The investment climate in Costa Rica is exceptionally favorable, thanks to a combination of winning factors that make the country an attractive destination for foreign direct investment.
COSTA RICA INVESTMENT SPOTLIGHT
Costa Rica has maintained enviable political and economic stability, backed by a solid institutional framework that guarantees legal security and investor protection.
With a growing global reputation, Costa Rica is regarded as the most politically stable country in Latin America, another factor that ensures a solid investment environment.
Additionally, the country has positioned itself as a leader in sustainability, adopting progressive policies to foster a green economy, which attracts companies that seek to align with these values.
With the objective of being more competitive internationally and more attractive for foreign direct investment (FDI), Costa Rica has also opted for special export regimes to provide benefits and legal certainty to companies and encourage exports from the country.
However, as in any market, there are challenges. The global competition for attracting investment is fierce, and Costa Rica faces the need to continue innovating its policies and value proposition to remain competitive.
Q&A WITH MARIANELA URGELLES, MANAGING DIRECTOR, CINDE
CINDE is a private, non-profit organization founded in 1982 with the mission of attracting FDI to the country. We speak to Marianela Urgelles, Managing Director, about the potential of the life sciences industry and the role of new technology in the nation’s future.
Firstly, could you introduce us to CINDE and your vision and mission?
Marianela Urgelles, Managing Director (MU): Our focus is on promoting the country’s socioeconomic development by generating quality jobs and fostering innovation.
To date, CINDE has been globally recognized for its success in positioning Costa Rica as an ideal destination for investment in strategic sectors such as life sciences, technology, advanced manufacturing, and corporate services.
Our vision is to consolidate Costa Rica as a world-class investment hub, offering a competitive and sustainable business environment. At CINDE, we firmly believe in the transformative power of investment to improve the quality of life for Costa Ricans and promote inclusive development nationwide.
As one of the country’s most important economic sectors, how has the life sciences industry developed in Costa Rica in recent years?
MU: The life sciences industry in Costa Rica has experienced remarkable growth in recent years. Currently, more than 90 companies in this sector operate in the country, including global leaders in MedTech, pharmaceuticals, and BioTech.
This growth has been driven by a combination of highly skilled talent, advanced infrastructure, and a regulatory environment that favors innovation.
Costa Rica is now the second-largest exporter of medical devices in Latin America, with products ranging from orthopedic implants to diagnostic devices. The country has developed a robust ecosystem that includes R&D centers as well as a network of local suppliers that meet the most stringent industry standards.
This environment has enabled companies not only to manufacture but also to innovate and develop new products from Costa Rica.
What converging technologies are leading the future of life sciences, and how is Costa Rica getting the most out of them?
MU: Converging technologies such as artificial intelligence (AI), BioTech, and robotics are transforming the future of life sciences globally, and Costa Rica is no exception.
The country has been investing in developing capabilities in these areas, recognizing their potential to revolutionize sectors like healthcare, medical device manufacturing, and pharmaceuticals.
For instance, AI is being used to improve efficiency in the manufacturing of medical devices, while BioTech is opening new opportunities in the development of personalized treatments.
With its focus on innovation and skilled human talent, Costa Rica is well-positioned to capitalize on these opportunities.
Equally, what major investment opportunities are being generated in Costa Rica by the current technological convergence?
MU: Technological convergence is creating new investment opportunities in Costa Rica, particularly in sectors like BioTech, advanced manufacturing, and AI. The country has proven to be a leader in the adoption of new technologies, making it an ideal destination for companies looking to innovate and develop next-generation products.
Moreover, Costa Rica has been working on strengthening its digital infrastructure and promoting policies that facilitate investment in technology. This includes tax incentives for R&D, as well as training programs to develop the human talent needed for these new industries.
Investment opportunities also extend to the semiconductor sector, where Costa Rica is emerging as a key player in the global supply chain.
Can you expand on why Costa Rica has become a natural choice for MedTech, pharmaceutical, and BioTech companies?
