Costa Rica: A Leading Startup Ecosystem in Latin America
According to the 2024 Global Startup Ecosystem Index published by StartupBlink, Costa Rica ranks as the 8th best country in Latin America for startups and stands at 75th place globally. This reflects a slight drop from the previous year, when Costa Rica was ranked 72nd globally.
The Global Startup Ecosystem Index assesses countries and cities based on more than 40 parameters that measure various aspects of the startup environment. Instead of focusing on the success or failure of individual startups, the index emphasizes innovation and the overall entrepreneurial ecosystem.
San José: The Technological Hub of Costa Rica
Each ecosystem is rated with a composite score derived from three sub-scores: quantity, quality, and business environment. For this edition, StartupBlink evaluated ecosystems across more than 100 countries and 1,000 cities worldwide.
In Costa Rica, San José is the standout ecosystem, receiving a score of 0.77. The report highlights that the country’s stable political climate makes it an attractive destination for foreign investment and partnerships. Additionally, Costa Rica has made significant investments in educating its tech workforce, resulting in a vibrant technology hub with major companies like IBM and Microsoft setting up operations in San José.
Government Support Initiatives
The Costa Rican government supports these efforts through the introduction of Law 7799, which aims to enhance competitiveness and innovation by providing tax incentives for research and development. The Costa Rican Investment Agency also plays a crucial role in promoting foreign investment in key sectors such as advanced manufacturing, knowledge-intensive services, and health and wellness.
Despite these advancements, there are still areas that need development, particularly regarding funding and government support for early-stage startups. Additionally, increasing global visibility for the Costa Rican startup ecosystem is essential to attract more international attention and resources.
Regional and Global Comparison
Globally, the top countries for startup ecosystems are the United States, the United Kingdom, and Israel. In Latin America, Brazil, Chile, and Mexico lead the region, holding the 27th, 39th, and 41st positions globally, respectively.
While Costa Rica faces certain challenges, its robust entrepreneurial environment and institutional support make it a promising location for startup growth, with San José emerging as a key technological hub in the region.