The Future of Puerto Rico s Economic Development: Towards an Economy Based on Knowledge
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1 The Future of Puerto Rico s Economic Development: Towards an Economy Based on Knowledge Eighth Annual Caribbean Conference on Sustainable Tourism Development April 29,
2 AGENDA Puerto Rico s Position in the World Economy Puerto Rico s Goals for the Future How is Puerto Rico Going to Achieve these Goals
3 Puerto Rico s Position in the World Economy $79 billion GDP $20,242 per capita (FY 2004) $55 billion in outbound shipments $39 billion in inbound shipments 43% of GDP from Manufacturing sector 8th largest trading partner of the United States Global leader in Pharmaceutical Manufacturing
4 Puerto Rico s Position in the World Economy Since 1947, Real GNP Per Capita has increased 6 times GNP Per Capita (Constant 2004 Dollars) 14,000 12,000 10,000 8,000 6,000 4,000 2, Constant 2004 Dollars Fiscal Year 4
5 Puerto Rico s Position in the World Economy 1st Global pharmaceutical exporter 8th largest scientific and medical instrument exporter Pharmaceuticals Share of global exports* Scientific instruments Share of global exports* Puerto Rico 24.5% USA 27.6% Germany 14.3% Germany 13.8% USA 10.7% England 6.9% UK 10.6% France 4.7% France 10.3% Mexico 3.0% Ireland 6.2% Ireland 2.1% Mexico 0.7% Singapore 1.7% Singapore 0.4% Puerto Rico 1.5% Brazil 0.2% Brazil 0.2% Source: Epsicom Pharmaceutical Markets Factbook 2003, United Nations Statistical Department; Organization of Economic Cooperation and Development; Planning Board, Statistical. Appendix; A.T. Kearney analysis 5
6 Puerto Rico s Goals for the Future A Growing Economy Based on the Promotion of: A) Export of Products and Services Ex. International Insurance Center B) Tourism Development Ex. Convention Center and 5-Star Hotels C) Promote Local Entrepreneurship Ex. Llave para tu negocio D) An Economy Based Primarily on Knowledge 6
7 Puerto Rico s Goals for the Future An Economy Based Primarily on Knowledge: A) Developing our most precious asset: our bilingual and bicultural people B) Becoming the Global Leader in Life Sciences 7
8 Developing our most precious asset: our people PR is a leading source of engineering talent UPR at Mayagüez: 1st graduating Hispanics 2nd graduating Women 4th in Chemical Eng. 8th in Industrial Eng. 14th in Electrical Eng. Source: ASEE 8
9 Becoming the Global Leader in Life Sciences Puerto Rico s Growing Pharmaceutical & Bio Manufacturing Employment 30,000 25,000 20,000 15,000 10,000 5, Source: annual censuses of establishments, except 1982 from federal Census Of Outlying Areas. After 1988, annual averages of monthly Survey of Establishments. 9
10 Becoming the Global Leader in Life Sciences Puerto Rico s Growing Exports of Pharmaceutical & Bio Products 35,000 30,000 25,000 $ millions 20,000 15,000 10,000 5, Source: Puerto Rico Planning Board. Fiscal Years ending June 30
11 Becoming the Global Leader in Life Sciences Wide Fortune 100 presence, mostly in Life Sciences 11
12 Already becoming a Global Leader in Biotechnology Over $3 Billion invested or committed in Bio since 00 Amgen $2,200mm Eli Lilly Labs over $450mm Abbott Labs over $500mm Becton Dickinson Bio $60mm Bristol Myers Squibb $200mm Abbott Labs (Barceloneta) Almost half of these investments in last 15 months Amgen (Juncos) Eli Lilly (Carolina) 12
13 How Puerto Rico Will Achieve These Goals With an Economic Development Model that: Prioritizes investment in Education. Creates Infrastructure (physical and financial) necessary to develop, attract and retain top talent. Transforms Government into a more efficient, effective, fiscally-balanced and service-oriented machine. 13
14 Investment in Education Puerto Rico Science and Technology Trust Restructuring of the Department of Education Vocational Schools Regional Consolidation Electronic (Virtual) Schools Restructuring of PRIDCO: Science and Tech Doctoral Fellowships Scholarships for Math and Science Teachers 14
15 How Puerto Rico Will Achieve These Goals Nurturing World-Class Partners in Life Sciences Clinical Research Center Collaborations Representative Sample Source: Annual Report RCMI-CRC, 2004 Clinical Research Center Sponsors 15
16 How Puerto Rico Will Achieve These Goals Investing in Physical Infrastructure: The Life Sciences Corridor 16
17 How Puerto Rico Will Achieve These Goals Investing in Physical Infrastructure: The Life Sciences Corridor Molecular Sciences Building & Cancer Research Center Cancer Molecular Biology (cancer, neurosciences) Protein Structure and Dynamics Nanotechnology Genomics and Proteomics Molecular and Behavioral Neurosciences Pharmacokinetics/Pharmacogenetics Emerging and Infectious Diseases 17
18 How Puerto Rico Will Achieve These Goals Investing in Physical Infrastructure: Additional Biotech Facilities Former Roosevelt Roads Naval Base: +8,000 acres site on the east coast Biotechnology Center for Research & Training in Bioprocesses 18
19 How Puerto Rico Will Achieve These Goals The new initiatives and policies adopted by both PRIDCO and the Puerto Rico Tourism Company respond to a longtime need: The strategic planning of the Island s economic activities The commission of the Land Use Plan for Puerto Rico: This process, which has been enriched with the participation of various sectors of our society, is now in its first draft stage, and will most likely change in the next few months as the consultation continues. 19
20 Puerto Rico Land Use Plan The significance behind it is extraordinarily, as when it is completed, this plan will identify where should we develop? where should we not develop? Why? This will help to identify the kind of economic activity that can take place on a specific area, based on the nature of the land, and its economic and potential benefits. 20
21 Scope of the Land Use Plan Land classifications in categories Urban Land Land suitable for development (Programmed and not programmed) Rustic Land (Common and Protected) Other Categories Setting up the urban growth boundary for each municipality Establishment of categories on protected land (land for agricultural, watershed protection, risk prone areas, cultural value areas, etc.) 21
22 The Restructuring of the Economy Towards Sustainable Development We at the Department of Economic Development and Commerce, fully support all the strategies set fourth by the Puerto Rico Tourism Company; initiatives like the development of a Environmental Policy and the Guides for the Development of Eco-Tourist and Sustainable Tourism Enterprises; strategies certain to guide us into the next decade. To our neighboring Caribbean nations, we place our resources at your service, ready to work to improve our destination, doing our part to preserve our natural resources for future generations and the world. 22
23 Thank You!
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