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Costa Rica Business News: Costa Rica provides high-tech niche in the global sourcing universe
By David Hannon
Nov 27, 2007, 06:03

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Costa Rica Business News: Costa Rica provides high-tech niche in the global sourcing universe

Investments in education and development make this Central American nation a hotspot for high-tech companies and suppliers.

Costa Rica's recent vote and approval of the Central America Free Trade Agreement has put the nation of 4 million people in the spotlight as a potential trade partner for U.S. firms. But savvy global companies—and even savvier buyers—have considered this hidden high-tech gem a prime location for sourcing opportunities for more than a decade.

If your picture of Costa Rica is one of banana trees and coffee plantations, it's time to upgrade to a digital camera. While agricultural products remain a major export of Costa Rica, this country has rapidly become a growing pocket of high-tech expertise in Central America. Much of the high-tech focus started in 1996 when semiconductor giant Intel decided to locate a plant here. Two years later electronics was the largest contributor to the country's manufacturing output, capital investment, employment and exports with more than 11,000 employees.

According to the Los Angeles Times, by 2006 the information technology and medical device manufacturing industries in Costa Rica employed about 30,000 workers in more than 300 companies, with most of that business materializing in the last decade.

"Costa Rica has shifted its economic focus from traditional manufacturing common to Central America such as textiles to more value-added industries like electronic components and medical devices," says Jaime Quintana, vice president and regional director for global logistics firm DHL Express in Central America. "Costa Rica's government is very focused on attracting outside investment. Foreign businesses can get easier access to government officials in Costa Rica to set up businesses than in many other countries in this region."

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