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In this article, the movement of knowledge and discoveries that take place in Chile, between academia and industry is reviewed. Examples of knowledge transfer activities, such as training, consultancy, contract and collaborative research as well as licensing relating to Chile’s bioscience sector are presented. In addition, a knowledge transfer ‘fitness’ index of Chile’s six leading universities is derived and analyzed. As a result, an approach for obtaining efficient knowledge transfer activities tailored to the biotechnology industry in Chile is proposed. Indeed, it is recommended that universities that lack intellectual property rights or knowledge transfer capacity concentrate their efforts in developing tailor made consultancy services, focused on biotechnology projects that could be turned into research collaborations with biotechnology companies. Finally, a number of useful information resources about the developments currently taking place in the biotechnology sector in Chile as well as a detail description of the mutual long term benefits of research collaborations to industry and academia are offered.