The Future of Puerto Rico`s Economic Development

The Future of Puerto Rico’s Economic
Development: Towards an Economy
Based on Knowledge
Eighth Annual Caribbean Conference on
Sustainable Tourism Development
April 29, 2006
1
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
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
1947
1948
1949
1950
1951
1952
1953
1954
1955
1956
1957
1958
1959
1960
1961
1962
1963
1964
1965
1966
1967
1968
1969
1970
1971
1972
1973
1974
1975
1976
1977
1978
1979
1980
1981
1982
1983
1984
1985
1986
1987
1988
1989
1990
1991
1992
1993
1994
1995
1996
1997
1998
1999
2000
2001
2002
2003
2004
Constant 2004 Dollars
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
2,000
-
Fiscal Year
4
Puerto Rico’s Position in the World Economy
• 1st Global pharmaceutical exporter
• 8th largest scientific and medical instrument exporter
Pharmaceuticals
Scientific instruments
Share of global exports*
Share of global exports*
24.5%
Puerto
Rico
14.3%
Germany
USA
10.7%
USA
27.6%
Germany
13.8%
England
6.9%
UK
10.6%
France
France
10.3%
Mexico
3.0%
Ireland
2.1%
Ireland
6.2%
4.7%
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
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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
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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
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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
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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
2002
1999
1996
1993
1990
1987
1984
1981
1978
1975
1972
1969
1966
1963
1960
0
1957
5,000
Source: 1957-1988 annual censuses of establishments, except 1982 from federal Census Of Outlying Areas.
After 1988, annual averages of monthly Survey of Establishments.
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Becoming the Global Leader in Life Sciences
Puerto Rico’s Growing Exports of Pharmaceutical & Bio Products
35,000
30,000
$ millions
25,000
20,000
15,000
10,000
5,000
0
1980
1982
1984
1986
1988
1990
1992
1994
1996
Source: Puerto Rico Planning Board.
1998
2000
2002
Fiscal Years ending June 30
2003
Becoming the Global Leader in Life Sciences
Wide Fortune 100 presence, mostly in Life Sciences
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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
Almost half of these investments in last 15 months
Abbott Labs (Barceloneta)
Amgen (Juncos)
Eli Lilly (Carolina)
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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.
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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
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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
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How Puerto Rico Will Achieve These Goals
Investing in Physical Infrastructure: The Life Sciences Corridor
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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
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
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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.
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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.
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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.)
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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.
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Thank You!