Costa Rican Life Science Sector Leads the Region in Talent, Investment and Medical Device Growth

Positioned as a Regional Leader in Life Sciences Export Capacity

The Costa Rican medical devices industry has made a significant impact in Latin America in recent years. With the region facing its largest shortage of trained technicians in at least the past two decades, Costa Rica’s Life Sciences sector has demonstrated a successful model of export manufacturing and talent development. In its latest Life Sciences sector (medical devices) market report, CBRE studied the ecosystem in Costa Rica and highlighted its leadership in the region across three key variables: operating conditions, supply chain depth and development, and consistent foreign investment.

Costa Rica has now established itself as a production and export powerhouse with world-class medical device manufacturers such as Edwards Lifesciences, Getinge, Genstar, Smith + Nephew, Technimed, Tecnon, and more. The country is currently second in the region in terms of medical device exports, behind only Mexico. The Costa Rican Life Sciences sector is a major contributor to the national economy and now accounts for 13% of GDP and 43% of all export revenues.

The continued growth of the sector in the past year has been demonstrated by an increase in exports to $5.2 billion and a robust average annual growth rate of 35% over the past decade. Along with this, the industry also creates substantial economic linkages within the Costa Rican economy as it continues to deepen its supply chains and increase the share of value added that remains in the country.

Sustained Sector Growth and Deepening Local Integration

Costa Rica has been able to grow its Life Sciences ecosystem and attract world-class medical device manufacturers due to strong operating conditions for companies. As highlighted in the CBRE report, Costa Rica currently demonstrates the following indicators, among others:

• Over 55,000 direct jobs
• 600,000 m² in occupied production space
• 11 new companies and 10 reinvestments in the past three years
• Salaries 27% higher than the regional average for skilled professional positions
• 24% share of Latin America’s medical device exports

The growth of Costa Rica’s Life Sciences sector and medical device industry in particular has shown to be both sustained and increasingly integrated, generating new domestic economic activity and building deeper supply chains. Costa Rica has quickly become a regional favorite among foreign Life Sciences companies due to the real estate, talent, and operating conditions it can provide.

CBRE’s Senior Vice President of Advisory & Transaction Services, Industrial & Logistics, Bernal Rodríguez, SIOR, spoke on the current competitiveness of the Costa Rican life sciences sector and how it has consolidated into one of the most capable in Latin America:

“The advanced manufacturing ecosystem that has developed in Costa Rica is unique in the region. Costa Rica offers investors a great combination of factors, such as a highly skilled workforce, institutional stability, and a modern industrial real estate offering, among others, which position it as a key destination for Life Sciences companies and other related industries.”

Costa Rica’s Competitive Advantages in the Region

Costa Rica’s advanced manufacturing and Life Sciences production ecosystem is seen to be a magnet for new and expanding foreign firms. The country offers a wide range of advantages that have been developed over many years. These include a competitive labor market, regulatory and tax stability, and a deepening infrastructure ecosystem, including new industrial real estate.

Among the industry’s most notable advantages, Costa Rica currently offers the following:

1. Significant Labor Cost Savings

Companies can access a highly trained and experienced production workforce in Costa Rica that costs an average of 58% less than labor in the United States. This makes Costa Rica an appealing nearshoring option for many U.S.-headquartered companies in search of high-quality production at an attractive price point.

2. Stable and Favorable Labor Environment

Costa Rica is a low-risk and low-cost country for labor issues, with minimal unionization and strikes in the country’s industrial sector. The country’s overall reputation as a politically and institutionally stable democracy also increases its reliability and predictability for long-term foreign investors.

3. Highly Prepared Talent Pool

Costa Rica is home to one of the most prepared workforces in the region. The country’s higher education system, which includes highly regarded institutions such as the University of Costa Rica (regional ranking of 14th for human capital formation), and a network of technical training centers and bilingual schools that support the Costa Rican life sciences sector.

4. Expansion of Industrial Infrastructure

Costa Rica’s industrial real estate market is currently undergoing a substantial expansion of new industrial space. There is currently 150,000 m² of new industrial space under construction, 75% of which is being built in the country’s fast-growing Grecia corridor. This region of the country has established itself as one of Costa Rica’s most important industrial zones thanks to modern free zone parks, top connectivity, and a tailored infrastructure to suit advanced manufacturing companies’ needs.

A Destination for Strategic and Sustainable Investment

As a core pillar long-term development strategy, foreign investment in the Costa Rican life sciences sector has been growing steadily in recent years. In the report, CBRE noted that companies are choosing to invest in Costa Rica, not only for its ability to drive down costs, but also for its long-term strategic vision and willingness to invest in sustainable growth. Multinationals are also attracted by the country’s environmental policies, renewable energy infrastructure, 100% reliable electric grid, and overall emphasis on ethical business practices.

Rodríguez added that CBRE plays a critical role in the decision-making process as companies weigh their key variables when choosing a country for operations:

“In the eyes of our clients, every factor matters. Labor costs, tax incentives, operating costs, logistics costs, real estate availability, and other considerations all play a factor. Our work is to help our clients understand and secure their long-term success in Costa Rica, and that means analyzing every single variable that matters to them.”

Costa Rica also has a Free Trade Zone Regime offering a range of tax exemptions and benefits, along with a streamlined regulatory process, specifically intended to attract foreign companies and to help grow high-value industries such as Life Sciences, precision manufacturing, and biotechnology.

A Future of Continued Innovation and Growth

The Costa Rican life sciences sector is currently performing strongly in all key categories. The industry produces $5.2 billion in exports and has been growing by an average rate of 35% each year over the past decade. Costa Rica is quickly consolidating itself as a world leader in the life sciences and medical devices industry and has already secured its place in the global medical device supply chain.

These numbers reflect a sophistication in the products Costa Rica can produce and the diversification of the overall product portfolio. The industry has continued to grow in recent years and is also a beneficiary of firm reinvestments and new companies entering the market.

CBRE expects Costa Rica to continue to consolidate itself as a regional hub for innovation and specialized manufacturing. This growth will likely be defined by an increase in highly technical companies that are looking for a scientifically capable workforce, high operational stability and security, and a strategic geographic location close to North American markets. As medical device demand increases worldwide and as companies seek more resilient, nearshored supply chains, the Costa Rican life sciences sector is well-positioned to remain one of the most competitive and forward-thinking in Latin America.