Of the top 30 medical device brands worldwide, 14 have production plants in Costa Rica. Moreover, in a matter of 20 years, many of these factories have gone from assembling parts to research and development of cardiovascular, respiratory, neuro-endovascular and orthopedic mechanisms. These are just two facts to measure the role that these products are playing in the national economy.
The “Coalición de Iniciativas para el Desarrollo (Cinde)”, details that in 2023 the export value will exceed $7.5 billion. This translates into an average annual increase of 18% since 2017. Likewise, Costa Rica is already the second largest exporter of medical devices in Latin America, and the fifth in supplies to the United States. The entity explains in passing that in the last 23 years it managed to go from 5 to 16 areas of specialization, with the challenge of adding more competitiveness.
Costa Rica currently manufactures and assembles Class I and II medical devices. It is also advancing in the design, development and validation of Class III products, which require high levels of precision and rigorous certifications. “We have achieved high sophistication with a unique value proposition for the investor, but we can still do more,” says Cinde CEO Marianela Urgellés.
Medical devices in numbers
Since 2017, the number of medical device companies in Costa Rica went from 67 to 86. In terms of employment, Cinde quantifies a rise from 22,399 to more than 55,000.
“The number of original equipment manufacturing (OEM) companies has grown by 39% since 2017. While exports have doubled and employment is up 127%,” they detail.
On the other hand, in 2023 alone, 42% of the country’s goods exports corresponded to precision products and medical equipment, a remarkable increase compared to 26% in 2017.
Between achievements and challenges
In the equation of the positioning that Costa Rica has achieved in the medical device segment, Cinde lists:
Country stability
Defined regulatory framework
Highly specialized human talent
“In addition, it highlights a robust ecosystem that allows the end to end development of multinational companies in Costa Rica. Achieving a wide range of suppliers of raw materials, processes and key services for the installation and growth in the country,” they add.
As for competition, much of it is in the Asian market. However, nearby countries are also trying to emerge in the business format. “Although the country is ranked 3rd in the FDI Global Greenfield Investment Index, its challenge now is not only to attract investment, but also to retain it and make it sustainable in the long term,” notes Cinde.
Medical devices must now be innovative and sustainable
As in the rest of technology, devices are changing rapidly and it will depend on adaptation to remain a “magnet” for companies. “The country already has capabilities in product redesign, process automation and new product development and testing, which puts it in a strategic position to scale its participation in more complex research and development,” Urgellés detailed.
“The “next frontier” for the medical device industry in Costa Rica will be its transition to an integrated research, development and advanced manufacturing center, which will consolidate our position as a leader in a global market that demands innovation and responsibility at every stage of production,” she added. According to the spokeswoman, the challenge is to consolidate Costa Rica as a reliable and advanced strategic partner for the global medical technology market.
This work is expected to continue in 2025 and one of the first bets will be the MD&M West 2025. This is considered the most important business fair in North America in the field. The country will be present in a block that also includes firms such as BAC, Baker Tilly, Cushman & Wakefield, B Advisory and Aguilar Castillo Love to attract more investment in medical devices.