MU: Costa Rica has established itself as a natural choice for MedTech, pharmaceutical, and BioTech companies for several reasons. Firstly, the country has a highly skilled and bilingual workforce, with a focus on technical and higher education that ensures a steady flow of specialized talent.
Additionally, Costa Rica’s strategic geographic location allows for quick access to North American and Latin American markets, which is a key factor for companies looking to expand their global presence.
Another factor that makes the country an attractive destination is its commitment to sustainability. Many companies operating in the life sciences sector have corporate policies that prioritize sustainability, and Costa Rica, as a global leader in this area, offers an environment that aligns with these values.
Finally, the robust ecosystem of suppliers and specialized services, along with continuous support from CINDE and the government, ensures that companies can operate efficiently and competitively in the country.
“Education is a fundamental pillar in Costa Rica, and the country has invested significantly in developing an educational system that fosters critical thinking and technical skills from an early age”
Marianela Urgelles, Managing Director, Costa Rican Investment Promotion Agency
How does Costa Rican talent remain a key pillar in CINDE’s efforts to make Costa Rica a successful FDI destination?
MU: Education is a fundamental pillar in Costa Rica, and the country has invested significantly in developing an educational system that fosters critical thinking and technical skills from an early age.
Moreover, the culture of innovation and entrepreneurship that has been cultivated in the country has allowed young Costa Ricans to be at the forefront of developing new technologies and solutions. This has created a dynamic environment where life sciences companies can access human talent that is not only technically competent but also capable of thinking creatively to solve industry challenges.
Is there a promising future for advanced manufacturing in Costa Rica?
MU: The future of advanced manufacturing in Costa Rica presents a golden opportunity.
We expect to see continuous growth, driven by the expansion of existing companies and the arrival of new investments. The trend toward personalized medicine and the development of new technologies, such as BioTech and AI, will continue to be key drivers of this growth.
Additionally, we foresee that Costa Rica will continue to consolidate itself as an innovation hub with a focus on R&D of new products and solutions.
In advanced manufacturing, Costa Rica was selected as a strategic partner in the US Chips Act. As experts in attracting and promoting FDI to Costa Rica, we are supporting the country’s positioning as a key player within the advanced manufacturing sector by driving higher value-added processes in the industry such as microchip design, assembly, packaging, and testing.
Costa Rica is one of the best-positioned countries to compete with other destinations in Asia in the supply chain. Moreover, it ranks among the top 10 countries worldwide in terms of port operations efficiency and speed, according to the World Bank’s 2023 Logistics Performance Index.
Its logistics performance surpasses the average of upper-middle-income countries, consolidating its position as a safe and stable destination that guarantees business continuity backed by the rule of law.
Elsewhere, Costa Rica already has 20 companies linked to the semiconductor ecosystem, and a similar number of businesses that indirectly supply or are already part of it.
We are envisioning two to four projects from companies established in Costa Rica that are expanding or diversifying their operations due to the increased demand caused by the reconfiguration of the semiconductor supply chain.
Costa Rica is certainly well-positioned, but we face a great opportunity, and to seize it, there is work to be done such as continuing to specialize our human capital.
“In advanced manufacturing, Costa Rica was selected as a strategic partner in the US Chips Act. As experts in attracting and promoting FDI to Costa Rica, we are supporting the country’s positioning as a key player within the advanced manufacturing sector by driving higher value-added processes in the industry such as microchip design, assembly, packaging, and testing”
Marianela Urgelles, Managing Director, Costa Rican Investment Promotion Agency
Finally, what are CINDE’s key priorities to continue attracting and promoting investment in Costa Rica’s life sciences industry?
MU: CINDE’s key priorities for continuing to attract and promote investment in strategic sectors include the continuous improvement of the business environment, the promotion of innovation, and the development of human talent.
We are focused on strengthening the multinational ecosystem by promoting collaborations between companies, universities, and research centers. Training and talent development are a priority, and we will continue to support programs that prepare the workforce for future challenges.
Lastly, we will continue to position Costa Rica as a leader in sustainability, an increasingly relevant element for global companies.
CINDE PARTNER
