Costa Rica Manufactures and Develops Medical Devices: 16 Areas of Specialization Stand Out in the Country

Expansion and Specialization in the Sector

Over the past 23 years, Costa Rica has expanded its expertise from five to 16 areas of specialization, positioning itself as a global competitor in the medical device sector. This progress is supported by ongoing efforts to increase competitiveness and innovate. Costa Rica manufactures and develops medical devices in Class I and II categories while advancing in designing, developing, and validating Class III products. These high-value products require unparalleled precision and adherence to rigorous certification standards.

“We have achieved high sophistication with a unique value proposition for investors, but we can still do more,” says CINDE’s General Director, Marianela Urgellés. This acknowledgment underscores the ongoing commitment to innovation and growth.

Medical Devices by the Numbers

The growth of the medical device sector in Costa Rica is nothing short of remarkable. Since 2017, the number of medical device companies operating in the country has increased from 67 to 86. In the same period, employment in the sector has more than doubled, rising from 22,399 jobs to over 55,000. CINDE highlights that the number of original equipment manufacturing (OEM) companies has grown by 39%, with exports doubling and employment increasing by 127%.

In 2023 alone, precision products and medical equipment accounted for 42% of Costa Rica’s total goods exports, a significant increase from 26% in 2017. These statistics illustrate how deeply embedded Costa Rica’s manufacturing and development of medical devices have become in the national economy.

Factors Driving Success

Several factors contribute to Costa Rica’s success in the medical device industry:

Political Stability: Costa Rica’s long-standing political stability provides a reliable environment for foreign investment.

Well-Defined Regulatory Framework: A transparent and robust regulatory framework ensures compliance and fosters investor confidence.

Highly Specialized Workforce: The country’s workforce is highly trained and equipped to meet the complex demands of the medical device industry.

Robust Ecosystem: Costa Rica has developed an ecosystem that enables multinational companies to develop end-to-end. This ecosystem includes a diverse network of suppliers providing raw materials, essential processes, and key services.

“Costa Rica manufactures and develops medical devices within a robust ecosystem that allows multinational companies to manage everything from design to manufacturing in one location,” notes CINDE. This comprehensive support system is a significant draw for international investors.

Competition and Challenges

While Costa Rica has made significant strides, it faces competition from the Asian market, where countries like China and India dominate the medical device manufacturing space. Nearby nations in Latin America are also vying to establish themselves as contenders in this sector.

“Although Costa Rica ranks third in the FDI Global Greenfield Investment Index, its current challenge is not only to attract investment but also to retain it and make it sustainable in the long term,” explains CINDE. To meet this challenge, the country must continue to innovate, enhance its workforce, and develop sustainable practices.

Innovation and Sustainability: The Next Frontier

The medical device industry must embrace innovation and sustainability in a rapidly evolving technological landscape. Costa Rica manufactures and develops medical devices with established product redesign, process automation, new product development, and testing capabilities. These strengths position Costa Rica to participate in more complex research and development projects.

“The ‘next frontier’ for Costa Rica’s medical device industry will be its transition to a comprehensive research, development, and advanced manufacturing center,” says Urgellés. “This will solidify our position as a leader in a global market that demands innovation and responsibility at every stage of production.”

Sustainability is another critical focus area. As global markets increasingly prioritize environmentally responsible practices, Costa Rica’s efforts to integrate sustainability into its manufacturing processes will enhance its competitiveness and appeal to investors.

Future Prospects and Global Engagement

Costa Rica is committed to strengthening its position as a leader in the medical device industry. Efforts to attract and retain investment will continue into 2025, with participation in prominent industry events like MD&M West 2025. This event, recognized as the most important business fair for the medical device industry in North America, will feature Costa Rica, which manufactures and develops medical devices alongside companies like BAC, Baker Tilly, Cushman & Wakefield, B Advisory, and Aguilar Castillo Love.

Participation in such events showcases Costa Rica’s capabilities and provides opportunities to forge new partnerships and attract investment. The country aims to establish itself as a reliable and advanced strategic partner for the global medical technology market.

Conclusion

Costa Rica’s journey from assembling medical device components to becoming a leader in research, development, and advanced manufacturing is a testament to its commitment to innovation and excellence. With a robust ecosystem, specialized workforce, and strategic focus on sustainability, Costa Rica manufactures and develops medical devices to meet the demands of the global market. As the country continues to evolve, it will undoubtedly play a pivotal role in shaping the future of this vital industry.