Industry overview Human Resources Infrastructure Strategic location Incentives Main location of electronic companies Testimonials Established companies Electronic, electromechanics, metalwork and injection molding contractors

The opportunity

Industry Overview

Costa Rica's success in attracting foreign direct investments into the electronics industry relies on a combination of factors: a well educated, multitask and productive workforce at all levels from operators to engineers and management, positive cost/benefit relation, reliable infrastructure, friendly-business environment and a committed government to make things happen.

From a couple of pioneer companies established during the late 70's, the industry stands today as the largest contributor to the country's manufacturing output, capital investment, employment and exports. Along with these pioneer MNCs there are currently more than 50 companies employing over 11,000 direct people and export value of US$2.120 million in 2005.

Source: PROCOMER

Human Resources

Costa Rica provides for a wide range of human resources for the electronics industry, from operators to engineers in addition to its well-known strategy of strengthening education, computer literacy and information technology to accelerate its growth and income levels. With a literacy rate of 94.9% and some of the highest rankings in the several indexes of human development in the hemisphere, as stated in the Human Development Report 2006, Costa Rica offers an ideal location for high tech companies.

Education in Costa Rica is universal, free and compulsory since 1870. Elementary schools promote a new approach to education that goes beyond teaching how to read and write, and have established programs intended to guarantee world-class literacy in computer sciences and English as a second language. In fact, 82.5% of all Secondary Education students, and 50% of all elementary students have computer-based education. English as a second language is nearly universal in Secondary Education. The Government has put special interest in providing increased resources to enhance existing English programs and create additional ones nationwide. As a result, a unique, free and widespread education system allows firms to find a wide array of human resources at various levels, from technical schools to university degrees.

At a technical level, free training programs have been developed in order to address appropriately the requirements of both local and international corporations in specific sectors, therefore allowing Costa Rican technicians not only to work on the cutting edge of technology but to maintain at the same time a productivity rate which is 20% higher than that of workers of other countries in the Americas. The leading educational centers offering this type of training, as well as the main universities are: 

Costa Rican engineers and technicians guarantee high productivity, low turnover, and cost competitiveness to highly demanding high-technology operations. The electronics sector directly employs 11,000 workers. The talent base ranges from operators to technicians, engineers and managerial staff.

Infrastructure

Telecommunications

Costa Rica has direct worldwide access through both the international Maya 1 and Arcos 1 underwater cables, thus permitting a redundant fiber optics network.

The initial capacity of the Maya 1 cable connection is 7.5 Mbps with full capacity of 20 Mbps. In the case of Arcos, initial capacity amounts to 15 Mbps and was capable to expand to 1109 Mbps in 2003. In addition, starting in October 2006, a new Global Crossing 2,4 Gbps submarine cable will be available for companies interested in networkin g or receiving redundancy through the Pacific. International communication services are provided through a wide variety of set - ups to match specific customer needs. Some of these are:

• Dedicated Internet Access
• Digital point-to-point links
• Transportation Networks with fiber and wireless digital technology (Frame Relay, TDMA)
• Leased Channels using satellite facilities (RACSASAT)
• VSAT networks
• X.25 networks

Detailed information about specific telecommunication services can be found in this same site through the following link

Infraestructure/Telecommunications

Electrical Power

Abundant and reliable power, available throughout the country, is generated through hydroelectric (92%), geothermal (7%) and other sources (1%). Costa Rica generates sufficient electricity to not only fulfill its own domestic needs, but also to export electrical power to other neighboring Central American countries. According to the National Electric Company (ICE), the total installed energy capacity as of 2004 was approximately 1,756 MW, with a maximum demand of 1,221 MW and a surplus availability of more than 500 MW. Detailed information about specific energy services can be found in this same site through the following link Infraestructure/Electric Energy

Strategic Location

Costa Rica is strategically located in the center of the Americas , providing excellent market access to the USA . In fact, there are 25 daily flights to that country, and Miami is only 2.5 hours away. Besides its geographic proximity, Costa Rica counts on excellent duty free entrance to the US and European Union markets, as well as to other important markets through free trade agreements. The Costa Rican government has currently signed and is in the process of ratifying a free trade agreement with the USA .

More on Costa Rica's strategic location

Incentives

Special incentives regimes have been an important complement for the development of the electronics industry in the country. Detailed explanation about the benefits and incentives available for foreign manufacturing operations can be found at the following link: Types of Incentive Regimes

Established companies

Costa Rica Provee
Costa Rica Provee detects the needs of multinational companies, identify business opportunities, and recommends registered suppliers meeting the production, technical, and quality specifications and characteristics required by the business at hand.

What they say:

"...Costa Rica continues to be a strategic site for us and now our best products are manufactured here. I believe this speaks for itself..."
Paul Otellini, President and CEO, Intel Corpor

"Over the past 5 years, our activities in Costa Rica have gone from a small satellite facility to the primary manufacturing center for our global operation. As most companies drawn to the region, we were initially attracted to a lower cost center when compared to the US. The keys to our success rest largely in the talented workforce that is available in Costa Rica, as well as a proactive government and a good logistical position for our needs. Now, looking forward, we regard out expanding operation in Costa Rica in terms of increasing value and not decreasing cost."
Michael Tucci, President, The Micro

"Bourns Inc. is extremely proud of our presence in Costa Rica based upon the eagerness from all our manufacturing team to apply the lean tools and commitment to continue becoming stronger and sustain our World Class Manufacturing position. We have a great educated workforce committed to out foundation in mutual trust and respect building the integrity of our company to our customers for the last 60 years. "
Mario Zuchovicki, Vice President and General Manager, Bourns Inc, Resistive Products Division