As students progress through<sup>theeducationsystem,scientific and technological</sup> education opportunities should<sup>deepenanddifferentiatewithinacontextoflifelong</sup> learning. Between the general<sup>scientific literacythatispartof secondaryeducation,and</sup> the advanced programs pursued<sup>by university-boundstudents,acriticalmiddlelevelof</sup> technical skill needs to<sup>bedeveloped.</sup> Secondary-level science education<sup>should</sup> stimulate learners and encourage<sup>studentstopursuecareersinS&T,whetheras</sup> technicians, engineers, or researchers.<sup>Todothis,andtoprovide opportunitiesforlife-</sup> long learning and skill-updating<sup>requiresanarrayof technical andprofessionalschools,</sup> community colleges, and other<sup>intermediateS&T institutions.Technicaland professional</sup> schools often seek to provide<sup>mid-leveltechnicalskilltolargenumbersof studentsin</sup> areas with strong immediate<sup>labor marketdemand.</sup> More advanced training opportunities<sup>will beoffered bya differentset of institutions</sup> within a country's tertiary<sup>educationsystem.Thesemightinclude regional and national</sup> universities, as well as research<sup>universitiesandinstitutes. Often,research universities</sup> and institutes are the locus<sup>ofacountry'smaineffortsinknowledgeproductionand</sup> advanced human capital training<sup>inS&T.Withoutthenecessarypoliciesthatencourage</sup> the proper functioning, growth<sup>andreformof thediverse institutions that worktogether to</sup> educate a country's populace,<sup>it isunlikely theresultingworkforcewill be trainedin the</sup> relevant skills needed to<sup>driveacomplexandgrowingeconomy.</sup> The reform and improvement of tertiary education<sup>systemsisadomainuntoitself,andthechallenges</sup> here are many and important. Options for reform in tertiary<sup>educationgenerallyare</sup> discussed in the Bank's<sup>2002tertiaryeducationpaper,"ConstructingKnowledge</sup> Societies: New Challenges for Tertiary<sup>Education." Thatpaperandthisoneare</sup> complementary and are intended<sup>to be read anddisseminated together.</sup> Promoting research quality<sup>isadelicate institutionalbalancingact.Someissuesare</sup> general and affect tertiary education<sup>andresearchinstitutionsof all types.Thesepertain</sup> to the quality of faculty, the<sup>relevancyof curricula,the adequacyof physicalresources,</sup> the flexibility and autonomy<sup>of institutionalmanagement,andthesources andstabilityof</sup> financing. A major challenge facing<sup>developingcountriesishowtheycanmeetthe</sup> growing demand for tertiary<sup>educationwhilesimultaneously improvingqualityand</sup> relevance, within shrinking public<sup>budgets.The growing rolefortheprivatesectorin</sup> higher education is another<sup>phenomenonthat requiresattention.</sup> These issues acutely affect education in science<sup>andengineering,whichtends tobemore complexand</sup> expensive, particularly in research-intensive<sup>subdisciplines.</sup> Other issues are specific to<sup>scienceandtechnologyitself;</sup> they revolve around assuring the linkages between<sup>graduateeducation,theprivatesector and publicly-funded,</sup> university-based research systems.<sup>Thelatter relieson competitiveallocationprocedures;</sup> transparency, and peer review;<sup>research evaluationandaccountabilityforresults;special</sup> programs, national priorities,<sup>andperhapsmostimportant, theadaptabilityof thesystem</sup> to changing conditions and<sup>new challenges.Anothercritical issuein tertiary educationis</sup> how to balance public support<sup>forforeignanddomestictrainingtostrengthendomestic</sup> capabilities and avoid brain-drain<sup>by individualseducatedat publicexpense.</sup> 13