The MedTech Revolution: How Costa Rica is Shaping the Future of Life Sciences
The Life Sciences industry cluster has developed extensively in Costa Rica over the past 15 years, emerging as one of the most significant in the world by attracting leading MedTech companies globally.
Despite being a relatively small size, Costa Rica has become an attractive destination for these companies due to its skilled workforce and political stability.
We spoke with Adrián Chinchilla, Managing Partner of Amrop Costa Rica, leading executive search and board member recruitment for national, multinational, and family-owned business groups. Adrian has built extensive expertise in the recruitment of senior executives for organizations in Life Sciences, Services, Manufacturing, Consumer, Technology, and other industries.
Q: You have a diverse professional background. How have your experiences shaped your perspective?
A: I began my career in the financial industry, then developed extensive experience in real estate, which I consider my primary area of expertise. Additionally, I have a background in technology, as well as a notable experience in the public sector. I served as the mayor of my community in Escazú, which is a significant residential and commercial municipality, akin to a county in Switzerland, and gained valuable insights into public administration and governance. I have successfully run my own businesses in real estate and currently engage with organizations as a member of the Amrop Partnership. My work also includes serving as a consultant and director, providing support to boards and committees. This diversified experience allows me to view organizational challenges and opportunities from multiple angles, making me a well-rounded advisor.
Q: What are some takeaways from your time in the public sector as a mayor? What are the links between that experience and your current work?
A: Me and my team brought a different approach to running the community with efficiency and transparency. We implemented a managerial approach and executed a comprehensive re-engineering of our institution, which improved processes and accountability. This achievement allowed us to quickly increase our income and give back to the community through various projects.
Fulfillment in public service stems from the opportunity to generate well-being for people. I find that same sense of fulfillment through the executive search, by connecting my clients with outstanding professionals for whom these processes represent opportunities for both personal and professional growth. This creates a win-win outcome—for individuals, for companies and organizations, and ultimately for society as a whole.
A: Foreign investment in Costa Rica has grown rapidly over the last 20 years, and life sciences is one of the main and most successful sectors, particularly the MedTech sector. The surge in leadership demand from that sector arose because, in a small country and economy like ours, the talent pool is limited. Therefore, they need specialized firms like Amrop to attract the right talent to their organizations. As a result, I have been working more and more with that sector in recent years.
Q: What do you think caused the boom of the MedTech sector?
A: Costa Rica is a fascinating country - although quite small, it stands out in its quite turbulent neighborhood in Latin America. It is recognized for various reasons – first of all, it is very peaceful nation. We don't have an army; we are one of the few countries in the world without one. Secondly, 78 years ago, we as a society decided to invest those funds in education and healthcare, and this decision had a direct impact on our society, helping to reduce social gaps and enhance the competitiveness of our human capital in the region. We also have a strong commitment to protecting nature - one in every four square meters in Costa Rica is designated as a national park or reserve. This dedication attracts a significant amount of foreign investment, particularly in tourism. Foreign companies are drawn to Costa Rica for its political stability and the quality of our talent. Additionally, the tax benefits available here play a crucial role: organizations look for competitive environments, which is why many choose Costa Rica.
Q: Does this go hand in hand with innovation in the MedTech sector?
A: Yes, we have a vibrant entrepreneurial ecosystem and innovation cluster among Costa Ricans. Larger firms often establish relationships with small companies to create mutually beneficial collaborations. This dynamic contributes to Costa Rica's success in attracting foreign investments, making it one of the leading countries worldwide in this regard. In fact, we have been ranked as the number one country for foreign investment on three occasions over the last ten years, competing with countries such as Ireland, Israel, and others... Among the various sectors, MedTech is currently experiencing the most significant growth, making it a vital area for engagement.
Q: Do you see any shifts in the sector? What is influencing these shifts?
A: The main trend in businesses today is putting people at the center as the number one strategic component, not only in MedTech but across various industries. This focus on people includes not just clients but also collaborators, vendors, and stakeholders. This shift creates dynamic environments that foster continuous improvement and innovation. Companies, especially in MedTech, are thriving because they are developing innovations that the market readily absorbs. There is significant demand in the healthcare system worldwide, and it is encouraging that this industry can deliver such benefits to its clients. These companies are experiencing rapid growth and change, with change being perhaps the most crucial element. This transformation can stem from innovation and new collaboration methods. One of the benefits of being part of the Amrop Partnership is our ability to support clients in multiple countries - collaborating with partners who understand the client's culture is essential. This connection allows us to provide stronger support and add more value.
Q: Are there any challenges in terms of talent that these companies face?
A: As these companies grow and seek competitiveness, they often move their operations from one country to another, necessitating the establishment of collaborative environments. For instance, some components of a product may be manufactured in different countries, with another country responsible for assembling them into a final product. This interdependence requires a highly collaborative atmosphere among all involved companies. In particular, operations in Costa Rica are subject to frequent changes in work dynamics, which is why the talent companies seek is quite different. They are looking for leaders who lead by example - individuals who can balance strategic and tactical thinking, vision and execution, and who are comfortable with change. They need people who thrive outside their comfort zones, as the landscape is continually evolving. Consequently, there has been a lot of movement within these organizations, prompting them to seek talent with these capabilities. This is why our market, and especially our firm, is so active.
Q: Would you say they are looking for specific expertise in tech or medicine, or is it more about the leadership skills you mentioned?
A: It’s definitely a combination. They need people with substantial experience in the technical core of the business, particularly engineers with a solid education and extensive experience. Technical expertise remains a significant factor in this industry. I would say the ideal balance is perhaps 50/50 - 50% strong technical skills and 50% soft skills. The soft skills should include abilities related to continuous learning, adaptability to change, and collaboration in diverse environments. This balance is essential.
Q: You said that larger companies in the MedTech sector are creating partnerships with smaller startup companies, which is very interesting.
A: One of the main reasons large companies seek to establish a presence in different countries is to access a local ecosystem of innovation and entrepreneurship. While these big organizations invest significantly in research and development, they are often consumed by day-to-day operations, and it's unrealistic to expect that all the knowledge needed to enhance their products will come from within. There are many people and companies outside that are doing interesting work, which is why collaborating with smaller companies in the ecosystem is highly valuable. In the MedTech industry, for example, larger companies sometimes rely on external firms to supply different components, which can often be produced more efficiently this way. By engaging with small companies, they can form new partnerships that lead to innovative solutions - some differentiators in the components of their med tech devices. They can change or challenge their current ecosystem of vendors that provide different components and that gives them a competitive advantage.
Q: Could you give an example of the types of products involved?
A: We work with a local company called Establishment Labs, which in about 15 years has grown into a significant player in the global industry and is now publicly traded on the New York Stock Exchange. They manufacture breast implants using innovative materials focused on women’s health and experiences, recognizing that women have diverse needs. Some women lead more active lifestyles or face specific health issues, such as breast cancer, so Establishment Labs develops different materials to address these varied needs. Their approach is very client-centric; they understand that not all women have the same requirements regarding breast implants. Besides, having a strong innovation-driven culture, they also created a new procedure for implanting their devices. Now it takes only 15 minutes to perform the procedure, compared to hours for more invasive surgeries that required general anesthesia. This transformation has made the procedure minimally invasive and efficient. Establishment Labs serves as a prime example of how the innovative ecosystem of local firms in Costa Rica is thriving. They entered the U.S. market just a year ago, and today, they are one of the worldwide leaders in the breast implant industry, a remarkable success story.
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