Medical Device Industry in Costa Rica Strengthens Alliances to Boost Growth

From Textiles to Intelligent Manufacturing

Costa Rica’s transformation from a textile manufacturing hub to a center of Intelligent Manufacturing in sustainable environments clearly demonstrates its adaptability and growth potential. The country is now pioneering the development of sophisticated equipment, some of which are invasive and can be partially or wholly implanted inside a person’s body, to enhance patients’ quality of life.

Exponential Growth and Economic Impact

Recently, experts revealed during the update and networking event that united companies from the medical device industry in Costa Rica at the first edition of the Costa Rica MD Summit that this sector has been experiencing exponential and sustained growth in recent decades, a promising sign for its future.

Federico Rivera, President of the Medical Devices Cluster, stated that in 2000, the sector represented 5% of exports with eight companies. By 2023, this rose to 42% of exports, with ninety-three companies generating 56,000 direct jobs, 54% of which are held by women.

Impressive Export Figures and Investment Potential

Last year, the medical device industry in Costa Rica generated exports worth US$7.624 billion to markets such as the United States (66%), the Netherlands (12%), and Belgium (7%). These figures underscore the significant opportunities for continued investment in the country. Currently, Costa Rica receives less than 1% of the global Foreign Direct Investment (FDI) generated for the Medical Devices and Life Sciences Cluster, indicating a vast potential for growth and investment.

“In 2023, Costa Rica received US$3.7 billion, indicating the country’s significant potential to attract more investments. However, the medical device industry in Costa Rica is currently grappling with the challenge of strengthening and increasing its pool of specialized human capital,” emphasized Guillermo Zúñiga, Director of Commercial Intelligence at the Costa Rican Foreign Trade Promotion Agency (PROCOMER), during his presentation as a speaker.

Growing Global Reputation and Value Proposition

Experts highlighted that Costa Rica has become a leading destination for foreign direct investment. In 2022 and 2023, the country received 12.7 times the expected amount based on its Gross Domestic Product (GDP), demonstrating its strong value proposition.

Laura López, General Manager of PROCOMER, stated that the Medical Device manufacturing sector has put Costa Rica on the global map. “It is a sector that generates over 40% of exports, transfers knowledge, and provides high-quality, well-paid employment. It has made us the leading per capita exporter in the continent.”

PROCOMER’s Support and Strategic Initiatives

“PROCOMER has been working on initiatives to promote the medical device industry in Costa Rica, including developing suppliers, providing non-repayable funds, training, business matchmaking to find synergies, and recently launching a trust fund to develop human talent,” López added.

Authorities and sector leaders agree that strengthening alliances and promoting supplier development programs in the medical device industry in Costa Rica are essential to propelling the country into a new wave of growth.

Future Challenges and Opportunities

“We have defined a strategy and a plan to follow, always seeking to expand the supplier base in Costa Rica. We face a significant challenge as the medical device industry in Costa Rica continues to grow, creating great opportunities for local suppliers,” said Gilberto Romero, Coordinator of the Supplier Subgroup of the Medical Devices Cluster.

Successful Industry Event

The first edition of the Costa Rica MD Summit gathered over 160 companies, including original brand manufacturers, contract manufacturers, transnational and local suppliers, industrial park developers, and service providers.

In conclusion, Costa Rica’s medical device industry is poised for remarkable growth, driven by its transition from textile manufacturing to advanced intelligent production. The sector’s impressive expansion is evident from its significant increase in export contributions and the creation of thousands of jobs, particularly for women. With export values reaching US$7.624 billion and substantial investment potential, the country has emerged as a critical player in the global medical device market. PROCOMER’s strategic initiatives, such as fostering supplier development and human capital, underscore Costa Rica’s commitment to advancing this sector. As the industry continues to flourish, strengthening alliances and enhancing local supplier capabilities will be crucial for sustaining growth. The Costa Rica MD Summit exemplifies the collaborative spirit fueling this success, bringing together diverse stakeholders. Looking ahead, Costa Rica’s medical device industry is well-positioned to leverage its growing reputation and economic impact, contributing to national and global health advancements.