Transformative Innovation Policy (TIP) is a new paradigm in science, technology, and innovation policy that seeks to produce a transition to sustainable development. In this paradigm, universities are crucial actors in the dynamics of science, technology, and innovation, but their role in the implementation of TIP should be defined. The objective of this article is to contribute to the understanding of the ideal role of Latin American universities in the implementation of TIP. Therefore—to describe and analyze the concepts of university and TIP in Latin America—this case study examines the co-creation of a public policy of science, technology, and innovation by Higher Education Institutions (HEIs) in that region. This article underscores the vital role of universities in promoting transformative innovation that fosters social inclusion and sustainability. To achieve this goal, structural policy changes should be implemented, and different stakeholders (including researchers, students, and civil society) should be actively engaged. This paper also highlights the importance of addressing socio-economic, cultural, political, cognitive, and environmental issues faced by marginalized communities. By embracing the principles of transitions theory and prioritizing transformative innovation, universities can make significant contributions towards achieving Sustainable Development Goals (SDGs).