improving the quality of teaching, low academic staff levels, etc. The chapter recommends addressing the quality demand through the introduction of BCP sub-programmes for visiting professors, for attracting foreign students, and for training of personnel from enterprises. Particular attention should be given to the challenge of attracting and reinserting scholarship recipient graduates into the country. The chapter offers recommendations and looks at the strategies similar programmes in other countries have used to address the issue.