10.05.11
More that frosty rum drinks and balmy breezes, the island of Puerto Rico offers a base for medical device manufacturing—and has for many decades. But with increased competition from other areas of the world, Puerto Rico has had to step up its economic development game to remain competitive. According to the Puerto
Rico Industrial Development Company (PRIDCO), more than $5 billion in shipments of medical devices from more than 30 device companies leave Puerto Rico each year. To keep that number of devices flowing out, medical device companies take advantage of a number of incentives.
Last year, for example, Puerto Rico’s government enacted Law 73, which provides up to a 50 percent tax credit for qualified research and development expenses for new technology developed there.
Victor Merced, PRIDCO’s business development officer for life sciences, told MedicalDeviceNow that a new incentive plan is being offered to medical technology firms that are currently manufacturing in Puerto Rico or are looking to add a facility in the commonwealth. In an effort to solidify its existing base of suppliers, the government will reimburse medtech companies between 10 and 20 percent (depending upon the complexity of the services provided by the supplier) of the cost of qualifying local supplier companies. This is coupled with a 25 percent tax credit on the purchase of locally manufactured products.
According to Merced, the new program is show of good faith in Puerto Rico’s
stable of supplier companies, but it also serves as a reminder to those companies to maintain their “A-game” as well as to continually add new capabilities.
“Medical device companies that come to Puerto Rico want to see a wide range of services from suppliers that are highly qualified,” Merced noted. “We’re telling medtech companies we’ve got the talent here, and we’ll do what we can to help [supplier] companies stay competitive.”
The recipe must be working.
Minneapolis, Minn.-based Medtronicrecently announced plans to add about 200 workers to its facility in Juncos. The company is planning to invest $50 million into expanding its Puerto Rican operations during the next three years. Medtronic first established roots in Puerto Rico more than 30 years ago. Medtronic currently manufactures a wide range of high-tech devices in Puerto Rico—from insulin pumps and diabetes equipment to defibrillators and other cardiovascular technology.
Rico Industrial Development Company (PRIDCO), more than $5 billion in shipments of medical devices from more than 30 device companies leave Puerto Rico each year. To keep that number of devices flowing out, medical device companies take advantage of a number of incentives.
Last year, for example, Puerto Rico’s government enacted Law 73, which provides up to a 50 percent tax credit for qualified research and development expenses for new technology developed there.
Victor Merced, PRIDCO’s business development officer for life sciences, told MedicalDeviceNow that a new incentive plan is being offered to medical technology firms that are currently manufacturing in Puerto Rico or are looking to add a facility in the commonwealth. In an effort to solidify its existing base of suppliers, the government will reimburse medtech companies between 10 and 20 percent (depending upon the complexity of the services provided by the supplier) of the cost of qualifying local supplier companies. This is coupled with a 25 percent tax credit on the purchase of locally manufactured products.
According to Merced, the new program is show of good faith in Puerto Rico’s
stable of supplier companies, but it also serves as a reminder to those companies to maintain their “A-game” as well as to continually add new capabilities.
“Medical device companies that come to Puerto Rico want to see a wide range of services from suppliers that are highly qualified,” Merced noted. “We’re telling medtech companies we’ve got the talent here, and we’ll do what we can to help [supplier] companies stay competitive.”
The recipe must be working.
Minneapolis, Minn.-based Medtronicrecently announced plans to add about 200 workers to its facility in Juncos. The company is planning to invest $50 million into expanding its Puerto Rican operations during the next three years. Medtronic first established roots in Puerto Rico more than 30 years ago. Medtronic currently manufactures a wide range of high-tech devices in Puerto Rico—from insulin pumps and diabetes equipment to defibrillators and other cardiovascular technology.
