By San José, Costa Rica — The 2024 Business Benchmarking Study conducted by the Costa Rican Chamber of Industries (CICR) has revealed crucial insights about the performance of companies in key sectors, with a particular emphasis on the innovation gap. This year’s report underscores the widening disparities in innovation investment across different industries, with the medical device sector leading innovation spending at 4.65% of sales, while SMEs significantly lag behind, contributing just 0.96% of their sales to innovation efforts. This gap raises concerns about long-term competitiveness in Costa Rica’s evolving business environment.
Key Findings:
The CICR benchmarking process has become a central tool for businesses to measure their performance across seven strategic areas: culture, leadership, strategy, customer satisfaction, talent management, innovation, and sustainability. The 2024 results are drawn from 35 companies, the largest participation since the study’s inception in 2014.
Innovation Disparity
Investment in innovation averaged 2.62% across all companies, a notable decrease from the historical average of 4.17% over the past decade. Large companies invested more at 3.03%, while SMEs trailed far behind. This shrinking focus on innovation, particularly among smaller businesses, poses challenges for overall industry modernization.
SMEs are the backbone of our economy, but their limited investment in innovation puts them at a disadvantage in the global market
Sergio Arias, coordinator of the CICR Excellence Program
Growth in Sales and Performance by Sector
In terms of sales growth, businesses in the medical device sector saw a staggering 21.7% increase, outperforming other sectors such as food, which grew by 8%, and public services, which grew by 4.3%. However, some sectors, such as technical services (including consulting and legal services), experienced a decline of 3%.
Customer Satisfaction and Talent Turnover
The customer satisfaction index across all industries averaged 90.3%, with SMEs again outperforming larger companies, scoring 92% compared to 89.69%. The food sector scored the highest in customer satisfaction, achieving a remarkable 97.2%.
Despite strong sales and customer satisfaction, the medical device sector faces challenges with a high talent turnover rate of 20.18%, significantly higher than other industries such as public services (7.28%) and food (15.2%). This talent retention issue, while not new, has been exacerbated since 2019, indicating a growing need for better talent management strategies.
Sustainability and Responsibility
The report also reflects companies’ growing commitment to sustainability, with many incorporating responsible environmental practices into their operations. However, more granular data is needed to understand the full impact of these practices across sectors.
Innovation Crucial for Competitiveness
The 2024 Benchmarking highlights a concerning trend: Costa Rican companies, particularly SMEs, are struggling to maintain past levels of innovation. As global industries embrace rapid technological advancements, businesses in Costa Rica need to address this gap to remain competitive.
The decline in innovation investment is worrying, especially for smaller firms that face barriers to technological adoption. The medical device sector provides a clear model for others to follow
Sergio Arias, coordinator of the CICR Excellence Program
CICR Program to Support Business Excellence
The CICR Benchmarking is part of the CICR Excellence Program, a broader initiative designed to guide Costa Rican businesses toward best practices in management and operations. The program culminates in the National Business Excellence Congress, where top-performing companies are recognized. This year’s Congress will take place on November 27, 2024, at the Costa Rica Convention Center.
As Costa Rica continues its push toward greater economic competitiveness, the CICR 2024 Benchmarking Study provides critical data for businesses to evaluate and improve their operational strategies. The key message is clear: without sustained investment in innovation, particularly among smaller businesses, the country’s overall economic progress could face significant challenges.
For further information, visit cicr.com
About CICR:
The Costa Rican Chamber of Industries (CICR) promotes the sustainable development and competitiveness of industrial companies in Costa Rica through various programs, research, and advocacy. The organization works closely with industry leaders to identify opportunities for improvement and create a stronger, more resilient industrial sector.
