Costa Rica, known worldwide for its natural wonders, has also emerged as a leader in the manufacturing and export of medical devices. Free zones have played an essential role in the consolidation of this industry, providing competitive advantages and turning the country into a global benchmark.
1. Rise of the Medical Industry
Since the entry into operation of the North American Free Trade Agreement (NAFTA), Costa Rica has experienced notable growth in the medical device industry. According to data from CINDE and PROCOMER, currently, the medical device sector represents 28% of the country’s total exports. Likewise, Costa Rica has become the second largest exporter of medical devices in Latin America.
World-renowned companies such as Edwards Lifesciences and Boston Scientific have established operations in the country, not only because of its strategic geographical position but also because of the highly qualified workforce and the facilities offered by free zones.
2. The Advantages of Free Zones
Free zones in Costa Rica are delimited spaces where companies can operate with tax benefits and other incentives. These zones have been the driving force behind attracting $3.5 trillion of foreign direct investment into the medical industry in the last decade.
Some of the notable benefits include:
– Tax exemptions: Companies established in these areas enjoy exemptions from income taxes and import and export tariffs.
– Strategic location: Costa Rica, in the heart of the American continent, facilitates access to key markets in North America, South America and Europe.
– Skilled labor: The country invests about 8% of its GDP in education, which guarantees the availability of highly trained personnel.
3. Innovation and Development
The medical device industry in Costa Rica is not limited to manufacturing. The country has also promoted research and development (R&D) in the sector. Alliances between the private sector, universities and research centers, supported by foreign investment, have created an environment conducive to innovation, with the development of patents and new technologies in the medical field.
4. Challenges and Opportunities
Although Costa Rica has managed to position itself as a hub for the medical industry, it faces challenges, such as the need to continue investing in infrastructure and maintain the training of specialized talent. However, the opportunities far outweigh these challenges. The trend towards “tele salud (tele health)”, personalized medicine and medical wearables present vast areas of growth for the industry in the country.
Free zones have been fundamental in the transformation of Costa Rica as a leader in the medical device industry. With a combination of successful policies, investment in education and a strategic geographic location, the country has positioned itself as a global benchmark in the sector, demonstrating that innovation and development can go hand in hand with social well-being and economic growth.Contact us