By Sean Fenske, Editor-in-Chief

Due to a number of factors, medical device companies are reevaluating their manufacturing strategies and regions in which they operate. Rapidly changing dynamics have organizations seeking to consider locations they may not have evaluated previously. In doing so, they are encountering environments with which they are unfamiliar, such as trade or free zones.

Costa Rica maintains a healthy free zone community. These parks provide a wealth of advantages to companies operating within them, including financial, logistical, and business benefits. However, it may be confusing to someone new to the region what differentiates one park from another, or why someone involved in medtech would choose one location over another.

Fortunately, Carlos Wong, CEO of CODE Development Group, the developer of Evolution Free Zone, has responded to several questions about Costa Rica, the industrial free zones, and specifically, the organization’s medtech-focused parks. In the following Q&A, he speaks about the Evolution Free Zone and the steps a company should take before settling on a specific park for their next facility.

Sean Fenske: What’s driving companies to consider Costa Rica as a region to establish a medical device manufacturing facility?

Carlos Wong: With more than three decades of experience, Costa Rica has established medical devices as its leading export sector since 2018. Today, it represents 44% of the country’s goods exports and serves as a key engine of the national economy.

For companies, the main drivers to consider Costa Rica as a location for establishing a medical device manufacturing facility include:

• A mature and consolidated ecosystem, with more than 100 medical device companies operating in the country
• A highly productive and skilled workforce
• An innovation-driven environment, aligned with U.S. time zones
• Legal certainty and a competitive tax incentive regime

As a result, Costa Rica has become a leading supplier of catheters and advanced medical devices to the U.S. market.

Fenske: What are the Free Trade Zones? What benefits do they provide?

Wong: Free Trade Zones in Costa Rica are designated areas that foster investment, industrial development, and international trade. Companies operating within these zones benefit from a regulatory framework that encourages efficiency, innovation, and global competitiveness.

The main benefits include:

Tax incentives: Exemption from corporate income tax for a defined period, along with exemptions on import duties and sales taxes for raw materials and equipment, among others.

Simplified customs procedures: Streamlined import and export processes reduce administrative burden and operational costs.

Legal and regulatory certainty: Companies enjoy a stable legal environment backed by government policies that support foreign investment.

Access to skilled labor and infrastructure: In Costa Rica, Free Trade Zones are located in regions with developed industrial ecosystems, providing access to trained professionals, logistics, and utilities.

Integration with global markets: Being part of the Free Trade Zone framework allows companies to efficiently serve international markets, particularly the U.S. and European markets.

In short, Costa Rica’s Free Trade Zones offer a secure and attractive environment for companies looking to invest in manufacturing, export, and innovation, making the country a preferred destination for medical device production.

Fenske: What is the Evolution Free Zone? Why is it primarily home to medical device manufacturing corporate residents? Is space available? Is there infrastructure for medtech?

Wong: Located in Alajuela, Costa Rica, Evolution Free Zone is a next-generation business ecosystem providing ideal and sustainable conditions for companies driving digital, technological, and smart manufacturing transformations. Home to eight medtech companies, it is the ideal partner for international business growth. Developed as a smart community with 124 hectares of land (approximately 306 acres), it fulfills the needs of a long-term plan, where welfare, transparency, and the best business practices are promoted.

As global markets evolve, the demand for future-ready operations has never been more pressing. Companies are seeking environments that not only foster innovation and efficiency but also align with sustainable development goals. At Evolution Free Zone (EFZ), we are at the forefront of this industrial evolution, creating the ideal next-generation business ecosystem for several key reasons:

Strategic Location & Connectivity: Located along National Route 1 and close to Route 32, EFZ provides seamless connectivity to Costa Rica’s primary ports and corridors, facilitating efficient logistics and distribution. The proximity to Juan Santamaría International Airport (15 min away) facilitates rapid air freight and international travel.

Smart Infrastructure and State-of-the-Art Buildings: Designed under international standards such as LEED, OSHA, FM Global, BIM, and ISO 9001, Evolution Free Zone provides companies with the best environment to enhance their capabilities and develop leading value-added products. Also, our redundant utilities and Tier III data center guarantee reliable power, telecoms, water, and advanced data infrastructure to support continuous operations. Stand-alone options and a brand-new multitenant building ready to be delivered in 2026 are part of the world-class real estate solutions Evolution Free Zone offers.

Commitment to Sustainability:  Our park is characterized by the perfect equilibrium among functionality, efficiency, and balance with nature. We are committed to minimizing our environmental footprint; fostering responsible business practices by privileging green areas and landscaping that harmonizes with the design of the buildings; investing in clean energy, including energy efficiency, renewables, electrification, and a range of clean fuels; and using water treatment plants that optimize the use of this resource by reusing it for irrigation areas.

Human-Centered Medtech Hub: With a population of 617,000 citizens and 70% economically active, Evolution Free Zone is located in a region celebrated for its exceptional talent pool, where highly skilled people are trained to deliver innovative solutions for global companies. The Western Region has enhanced its development indicators, including the expansion of academic programs at all levels, aimed at nurturing skilled talent to support business growth, with minimal competition from other medical device companies in the country.

CODE Development Group (a 100% Costa Rican company) is the driving force behind the vision of Evolution Free Zone. With over 30 years of experience in the development and management of industrial parks in Costa Rica, CODE Development Group possesses the most experienced engineering team in the country for the construction of industrial facilities and cleanrooms.

