Building on a Legacy: A Roadmap for Puerto Rico’s Sustainable Economic Development

Puerto Rico stands at a pivotal moment in its economic history. As Hon. Manuel Cidre, Secretary of Economic Development and Commerce for Puerto Rico (DDEC), recently observed: "El desarrollo sostenible ha sido el gran ausente en nuestra economía." More than a critique, I read his statement as a call to action—an opportunity to leverage our successes, address challenges, and chart a sustainable, innovation-driven future.

Over a decade ago, I had the honor of contributing to Puerto Rico’s economic growth by spearheading life sciences, export services, tourism, entrepreneurship, and agriculture efforts. These initiatives laid the groundwork for some of the thriving sectors we see today—an economy powered not by any single DDEC administration, but by the continuity and optimization of sound policies across sectors. Additionally, organizations such as Discover Puerto Rico and the Puerto Rico Science, Technology & Research Trust, as well as partners like Grupo Guayacán, among others, have ensured that progress continues.

Foundations of Sustainable Development*

1. Life Sciences Manufacturing: Puerto Rico remains a global powerhouse in life sciences manufacturing. The sector contributes a significant 43% of the island’s GDP, anchoring a $48 billion advanced manufacturing ecosystem. As one of the top bioscience hubs in the U.S., Puerto Rico produces vital pharmaceuticals and medical devices, providing thousands of high-paying jobs and positioning itself as a leader in nearshoring strategies.

2. Tourism and Hospitality: Tourism has blossomed into an $8 billion industry, exceeding pre-pandemic levels. In 2024 alone, lodging and short-term rentals grew by 23%, and air arrivals increased by 13%, highlighting Puerto Rico’s appeal as a premier travel destination and its role in driving economic diversification.

3. Aerospace Ecosystem: We envisioned Puerto Rico as a hub for aerospace innovation years ago. Today, that vision has materialized. The aerospace sector supports 10,000+ jobs in manufacturing, maintenance, and innovation. It contributes significantly to our advanced manufacturing GDP, aligning Puerto Rico with emerging global industries.

4. Export Services: Strategic initiatives, such as the Act 20-2012 promotion, spurred the rise of export services, making Puerto Rico a magnet for high-value, knowledge-based industries and opening the world to local companies to compete globally. Professional and technical services employment has grown by 40% since 2012, and direct jobs reached 22,000+ in 2022. With an ROI of 16%, export services showcase the economic impact of fostering innovation-driven sectors.

5. Entrepreneurship and Innovation: Public policy initiatives, such as the Young Entrepreneur incentives and programs like Parallel18, have fostered a new generation of innovators. These efforts have created 5,000+ jobs, empowering Puerto Rico’s creative economy and entrepreneurial spirit.

And, a more recent foundation of sustainable development, and one of the most significant achievements of Secretary Cidre’s administration, is the 21st Century Workforce Initiative—a forward-thinking strategy to prepare Puerto Ricans for the digital economy. By focusing on software development, cloud computing, and AI, this initiative equips our people—the island’s greatest asset—with the skills needed to compete in global industries.

An Optimistic Path Forward

To achieve true sustainable economic development, Puerto Rico cannot rely solely on natural resources or an investment-driven model. Instead, we must transition to an innovation-driven economy built on knowledge, technology, and competitiveness, as Porter’s framework for economic development establishes.

For the incoming administration in 2025, the roadmap is clear:

1. Accelerate federal reconstruction funds and strategically invest these resources in energy and infrastructure to maximize economic impact and resilience.

2. Strengthen strategic sectors to solidify gains in life sciences, aerospace, and export services while fostering emerging industries through nearshoring opportunities.

3. Invest in our people, as education, upskilling, and fostering innovation are essential to driving Puerto Rico’s global competitiveness.

Let’s Move Forward Together

Puerto Rico’s economic progress should testify to collaboration, resilience, and forward-thinking leadership. Let's celebrate the strides we’ve made, refine the policies that've delivered results, and build upon this solid foundation.

With a focus on competitiveness, innovation, and resilience, Puerto Rico has the potential to lead in the global economy. Sustainable economic development is not just a strategy—it’s the recipe for our future prosperity. #SeguimosGuapeando

*Source: DDEC’s Performance Evaluation of Economic Incentives, DMO's Industry Reports

**This article was first published on Antonio Duarte’s LinkedIn page.