This document provides a summary of Costa Rica's medical device sector and its role in global value chains. Some key points: - Costa Rica is now the 2nd largest exporter of medical devices in Latin America and the 7th supplier to the US market. It has attracted major medical device companies to establish operations through its skilled workforce and business environment. - Costa Rican medical device exports have grown in sophistication, from disposable products to more complex instruments and therapeutic devices. Local companies have increased domestic value-added through developing upstream and downstream linkages. - The sector supports over 100 multinational companies with a wide range of operations from manufacturing to research and development. CINDE, the national investment agency,

1. February 2014. All Rights Reserved. The facts of this report are believed to be correct at the time of publication. Please note that the contents
delivered are based on information gathered in good faith from both public and proprietary sources. As such, CINDE’s Department of Research
can accept no liability whatsoever for loss or damage arising as a result of the use of this report, either in its published or online format.

2. Costa Rica: Upgrading in
Global Value Chains

3. Agenda

Costa Rica at a Glance

Costa Rica’s MD Sector in the Global Value Chains

Get to Know Us Better

Q&As
INVESTING IN COSTA RICA

4. Costa Rica at a Glance

5. Costa Rica’s Key Indicators 2013
Location
Central America
Time Zone
GMT-6
Population
4.7 million
Labor Force
2.2 million
Adult literacy rate
96.20%
Unemployment rate
8.50%
Inflation rate
3.70%
GDP
GDP per capita PPP
US$48.5 billion
US$12,874
Sources: INEC, BCCR, IMF, United Nations, 2013.

6. Consistent Growth of Foreign Direct Investment and Exports
2013e: US$
2.3 billion
Costa Rica: Total FDI
2.5
•
1.5
•
FDI inflows have grown an average of 13.3% every
year since 2002.
FDI per capita reached US$488 in 2013.
1.0
0.5
0.0
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
Total Exports of Goods and Services
US$ Billions
US$ Billions
2.0
20
18
16
14
12
10
8
6
4
2
0
16.7
17.5
2012
2013
15.5
12.9
13.7
12.3
13.8
11.2
7.2
2002
8.1
8.5
2003
2004
9.6
2005
2006
2007
Goods
2008
2009
2010
2011
Main Destinations in 2013:
• United States (37.9%)
• European Union (17.8%)
• Asia (14.6%)
• Central America (14.0%)
Top High Tech Exported Products in 2013:
• Electronics components for microprocessors (20.9%)
• Precision and medical equipment (13.8%) a/
• Electric cables (2.3%)
Services
Source: BCCR, Procomer, 2014.
Note: a/ This sector comprises IV sets, medical prosthesis and other medical devices
e Estimated by BCCR

7. Innovation:
IP Protection:
•
Strategic location:
•
•
•
1st in
Latin America in Global
Innovation Index (39th in the
World) (INSEAD, 2013).
1st in Latin America in
Innovation and Business (WEF
2013-2014).
3rd
in Latin America in the
International Property Rights
Index
(Property Rights Alliance. IPRI
2013).
•
Close proximity to the USA, with
more than 120 flights worldwide
daily.
Access to both oceans.
The Right Conditions For Your Company:
Competitive Business Climate
Stability:
•
•
•
Safest Country in Latin
America (Latin Business
Chronicle, 2013).
1st in Latin America in the
Quality of Labor Relations
(WEF 2013-2014).
2nd in Latin American in
Political Stability (World Bank
2012).
Tax incentives offered by
the Free Trade Zone
Regime:
•
•
•
Exemption on corporate income
tax.
Exemption on withholding tax,
royalties, fees and dividends with
no time limit; & local sales tax.
Duty-free imports & exports.
Solid Utilities
Infrastructure:
•
More than 90% of electricity is
generated from renewable
sources.

8. Exceptional Access to the World’s
Greatest Markets
a/
• Market access: 2.5 billion
people and 64% of
worldwide GDP
EFTA
EUROPEAN
UNION
CANADA
UNITED STATES
MEXICO
• 87% of exports of goods
covered by FTAs
• Investment Promotion
and Protection
Agreements with 14
countries
CENTRAL AMERICA
PANAMA
DOMINICAN
REPUBLIC
CARICOM
COLOMBIA
PERU
CHILE
Preferential access
Note: a/: European Free Trade Association
CHINA
SINGAPORE

9. Best
Educational
System in Latin
America
Second in Talent
Retention in Latin
America and 15th
Worldwide
(WEF, 2013-14)
(WEF, 2013-14)
Highest English
Proficiency in
Latin America
First in TOIEC
and Second in
TOEFL
(ETS, 2012)
Impressive
430% increase
in university
graduates
between 1991
and 2011
(Jofré, 2013)
Tertiary Enrollment
has undergone a
twofold increase
in 6 years .
Between 20052011 the enrollment
rate increased
almost 20
percentage points
(WEF, 2013-2014)
Our Labor Force: An Engine for Development
First in Latin
America in
Availability of
Scientists and
Engineers
(WEF, 2013 -14)
16 Technical and
University
initiatives carried
out over last 3
years in
High-Tech
Manufacturing
plus additional
HR initiatives
(CINDE, 2014)
High number of
people certified
in: 5s, SixSigma, Lean
Manufacturing,
ISO 13485, ISO
9001:2003, ISO
14000
Government
invested
US$450 million
in Human
Capital
Initiatives in
2013
(IADB, WB)
Costa Rica
Multilingual
A
comprehensive
program to
become a
bilingual country
by 2017