Coyol Free Zone, one of our main projects, houses the operations of 34 companies—seven of them recognized in the MPO Top 30 Global Medical Device Companies Report 2025: Medtronic, Abbott, Philips, Cardinal Health, Microvention/Terumo, Smith+Nephew, and Hologic—and offers a solid ecosystem of on-site suppliers and contractors like Confluent Medical, Resonetics, SMC Ltd., ThermoFisher Scientific, Theragenics, Steris, and more.

Companies operating from Coyol Free Zone export more than US$4.4 million annually, representing 54.9% of the Costa Rican exports in medical devices, and generating over 24,500 direct jobs that contribute to the economic growth and global competitiveness of the country.

Consistently awarded as the Best Free Trade in the Americas, in the Top 10 globally, and recognized as the Most Awarded Free Trade Zone in Costa Rica, Coyol Free Zone reflects the endorsement of a model based on excellence, innovation, and sustainability—one that generates enduring value for businesses, employees, and our country.

At the same time, Evolution Free Zone is recognized as the Fastest-Growing Business Ecosystem in Costa Rica. After only one year of operation, it is home to eight global leaders in the medtech sector: AVNA, Accudyn Products, Forj Medical, Johnson & Johnson MedTech, Segex, Stryker, Switchback Medical, and Trelleborg Medical Solutions.

Fenske: For a company considering Costa Rica for the location of a facility such as within the Evolution Free Zone, what are the first steps they should take?

Wong: Our first recommendation is to visit us and experience the view firsthand! You will be impressed by the robust ecosystem of over 100 medtech companies that Costa Rica hosts.

The next step is to define a project focused on manufacturing a product that is entering volume production or a production line suitable for offshore manufacturing. This can then evolve to include more sophisticated lines and products, ultimately expanding toward offshore services and prototyping.

For now, don’t miss the opportunity to contact us and meet our team. We will be more than happy to support you throughout your exploratory process.

Fenske: Is there assistance for companies that have not established a facility in Costa Rica previously? Who can they turn to with questions or to resolve challenges?

Wong: Yes, through our organization, as well as through PROCOMER (Costa Rica’s official investment promotion agency) and other entities available in the country, companies receive support throughout the analysis and decision-making process to establish operations in Costa Rica.

There is a well-established network of business and legal consulting firms that provide comprehensive support to companies seeking to establish and operate in Costa Rica.

Within our industrial parks, we have witnessed numerous success stories of companies that chose Costa Rica for their first expansion outside the United States, including Confluent Medical, Riverpoint Medical, Shockwave Medical (recently acquired by Johnson & Johnson MedTech), Inari Medical (recently acquired by Stryker), AVNA, and Switchback Medical, among others.

Fenske: What are common misconceptions you hear about medical device manufacturing in Costa Rica, and how do you respond to or correct them?

Wong: There are two common misconceptions about establishing a manufacturing operation in Costa Rica that come to mind.

Starting operations in Costa Rica is difficult. The proof to the contrary is the more than 100 companies that have initiated their processes and, within a short period, have fully FDA-certified operations running successfully and 100% efficiently from Costa Rica.

There is also a misconception that there is not enough talent. Since medical devices are the country’s leading export product and have a significant impact on Costa Rica’s economy, there is a strong national commitment to developing human capital. This commitment involves strategic stakeholders, including the central government, local governments, academia, and the private sector. An excellent example is the strategy implemented by Evolution Free Zone, which includes partnerships with the 10 local governments comprising the Western Region, public and private educational institutions, and companies operating within the park.

The education system in the Western Region is transforming to upskill and reskill talent to meet the needs of industry. The area is home to 17 technical schools, eight public universities, 12 private universities, five National Learning Institutes (INA), and 55 high schools. In 2025, Evolution Free Zone partnered with INA to deliver on-site technical and operational training programs in high-demand disciplines, becoming the first Free Trade Zone in Costa Rica to host an INA Center directly on its premises.

Another example is LUMINO, a platform developed by CODE Development Group to identify training needs, design tailored programs, and provide specialized training to companies in the medtech industry.

Fenske: Do you have any additional comments you’d like to share based on any of the topics we discussed or something you’d like to tell medical device manufacturers?

Wong: With three decades of dedicated experience serving the medical device industry, Costa Rica offers a mature and secure business environment, providing companies with the infrastructure and conditions to enhance competitiveness through fully integrated manufacturing operations and high-value-added production.

Today, Costa Rica hosts a robust ecosystem of over 100 life sciences and medical technology companies, including 13 of the world’s top 30 medical device manufacturers. Notably, 50% of these companies operate within the industrial parks developed by CODE Development Group, the country’s most experienced industrial developer in the sector.

CODE provides an end-to-end portfolio of complementary services, including dedicated transportation, strategic talent acquisition, targeted job fairs, an exclusive employment platform with over 200,000 active users, specialized training programs, and community and wellness initiatives—ensuring companies operating in its parks have the support to scale efficiently, maintain compliance, and drive innovation.

In the evolving global economy, businesses are increasingly seeking environments that provide strategic advantages beyond traditional models. They require integrated ecosystems that support sustained competitiveness in the face of rapidly changing market demands, and Evolution Free Zone exemplifies this paradigm.

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