Puerto Rican companies and companies with subsidiaries on the island invested over $445 million in Research and Development (R&D) activities in Puerto Rico in 2022, according to a survey, published this Monday, by the Department of Economic Development and Commerce (DDEC).
The survey findings reflected a growth of over $130 million or 45%, when compared to the last survey, with small and medium-sized businesses (SMEs) of Puerto Rico that most promoted R&D growth in recent years, the agency reported.
Of the total estimated investment, $174 million or 39% correspond to local companies, nine percentage points above the last survey (30%). In addition to the total investment, the study managed to quantify over 3,000 employees linked to R&D activities in Puerto Rico, of which 44% are women.
“The survey validates the DDEC's strategy of continuing to promote research and development in sectors linked to the knowledge economy. It also shows the relevance of this incentive in various economic sectors such as technology and life sciences, among others,” said Manuel Cidre, secretary of the DDEC.
Likewise, 24% of investment in R&D comes from small companies with less than 50 employees, focusing on research, development and innovation processes.
“Investment in R&D in areas of high added value is increasing, which confirms that Puerto Rico is moving from being a traditional manufacturer to a manufacturing supported by the creation and commercialization of intellectual property.”Cidre highlighted.
The study, carried out by university professor Manuel Lobato, identified a investment in biotechnology of $260 million, an investment of $79 million in the development of software and an investment of $3 million in the development of artificial intelligence.
“Puerto Rico's economy is nourished and will continue to be nourished by integrated efforts at the business, government and academic levels to strengthen R&D and innovation activities. Investment in research and development is a priority of the DDEC to enact long-term economic development and continue to grow knowledge economy sectors,” the secretary added.
For his part, Humberto Mercader, undersecretary of the DDEC, highlighted that “Measuring this activity is essential to know where we stand and if the efforts we carry out are having results. Seeing the findings validates that the efforts being made are giving results, especially seeing the progress of local companies.”.
“Greater investment in R&D represents greater opportunities to create valuable products and services, which in turn represent opportunities to increase exports. This survey, which we did this year with the help of the expert Professor Lobato, we are institutionalizing within the DDEC so that it is done regularly every two years, and that it helps us to have public policy discussions on issues of science, technology and innovation. Mercader declared.