Long recognized for its strengths in manufacturing and distribution, Puerto Rico is looking to capitalize on its positive attributes and position itself as a centre for innovation. While important tax incentives have provided stimulus for R&D, the US territory is also working on building a strong local ecosystem, developing and retaining its qualified talent pool, and forging strategic partnerships.
Attracting Investment
Puerto Rico has a lot going for it. As a US territory with easy access to the North American and LatAm markets, it has distinct advantages as an investment destination. Leveraging these advantages, pharma companies have long held manufacturing operations there. But the territory has continued to develop its biopharma hub status by attracting not only manufacturing, but also R&D activity. “Puerto Rico has evolved into a dynamic and globally competitive leader in the pharmaceutical and biosciences sectors,” asserts Ella Woger-Nieves, CEO of Invest Puerto Rico, the government mandated privately led non-profit tasked with positioning Puerto Rico as a competitive investment jurisdiction globally. “Today, Puerto Rico offers a unique value proposition: the ability to support the entire lifecycle of innovation, from research and development (R&D) to full-scale commercialization, making it a premier destination for companies looking to scale globally.”
Major tax advantages have helped to encourage innovation. “Puerto Rico offers exceptionally appealing tax incentives for pharmaceutical companies engaging in research and development,” Amarilys Silva-Boschetti, executive director of the Puerto Rico Consortium for Clinical Investigation (PRCCI), an organization that offers specialized services for conducting clinical studies in Puerto Rico, confirms. “Currently, companies can receive a tax credit of up to 50 percent on their investments in Puerto Rico, contingent upon presenting data that supports the impact of R&D investments.”
Yet for Woger-Nieves attractive tax incentives are not the island’s only appeal. “Puerto Rico is a land of opportunity and innovation. Its highly skilled workforce, advanced infrastructure, and commitment to fostering innovation create an unparalleled environment for businesses to thrive.”
Building Talent
As the CEO of Invest Puerto Rico points out, there are plenty of qualified professionals in Puerto Rico. “The island boasts the highest concentration of pharmaceutical and medical device professionals in the United States, produces the largest number of Hispanic engineers, and leads the nation in the percentage of its workforce employed in science, technology, engineering, and mathematics (STEM) fields. This educated and highly skilled workforce is one of Puerto Rico’s most valuable assets.”
Yet much of the territory’s talent continues to be lured away by opportunities in mainland United States or elsewhere and curbing this brain drain is a priority for the organizations helping to build its life sciences sector.”Historically, many of our STEM graduates have sought opportunities outside Puerto Rico,” attests Lucy Crespo, CEO of Puerto Rico Science Technology and Research Trust, a private non-profit organization aimed at encouraging innovation. “However, we are seeing improved retention as we create an environment that encourages them to stay. We are actively working to provide attractive opportunities.”
“By expanding opportunities in cutting-edge research, development, and biotechnology, the island ensures that skilled graduates and professionals can build rewarding careers without needing to leave,” agrees Woger-Nieves. For Silva-Boschetti, an important aspect of developing the territory’s clinical research ecosystem is developing talent, something the PRCCI is actively involved in. “We have trained over 220 clinical research professionals in Puerto Rico, and I am proud to say that all of them are currently employed,” she affirms. “This success underscores the growing demand for trained individuals in clinical research.”
Ivan Lugo-Montes, executive director of the Puerto Rico Bioscience Cluster, INDUNIV, feels that developing the local workforce is central to the work of INDUNIV, an organization that builds collaboration between academia, industry and government. “One of our primary strengths lies in our commitment to advanced STEM education and innovation. We collaborate with universities and form advisory committees that focus on enhancing the competencies of our workforce, he maintains. “This initiative involves developing state-of-the-art laboratories and educational programs that ensure our talent is equipped for the future. By continually assessing the evolving needs of the industry, we strive to prepare our workforce for the next wave of opportunities.”
Meanwhile, Puerto Rico recognizes “the importance of reconnecting with its diaspora—talented Puerto Ricans working abroad who are eager to return if presented with meaningful opportunities,” says Woger-Nieves. “Puerto Rico now offers opportunities that match the qualifications of PhD holders and other highly trained individuals in cutting-edge fields. Stories of professionals returning to pursue fulfilling careers on the island highlight the success of these initiatives, showcasing Puerto Rico as a place where top-tier talent can thrive.”
Partnerships
Partnerships, such as the one developed with the New York Office of State and Tourism aimed at accelerating life sciences ecosystems, have also proved to be key. “This partnership is led by the governors of NY and Puerto Rico with the Puerto Rico Science Trust designated to lead the technology and innovation aspects, says Crespo. We are working closely with IndieBio, the largest life sciences incubator in New York, and we are in the process of establishing similar capabilities in Puerto Rico to support the growth of new start-ups in this field.”
Within the realm of talent, partnerships are also vital. “By fostering meaningful collaborations and aligning with international organizations such as the International Union of Pure and Applied Chemistry (IUPAC), we ensure that our members adhere to global best practices, engage in knowledge transfer, and drive continuous innovation, says José A. Pérez Meléndez, president of the educational institution Colegio de Químicos de Puerto Rico (CQPR). “Through these comprehensive efforts, we aim to solidify Puerto Rico’s standing as a hub for excellence in the chemical sciences.”
The organizations supporting Puerto Rico’s consolidation also focus on building bridges for companies looking to set up operations there. “We assist companies in navigating the local landscape, connecting them with the right individuals and resources to establish operations in Puerto Rico. For 21 years, we have actively participated as the BIO affiliate representing PR in the Bio-International Convention,” Lugo-Montes confirms.
Recognition
Perhaps one of the most crucial factors contributing to building the island’s status as a life science powerhouse is recognition. “A significant milestone occurred last October when the Biden and Harris administration designated Puerto Rico as one of the Economic Development Administration’s (EDA) technology hubs. Out of over 400 applicants, Puerto Rico was one of just 31 selected, with a focus on life sciences and biosciences,” Crespo stresses.
Other cornerstones driven by the Puerto Rico Science Technology and Research Trust include the funding achieved to build the first life sciences incubator in Puerto Rico, BioLeap. “This was incredibly significant for us, as Puerto Rico has long been recognized for its strengths in manufacturing and distribution,” says the organization’s CEO.
Invest Puerto Rico has also seen recognition for the strides it has made in advancing the island’s economic development and global positioning, securing commitments for some 25,000 jobs and over USD 2 billion in investments. “The organization’s efforts have garnered recognition, with Invest Puerto Rico receiving five awards for excellence in economic development from the International Economic Development Council. These accolades highlight its growing credibility as a leader in the field.”
