What does it take for a small country to compete for high-value global investment in today's economy?

In this episode of Develop This!, Dennis Fraise speaks with Pilar Madrigal of the Costa Rican Investment Promotion Agency to explore how Costa Rica is evolving into a strategic hub for advanced industries and foreign direct investment.

From its geographic position connecting North and South America to its growing reputation in high-tech sectors, Costa Rica is positioning itself as more than a nearshoring destination—it's becoming a knowledge-driven economy focused on long-term value creation.

Pilar explains how the country has successfully diversified beyond tourism into industries such as life sciences, digital health, medical technology, AI, and advanced manufacturing. This transformation is powered by a strong emphasis on talent development and education, which she describes as the foundation of Costa Rica's competitiveness.

A key theme throughout the conversation is that investment decisions are shifting. Companies are no longer just prioritizing cost or proximity—they are evaluating talent availability, risk mitigation, ecosystem stability, and total operating value.

The discussion also highlights the importance of trust and strategic advisory relationships in attracting and retaining global investors, as well as Costa Rica's intentional focus on building long-term partnerships rather than transactional wins.

A central takeaway? Costa Rica's competitive edge lies not in scale, but in stability, talent, and a deliberate strategy to move up the value chain.

Key Takeaways

Costa Rica serves as a strategic bridge between North and South America
The economy is shifting from tourism to high-value knowledge industries
Talent development is the core driver of long-term competitiveness
Nearshoring now prioritizes resilience and value over proximity alone
Trust and long-term partnerships are key to investor attraction
Stability and ecosystem maturity offset size limitations
Investment decisions increasingly focus on total operating value

Key Topics Covered

Costa Rica's geographic and strategic advantages
Economic diversification into high-tech and life sciences
Workforce development and talent pipeline strategies
Challenges of scale and cost competitiveness
Role of investment promotion and advisory strategy
Nearshoring and global investment trends
Trust-building with international investors

Sound Bites

"The main hurdle is the size of the talent pool."
"The future of FDI is about transformation."
"A common mistake is competing only on cost."