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 The precision and medical equipment sector accounts for 34% of the country’s exported goods - Photo for illustration purposes only - |
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Published on Tuesday, August 17,
2021
Last month, Terumo Blood and Cell Technologies announced plans to open a medical device manufacturing facility in Costa Rica, creating 700 new jobs in the country over the next year and a half, this is one of many MedTech firms expanding operations in Costa Rica. In fact, for foreign investors considering shortening supply chains to increase productivity post-pandemic, Costa Rica’s value proposition is proving difficult to ignore, according to Investment Monitor business magazine. According to the report, in 2017, medical devices became the country’s top export, overtaking the agricultural sector for the first time. Today, the precision and medical equipment sector accounts for 34% of the country’s exported goods and registered a percentage change of more than 46% from 2021’s accumulative first semester data versus 2020’s. Costa Rica is home to 12 of the top 30 global medical device manufacturing companies in 14 different subsectors, including Abbott Laboratories, Boston Scientific and Medtronic. Having successfully maintained operations following the onset of covid-19, the country’s medical device exports grew by 8% in 2020, demonstrating an impressive level of resiliency within the sector. Just over two decades ago, the country was home to eight Medtech companies – a number that has since soared to 88 multinationals employing more than 32,000 people, 52% of which are women. Total Medtech exports are currently valued at a hefty $3.9 billion, a figure that is expected to grow by 17% annually to reach $5 billion this year – an increase of more than $1.3 billion over three years. Costa Rica’s productivity in the MedTech sector has risen by 61% since 1999, with the average output per employee climbing from $76,000 to $120,000, while the country has diversified its product offering and embraced possibilities and technologies in advanced manufacturing. “Over the years, Costa Rica’s life sciences manufacturing has evolved from disposables in the early 2000s, to a wide variety of class I to III devices like surgical, aesthetics, optics and cardiovascular tools,” head of Investment Advisory Pilar Madrigal said. “Currently, the US and Europe are the main export destinations. It is thanks to the trust of these global companies that this sector has grown exponentially in Costa Rica.” Also, the country offers a wide range of experienced local suppliers that promote solid linkages and supply chain versatility. It is little wonder that a steady stream of global Medtech organizations are choosing to put down roots and expand services in Costa Rica. In June, global industrial technology leader TE Connectivity announced plans to hire more employees at its medical manufacturing plants in San José, a move indicative of the company’s wider growth strategy. The establishment of innovative organizations like this has created a specialized workforce with the expertise to meet the needs of the country’s rapidly evolving Medtech sector. In collaboration with universities and technical institutions, the Costa Rican Investment Promotion Agency, CINDE, has developed more than 40 projects for this purpose, such as a master’s degree in engineering in medical devices with TEC University and tailor-made medical devices training programs with the National Training Institute. Costa Rica also boasts a steady flow of science, technology, engineering and mathematics (STEM) graduates. According to CINDE, based on data from the National Council of University Rectors, the country will have 15,500 STEM graduates by 2023, that is 1,500 more than in 2019. The country certainly ticks a lot of boxes in this regard. Costa Rica’s geographical proximity to the U.S., Canada and Europe enables straightforward collaboration between teams, while its free trade agreements give preferential access to two-thirds of the world’s GDP. On top of this, it is well located to facilitate exports, with ports on both the Pacific and Caribbean coasts. Following years of transformational growth, Costa Rica is ready to play a leading role in defining the future of health, the report said. ------------- What other economic sector of Costa Rica should be improved? We would like to know your thoughts on this story. Send your comments to news@amcostarica.com             
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