#Innovation #San Jose #Costa Rica #Medical Devices

Costa Rica's Medical Device Revolution

In a remarkable transformation, Costa Rica has surpassed expectations and established itself as a leader in the global medical device industry. According to a recent analysis conducted by the Costa Rican Foreign Trade Promotion Agency (PROCOMER), the country is not only innovating but also excelling in the production and export of high-technology medical devices. Between 2020 and 2024, Costa Rica's medical device exports grew at an impressive average rate of 22% annually, culminating in an extraordinary total of $8.675 billion. This growth has elevated the nation to the position of the world's tenth largest exporter of medical devices and the number one exporter per capita.

The data gathered by PROCOMER showcases a robust economic landscape—Costa Rica accounts for 52% of all new investments in the medical device industry across Latin America. It has emerged as the third-largest global recipient of foreign direct investment (FDI) in this sector, with more than 100 companies from the United States, Germany, Ireland, Sweden, Japan, and Spain currently operating within its borders. These companies specialize in critical areas such as endoscopy, cardiology, orthopedics, ophthalmology, diagnostics, and advanced surgical solutions.

The evolution of Costa Rica's medical device sector reflects a significant shift toward a knowledge-based economy. Medical devices now represent nearly half (48%) of the total exports of goods from the country, with products being exported to markets across America, Europe, and Asia. As of October of this year, exports from this sector reached an impressive $9.199 billion, reflecting a year-on-year growth of 30% and surpassing the total exports for the entirety of 2024 in just ten months.

According to Laura López, the General Manager of PROCOMER, “Costa Rica exports a diverse range of talent, capabilities, and solutions that improve lives worldwide. This industry demonstrates our capacity for innovation and the production of cutting-edge technology knows no borders.” She emphasized the country's unique value proposition that combines stability, skilled human resources, and a strong commitment to quality, which attracts specialized investment and creates high-value products.

Currently, Costa Rica is exporting 164 distinct products within the medical device sector to 88 different markets. Notably, the exports include items such as needles, catheters, and cannulas (41.5%), various other medical devices (30.8%), and medical prostheses (14.5%). The United States remains the largest market for Costa Rican medical devices, accounting for 66.5% of the exports, followed by the Netherlands and Belgium.

A strong local supply chain is contributing to this industry’s efficiency, supported by specialized providers in areas such as molds, metalworking, plastics, sterilization, contract manufacturing, clean rooms, and precision assembly. This robust local supply chain enables efficient operational practices and strengthens knowledge transfer, raising standards in domestic companies throughout the country.

A Reliable Ecosystem for Global Investment

PROCOMER's study highlights that Costa Rica’s leadership in the medical device sector is anchored by several key components including:

• - Economic, political, and social stability
• - A renewable and competitive electric grid
• - Specialized human talent
• - High-level productive and logistical infrastructure
• - Strong local linkages
• - Three decades of experience in advanced manufacturing

This solid positioning has facilitated Costa Rica’s transition from basic manufacturing to high-precision goods featuring complex technologies. In less than a decade, the number of high-tech products exported from Costa Rica has quadrupled, solidifying the medical device sector as a structural pillar for national development. The multiplier effects are evident, leading to the creation of more qualified jobs, integrated suppliers, enhanced technological transfer, and an increasing presence of Costa Rica in global health value chains.

Moreover, the study indicates that the industry is poised for further expansion, driven by international demand, ongoing innovation, and a solid collaboration between PROCOMER, the private sector, academia, and global strategic partners. This optimistic outlook places Costa Rica at the forefront of the global medical device landscape, setting new standards for innovation and quality in healthcare products.