Technology In Puerto Rico

An Ecosystem of Connectivity & Capability

Innovation and Technology From Start-Ups to Global Tech Companies

Blockchain, AI, and the Internet of Things (IoT) could transform nearly every sector of the economy. Island-wide 5G broadband access, established LoRa network capabilities, and broad satellite connections allow seamless communications with suppliers, customers, and business partners. Puerto Rico’s tech ecosystem begins with the highly skilled technical workforce that local universities produce and reaches across the globe.

26.5K
STEM graduates in 2019
600+
entrepreneurial tech companies
22K
direct jobs created

Nurturing a Technology Ecosystem

Puerto Rico’s tech sector receives professional support from:

Information and Communications Technology (ICT) Companies Make the Connections

Puerto Rico is a preferred destination for key ICT companies such as Cisco, Oracle, and Hewlett-Packard, all of which tap into the island’s top-notch talent and attractive software export incentives. Other assets include:

  • Broadband connectivity in urban and rural areas
  • Ample wireless connectivity
  • Major investments in climate-resilient data delivery, to ensure service continuity in changing weather conditions
  • Currently, there are three 5G networks with more on the way

A Research Base for Artificial Intelligence

Puerto Rico’s tech community is involved in advancing and implementing artificial intelligence: 

  • The University of Puerto Rico’s ARL Lab at the Medical Sciences Campus focuses on research that applies artificial intelligence to biomedical sciences
  • Act 60 provides tax credits for up to 50% of R&D expenditures

Connecting to the Internet of Things

The Internet of Things (IoT) describes the network of physical objects that is embedded with sensors, software, or other technology. This network has applications in “smart cities,” industrial process improvement, and ultra-high-speed security systems. Puerto Rico has embraced IoT.

  • Sigfox, the world’s leading IoT provider, expanded its 0G network to include Puerto Rico. This brings Puerto Rico into a low-power, low-cost, long-range network that spans more than 1.1 billion people and 70 countries.
  • Everynet launched a long-range, low-power, wide-area network (LoRaWAN) in Puerto Rico, giving the island the only open network of its kind in the United States.
  • Puerto Rico 5G Zone is advancing the transformation of physical industries by powering Smart Cities, Smart Logistics, and Advanced Manufacturing.
  • The Center for the Advancement of Wearable Technologies (CAWT) at the University of Puerto Rico designs and develops wearable technologies that monitor and diagnose health outcomes.

Blockchain Investments

Puerto Rico has become a global destination for blockchain pioneers focused on cryptocurrency.

  • A government-backed advisory board is exploring blockchain’s role in economic development strategies
  • The San Juan Mercantile Bank & Trust International is open to cryptocurrency traders
  • Act 60 supports the use and sale of utility tokens as software. It also allows 0% capital gains tax on crypto assets

Fintech Finds Fertile Ground

Fintech is projected to grow at an annual rate of 25% through 2022. Puerto Rico provides excellent local talent, high financial literacy, and attractive tax incentives to support these growing companies.

  • In 2017, Evertec was the top provider of payment processing services in Latin America, exporting financial services to 25 countries around the world.
  • After just four years, Evertec’s money transfer platform, ATH Movil, reached more than 1 million users, 6,000 businesses, and 80% of banks and credit unions.
  • International Financial Entities (IFEs) are eligible for 6% income tax rate on distributions to resident shareholders or members and are 100% exempt on distributions to nonresident shareholders and members.

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Rafael Pérez

Business Development Director – East Coast
+1 (201) 565-5097
rperez@investpr.org