10. Costa Rica’s MD Sector in
the Global Value Chains

11. Costa Rica: A Growth Platform
for Medical Device Companies
Key Facts
2nd largest exporter of
medical devices in Latin
America.
7th Supplier of Medical
devices of the United
States.
Presence of 5 global
cardiovascular leaders.
Manufacturing PMA Class
III devices.
Exporting finished goods
to worldwide markets.
Product Upgrading
High Quality Medical Devices Making
Increase in product
complexity, from
disposables to instruments
Quality culture has helped
and therapeutic devices.
manufacturers to meet and
satisfy performance
metrics, FDA and other
international regulatory
body requirements.
Forward & Backward
Linkages
2009-2012 upstream
(inputs) and downstream
(sterilization) firms
established.
Increased in capabilities &
domestic value-added.

12. Sophistication of Operations
Low cost labor
Supply chain
Manufacturing
Assembly
Design and
engineering
Access to highly
Skilled labor pool
Research &
Development
MD Value Chain
•Distribution
•Manual through
fully automated
Assembly
•Procurement
•Packaging
•Shared Services
•Sterilization
•Silicone & Plastic
Extrusion
•Plastic & Extrusion
Molding
•Precision
Metalwork
•Weaving/Knitting
Textiles
•Tipping
Source: CINDE, 2014
•Product Design,
Verification &
Validation
•Process Design,
Verification &
Validation
•Automation
•Protocol Validation &
Verification
•Regulatory
submission and
documentation
•Prototyping
•Sustaining
Development

13. Evolution of Costa Rican MD Exports
Costa Rica: Medical Devices Exports
US$ millions
1,500
1,200
900
600
300
0
Disposables
Medical & surgical instruments
Therapeutics devices
Source: CINDE based on data from PROCOMER, 2014
Diagnostic equipments

14. Neuroendovascular
Neuromodulation
Cyberonics (CYBX)
2012
Dental
Align Technologies
(ALGN)
Smith Sterling
2001
1994
MicroVention –Terumo
(TYO:4543)
2011
Optics
CooperVision
(COO)
2012
Aesthetics
Surgical Devices
De Royal
Koros USA
1996
2007
Cardiovascular/Vascular
Abbott Vascular (ABT)
Boston Scientific (BSX)
Covidien (COV)
St. Jude Medical (STJ)
Volcano (VOLC)
2010
2009
2011
2010
2010
Allergan (AGN)
Establishment Labs.
1999
2009
Endoscopy
Boston Scientific (BSX)
Horizons Intl.
2004
2005
Women’s Healthcare
Medication Delivery
Systems
Baxter (BAX)
Hospira (HSP)
Moog Medical (MOG)
1987
1999
2009
Amoena
Bayer (BAYN)
Bio TD
Hologic (HOLX)
Orthopedics/Sport
Medicine/ENT
ArthroCare (ARTC)
MicroPort
Wright Medical (WMGI)
*Year of establishment in Costa Rica
1996
2012
2012
2004
2002
2013
2010

15. We are Committed to Support the Growth of
MD Companies
FDI made by the sector
(US$ million)
New (first year investment)
Reinvestment
361.8
166.3
157
95.5
96.4
28.0
2009
2010
51.2
8.1
2011
2012
Since 2009, on average 81% of FDI in medical devices sector takes place after the first year
Source: CINDE based on data from annual companies' certification, 2013

16. Contract
Manufacturers
Exceptional Opportunity for Suppliers:
Enhance their Capabilities and Product Offering
Medical
Suppliers
Sterilization
Electronics
Metalwork
Metalwork
Molding & Extrusion
Special Finishings
Electronics
Packaging
Clean Room
Services & Supplies
Wire & Guidewire
Assembly
Resins & Polymer Materials

17. Get to Know us Better

18. How Can You Get To Know Us Better?
With over 30 years of experience, we are
devoted to promoting Costa Rica by:
• Come on a business agenda. Visit with
industry peers to discuss experiences and
opportunities.
• Participate on activities organized by
CINDE in our upcoming roadshows to the
US and Europe.
• Participate on industry events organized in
Costa Rica, such as the Life Sciences
Forum.
• Call us, email us!! We will be happy to
help!

19. Q&As

20. Contact Us
CINDE Costa Rica Toll free number from US: 1-877-992-4633
invest@cinde.org
Ph: (506) 2201-2800 Fax: (506) 2201-2867
cindeny@cinde.org
CINDE New York Ph: (212) 984-0631 Fax: (212) 220-6499
www.cinde.org

21. Thank You!