Since 2017, the number of original equipment manufacturing (OEM) companies in Costa Rica has grown by 39%. Costa Rican medical device exports have doubled, and employment in the sector has increased by 127%, according to CINDE (Costa Rica’s Investment Promotion Agency). Costa Rica has solidified its position as a strategic hub for the manufacturing and export of medical devices. By 2023, the country achieved an export value exceeding $7.5 billion, reflecting an average annual growth of 18% since 2017. This remarkable performance places Costa Rica as the second-largest exporter of medical devices in Latin America and the fifth-largest supplier to the United States.
Strategic Vision and Industry Diversification
This exponential growth is not coincidental; it stems from a well-executed, long-term strategic vision. Costa Rica has successfully attracted some of the world’s largest medical technology companies, with 14 of the top 30 multinational corporations establishing operations there. These companies are drawn by Costa Rica’s ability to support advanced manufacturing processes and foster innovation in the medical device industry.
“Costa Rica’s success has been methodically built over decades, during which the sector has diversified its production,” explains Marianela Urgellés, CINDE’s General Director. In 23 years, the industry has expanded from focusing on just five areas to covering 16 specialized fields, including cardiovascular systems, respiratory devices, neuro-endovascular tools, and orthopedic equipment. This diversification has enabled the country to remain competitive in an evolving global market, driving the impressive growth of Costa Rican medical device exports.
A Robust Ecosystem and Skilled Workforce
The medical device ecosystem in Costa Rica has matured significantly. Between 2017 and 2023, the number of companies in the sector increased from 67 to 86, and employment grew from 22,399 to over 55,000 positions. This robust growth has been supported by developing a strong supply chain, including suppliers of raw materials, advanced manufacturing processes, and critical services.
Costa Rican medical device exports have also benefited from the country’s workforce, a key driver of this growth. The country’s investment in education and vocational training programs has resulted in a highly skilled talent pool, particularly in engineering, quality assurance, and regulatory compliance. These capabilities have made Costa Rica an attractive destination for companies setting up end-to-end manufacturing operations.
Economic Impact of the Sector
The medical device industry’s contribution to Costa Rica’s economy cannot be overstated. In 2023, 42% of the country’s total goods exports were from precision products and medical devices, a significant increase from 26% in 2017. This growth highlights the sector’s role as a cornerstone of Costa Rica’s export economy, creating high-value jobs and driving foreign direct investment. The strength of Costa Rican medical device exports underscores the sector’s critical importance to national economic growth.
Political Stability and Regulatory Framework
Costa Rica’s political stability and well-defined regulatory framework have also played crucial roles in the industry’s success. The country offers a predictable business environment, essential for multinational corporations operating in highly regulated industries like medical technology. Additionally, Costa Rica’s adherence to international quality and safety standards ensures that its Costa Rican medical device exports meet the stringent requirements of markets such as the United States and Europe.
Competitive Advantages and Challenges
Another critical factor in Costa Rica’s success is its strategic geographic location. Situated in the heart of the Americas, the country provides easy access to North and South American markets, with well-established logistics and trade agreements facilitating the flow of goods. Moreover, Costa Rica’s Free Trade Zone regime offers attractive incentives, including tax exemptions, to foreign investors.
However, Costa Rica faces growing competition from Asia and other emerging markets. Countries like Vietnam and Malaysia are rapidly developing their medical device industries, leveraging lower labor costs and expanding technological capabilities. Costa Rica must continue investing in innovation, workforce development, and infrastructure to maintain its competitive edge.
Looking Ahead: Opportunities for Expansion
As the global demand for medical devices rises, Costa Rica is well-positioned to capitalize on new opportunities. The country’s focus on sustainability and green manufacturing practices is an emerging advantage. Many multinational companies increasingly prioritize environmental responsibility, and Costa Rica’s reputation as a leader in sustainability aligns with these values. Integrating renewable energy into manufacturing processes and pursuing green certifications further enhance the country’s appeal to environmentally conscious investors.
Additionally, the ongoing development of specialized industrial parks tailored to the needs of the medical device sector could further strengthen Costa Rica’s position. These parks provide state-of-the-art infrastructure, ensuring that companies can operate efficiently while benefiting from proximity to suppliers and research institutions.
Collaboration and Innovation
Collaboration between the public and private sectors has been a hallmark of Costa Rica’s success. Initiatives such as partnerships with universities and research centers have fostered innovation, enabling companies to develop cutting-edge products. This collaborative approach drives technological advancements and enhances the country’s reputation as a hub for high-value manufacturing.
Conclusion
Costa Rican medical device exports are a testament to the country’s strategic planning, skilled workforce, and supportive business environment. While challenges from global competitors persist, Costa Rica’s commitment to innovation and sustainability ensures its continued growth in the sector. As the country evolves into an even more sophisticated manufacturing hub, its role in the global medical device supply chain will likely expand, solidifying its position as a leader in the industry.