PuertoRico is the 32 most competitive nation in the world out of 140 countries rankedin the 2018 edition of the Global Competitiveness Report published by the WorldEconomic Forum.
The Island offers incentives by Act 20 that provides tax exemptions and tax credits to businesses engaged in eligible activities in Puerto Rico.
The export of services is an economic activity that has been identified as essential for the economic development and growth of Puerto Rico. Therefore, the Government of Puerto Rico has adopted as public policy to foster a service industry geared toward the export of all types of services. In order to do so, Act 20 is focused on encouraging local service providers, through the concession of tax exemptions, to expand their businesses by offering their services to clients outside of Puerto Rico.
Puerto Rico fared well in fundamental areas that the index measures, such as financial market development (21 out of 144), labor market efficiency (46), innovation (29) and business sophistication (18), placing among the world’s 37 “innovation-driven technologies” according to the report.
Puerto Rico’s capacity to provide businesses with legal and regulatory efficiency was reflected in its 19th place ranking. At the same time, the strength of its auditing and reporting standards earned the Island the 9th place position in the index.
The Island also stood out positively in the area of protection of property rights, ranking 12th. It trailed behind some of the world’s strongest economies, namely Finland, Singapore, Switzerland, and the United Kingdom, among others. In terms of intellectual property protection, Puerto Rico landed in 9th place out of 144.
The Island also fared well in terms of its infrastructure — the quality of roads (29), port infrastructure (22), and air transport (25).
Puerto Rico is well developed and offers state-of-the-art telecom, ISP, and cellular networks all across the Island. Clients are offered the latest and best in software technology, including customized solutions for various applications such as e-commerce, business process re-engineering, system migration, legacy system maintenance, system integration, and much more. Outsourcing companies also maintain uninterrupted communication channels with clients by providing high-speed bandwidth via satellite connectivity, submarine cables and fiber optic networks.
The IT industry is supported by a stable Pro-IT Government whose policies on the economy, GDP growth, taxation, power, telecom and industrial parks have been helpful in improving infrastructure as well as communications systems. IT is regarded as one of the top priority industries in Puerto Rico, and the Government is actively reviewing its policies to strengthen the IT sector. The Government has offered its support to the IT industry by providing various tax-related and other benefits, thus recognizing its commitment to making Puerto Rico a national and global leader in information technology services and innovation.
When it comes to the information and communications technologies, Puerto Rico has a long history of excelling in this dynamic industry. Case in point is Microsoft Corporation, which first established a presence on the Island in 1990. It has continued to expand its principal manufacturing center for all Office products intended for the U.S. market. Cisco, Oracle, Hewlett-Packard and numerous other software and hardware makers also have major operations in Puerto Rico.
Likewise, Pratt & Whitney Puerto Rico, Inc. (formerly Infotech Aerospace Services) exemplifies Puerto Rico’s growing prowess in avionics. The company began operations in Puerto Rico in 2003 and expanded into a 60,000-square-foot building in Isabela due to its “successful operations and explosive growth.” It currently employs over 850 professionals. Honeywell Aerospace, Lockheed Martin, Lufthansa and Hamilton Sundstrand are just a few of the other companies developing and manufacturing avionics here.
International Traffic in Arms Regulation (ITAR) Compliance: As a U.S. jurisdiction, Puerto Rico complies with this regulation that states that U.S. citizens may access defense and military-related technologies.
Highly Educated Workforce: Puerto Rico is home to two of the top 20 largest engineering programs in the nation at the Polytechnic University of Puerto Rico and the University of Puerto Rico, Mayagüez campus. More than 10,000 degrees in science, engineering, and technology are awarded each year by colleges on the island.
Manufacturing Expertise: Although Puerto Rico boasts the lowest labor costs of any region under U.S. jurisdiction, the island’s bilingual workforce is well known for its high productivity with significant expertise in process development, automation, quality control/assurance, warehousing and more.
U.S. Citizens since 1917
U.S. legal protections
Languages: English and Spanish
U.S. currency and banking system
Berry Amendment & Buy American Act compliance
U.S. free trade zones and customs; goods enter the U.S. Duty-Free
Puerto Rico is the home to two of the top 20’s largest University engineering programs in the US.
We have a strong pipeline of talent. Over 10,000 engineers, scientists, and IT professionals graduate every year.
Our location in the Caribbean makes it a short flight from New York (3 hours) and Washington, DC (3.5 hours)
Puerto Rico offers 25% – 38% lower wages over any region under U.S. jurisdiction as per the US Bureau of Labor Statistics (2018 numbers).
Amgen, Eli Lilly, Abbott, Medtronic, Boehringer, and Becton Dickinson have invested nearly $166 million dollars in Puerto Rico since 2005.
Pratt & Whitney, Lockheed Martin, Lufthansa, Honeywell Aerospace and other aviation companies have invested nearly $120 million in Puerto Rico since 2005.
49 FDA-approved pharmaceutical plants scattered across the Island, Puerto Rico is the home of top multinational pharmaceutical companies, including Astra Zeneca, Abbott-AbbVie, Bristol-Meyers Squibb, Merck, Pfizer, Eli Lilly, and numerous others.
Many companies operate more than one site on the Island. Two dozen different kinds of pharmaceutical products are manufactured in Puerto Rico: antihypertensive drugs, tranquilizers, laxatives, anti-diabetic drugs, vasodilators, antibiotics and contraceptives, among many others. At last count, 12 of the top 20 pharmaceutical companies have a presence on the Island.
Why Puerto Rico IT Firms