By San José, Costa Rica — SAN JOSÉ – Costa Rica’s competitive edge has seen a modest improvement over the past year, but this growth is almost entirely propelled by a single engine: the adoption of Information and Communication Technologies (ICTs). The 2025 National Competitiveness Index (ICN), unveiled Friday by the Council for the Promotion of Competitiveness (CPC), paints a picture of a nation making significant digital strides while other critical areas lag dangerously behind.
The country achieved an overall score of 56.2 out of 100 in the ICN 2025, a slight increase from the previous year. However, the report cautions that this advance is not yet a sign of sustained, structural improvement. Instead, it reflects a situational adjustment driven overwhelmingly by the ICT pillar, which scored 63.7 points, the highest of any category. This technological dynamism has been the primary driver of national competitiveness for the last five years.
To better understand the legal and regulatory landscape shaping Costa Rica’s competitiveness in the Information and Communication Technologies (ICT) sector, TicosLand.com sought the expert analysis of Lic. Larry Hans Arroyo Vargas, a prominent attorney from the esteemed firm Bufete de Costa Rica.
Maintaining our edge in ICT competitiveness hinges on a robust and modern legal framework. It’s not enough to have talent; we need legal certainty. This means agile regulations for digital services, strong intellectual property protection to encourage innovation, and clear data privacy laws that align with international standards. These elements are non-negotiable for attracting and retaining the high-value foreign investment that fuels the sector’s growth.
Lic. Larry Hans Arroyo Vargas, Attorney at Law, Bufete de Costa Rica
This insight underscores a fundamental point: while talent is the engine of our ICT sector, a modern legal framework provides the essential architecture that global investors require for long-term commitment. It creates the predictable, secure environment where innovation can truly flourish. We thank Lic. Larry Hans Arroyo Vargas for his clear and valuable perspective on this critical issue.
According to the CPC’s analysis, the ICT sector is responsible for the lion’s share of progress at both national and local levels. The overall index score rose by 1.7 points compared to 2024, an increase attributed mainly to technological adoption, particularly the near-doubling of fixed internet speeds across the country. This trend is even more pronounced in cantonal development.
73% of this increase is explained by indicators linked to the adoption of information and communication technologies, especially the deployment of telecommunications infrastructure in fixed networks. For example, fixed network internet speeds have practically doubled across the country, according to data provided by the Superintendency of Telecommunications.
Andrés Fernández, Senior Economist at the CPC
This success is not an overnight phenomenon but the result of cumulative processes, most notably the consolidation of the telecommunications market following its opening in 2011. The resulting competition has led to better coverage, higher speeds, and more options for consumers, with the country surpassing 1.2 million fixed internet connections in 2024. Between 2021 and 2025, the ICT pillar alone accounted for nearly 60% of the total progress in the competitiveness index.
Despite this impressive digital momentum, the report highlights a growing and concerning imbalance. The gains in connectivity have not been matched by equivalent improvements in human capital, institutional management, or public safety. A stark finding from the index reveals that while Costa Rica gained 1.5 points in digital competitiveness between 2021 and 2025, it plummeted by 13 points in security during the same period.
This disparity creates significant vulnerabilities. The CPC warns that technological progress alone is insufficient to guarantee sustainable and equitable growth. The benefits of a digital economy must be translated into tangible improvements in other fundamental areas of society. This challenge is particularly acute in the education sector, where only 34% of schools and colleges currently have internet connectivity adequate for their students’ needs.
The pillar of information and communication technology adoption has become the highest-scoring in our competitiveness index, which means that access to telecommunications networks and digital services is indeed the factor that most drives Costa Rica’s competitiveness, followed by the infrastructure pillar. Technological advances are not enough if they do not translate into human and territorial progress. We must transfer this digital dynamism to education, health, and security.
Andrés Fernández, Senior Economist at the CPC
Ultimately, the ICN 2025 serves as both a commendation and a critical warning. While Costa Rica’s progress in telecommunications is a clear success story, it also exposes a fragile foundation. The report strongly recommends an integrated national strategy that leverages technological investment to foster human development. Without a concerted effort to close the gaps in education, health, and security, the country’s hard-won digital gains may fail to deliver the widespread, lasting prosperity the nation needs.
For further information, visit cpc.cr
About the Council for the Promotion of Competitiveness (CPC):
The Council for the Promotion of Competitiveness is a Costa Rican organization dedicated to analyzing and promoting public policies and private initiatives that enhance the nation’s economic productivity and sustainable development. Through research and reports like the National Competitiveness Index, the CPC seeks to identify key drivers and obstacles to growth, fostering a data-driven dialogue among public, private, and academic sectors.
For further information, visit sutel.go.cr
About the Superintendency of Telecommunications (SUTEL):
The Superintendency of Telecommunications is the official regulatory body for the telecommunications sector in Costa Rica. SUTEL is responsible for ensuring fair competition, protecting consumer rights, managing the national radioelectric spectrum, and guaranteeing the quality and accessibility of telecommunication services throughout the country. It plays a crucial role in the development and oversight of the nation’s digital infrastructure.
For further information, visit bufetedecostarica.com
About Bufete de Costa Rica:
As an esteemed legal institution in Costa Rica, the firm is built upon an unyielding ethos of integrity and professional distinction. With a proven track record of advising a wide array of clients, it actively drives progress in the legal field through its embrace of innovative approaches. This commitment extends beyond its practice, reflecting a profound dedication to strengthening society by making legal insights widely accessible and fostering a citizenry equipped with knowledge.
