#San Jose #Costa Rica #Medical Devices #CINDE

Costa Rica: A Growing Hub for Medical Devices

In recent years, Costa Rica has transformed into a principal player in the global medical device industry. Since 2017, the country has witnessed a remarkable expansion, with exports increasing by an average of 18% annually. This impressive growth trajectory underscores Costa Rica's burgeoning role as a strategic hub for medical device manufacturing and exportation, carving out a prominent position in the global marketplace.

A Robust Growth Story

The significance of Costa Rica's medical device sector cannot be understated. By 2023, the value of its medical device exports reached over $7.5 billion, affirming its status as the second-largest exporter of medical devices in Latin America, and the fifth-largest supplier to the United States. Such progress is a testament to not only the diversification and sophistication of the sector but also a targeted approach that has attracted leading global medical technology companies.

Currently, 14 of the 30 major multinational corporations in this field have established operations within the country. Marianela Urgellés, Managing Director of CINDE, highlights Costa Rica's unique value proposition for investors, emphasizing a reliable and sophisticated platform that seamlessly integrates economic growth with public-private collaboration and a commitment to sustainability.

This favorable ecosystem has seen production capabilities grow from just five areas of specialization to sixteen in the span of 23 years. Among these are critical areas of focus, including cardiovascular, respiratory, neuro-endovascular, and orthopedic devices.

Evolving Manufacturing Ecosystem

The medical device ecosystem in Costa Rica is witnessing continuous evolution. The number of companies in this sector has increased from 67 to 86 since 2017, leading to a jump in job creation from 22,399 to over 55,000 by 2023. Original Equipment Manufacturers (OEMs) have surged by 39%, while exports have doubled and job growth has spiked by 127%. Notably, 42% of OEM exports in 2023 comprised precision and medical equipment products, significantly up from 26% back in 2017.

This growth reflects Costa Rica's capacity to handle advanced manufacturing processes, supported by specialized free trade zones that uphold rigorous standards of quality and efficiency.

Key Drivers and Challenges

Costa Rica's emergence as a medical device export powerhouse is fueled by several advantageous factors. The country enjoys a climate of political stability, a well-defined regulatory framework, and access to a highly specialized talent pool. The existing robust ecosystem allows multinational firms not just to set up but to thrive by providing a wealth of raw material suppliers and essential services necessary for establishing and expanding their operations.

However, Costa Rica faces stiff competition from Asian countries and other emerging markets. Although it ranks third on the FDI Global Greenfield Investment index, the country must not only focus on attracting foreign investment but also on maintaining it for sustainable long-term growth.

CINDE is preparing to showcase Costa Rica's unmatched value proposition to life science investors at the MDM West 2025, North America's leading trade fair. Partnering with BAC, the nation's largest private bank, CINDE aims to solidify its claims as a key player in creating a thriving business climate conducive to new investments.

Innovation: The Future Frontier

With the steady growth and sophistication of the medical device sector, Costa Rica has positioned itself to engage in increasingly complex manufacturing processes within the global value chain of life sciences. The country has advanced beyond just assembly, now partaking in the design, development, and rigorous testing of Class III medical devices which necessitate intricate precision and substantial certification.

Going forward, Costa Rica aims to cement its role as an integrated hub for research, development, and advanced manufacturing. Achieving this ambitious vision will require continued collaboration between the public and private sectors to foster a stable environment that prioritizes quality, innovation, and sustainability.

The prospects for Costa Rica within the medical device arena appear exceedingly promising. The nation's strategy to emerge as a leader in export volume coupled with high standards of production will ensure its position as a vital partner in the global medical technology landscape. With the support of CINDE and its partners, the path ahead is one of potential and growth, ready to embrace the challenges and opportunities that lie within the dynamic medical device industry.