A recent study by the Puerto Rico Statistics Institute found that the island ranks as #41 out of 141 global economies when utilizing the World Bank evaluation methodology. The island's strongest scores came in its assimilation of global technological change (#36) and incentives framework (#37) and weaker in education and human capital (#53).

The study aims to spur better data gathering on the key performance indicators and to enable sage policymaking in this mission-critical arena.

The government of Puerto Rico has just published its Strategic Model for a New Economy, its economic development blueprint. Fortunately for those of us committed to technological innovation, the Island's definitive participation in the knowledge economy is a fundamental aspect of the plan. Few analysts realize that Puerto Rico has two of the United States' largest engineering schools, and that 25% of the world's biological manufacturing capability resides on the Island…the innovation economy is at hand.

Two elements form the axis of the innovation plan: technology-exporting entrepreneurs and R&D-attracting global enterprises. Together, the plan calls for their integration into a soup-to-nuts value chain, from R&D to operations and distribution.

A key infrastructure element to achieve this goal will be the completion of the Science District, a 78-acre R&D center under management by the Puerto Rico Science, Technology & Research Trust.

An essential funding element will be the Special Fund for Economic Development, managed by the Puerto Rico Industrial Development Company, and its focus will be on pushing along venture capital investments in technology-driven enterprises.

Finally, the government plans to redefine the role of the University of Puerto Rico, most likely with an emphasis on technology transfer for private sector commercialization; the University is widely seen as an unexploited source of intellectual property.

Puerto Rico has been awarded the Caribbean and Central American Country of the Future 2009/10 award by fDi Magazine. In the first year of the combined competition, Puerto Rico marginally grasped first place as the top three countries, including Costa Rica (ranked second) and the Dominican Republic (ranked third), were separated by a mere three points.

Puerto Rico achieved not only the top ranking overall, but also the top ranking in the category of business friendliness. The country has the largest number of companies involved in high-tech manufacturing, high-tech services, and knowledge-based sectors in comparison with the rest of the Caribbean and Central American region. More...

Florida Turbine Technologies makes history by successfully demonstrating a 35% fuel consumption reduction for turbine engines in its size range. A team of Puerto Rican engineers at FTThave co-developed the world's smallest and most fuel-efficient turbofan engine. The engine can fit in the palm of a person's hand and was developed by FTT under a $7.5 million contract to develop high-efficiency turbine engines for remote-controlled unmanned aerial vehicles (UAVs) for the U.S. Army More (PDF)...

Low labor, tax and office leasing costs help make San Juan, Puerto Rico the least-costly place to do business among 27 U.S. and affiliated cities/locations with populations exceeding 1.5 million, according to a study by KPMG LLP. According to the study, San Juan had a cost index of 89.1, representing business costs 10.9 percent below the U.S. national average of 100.0. San Juan was followed by Atlanta at 96.9 and Tampa and Dallas Fort-Worth, both at 97.3. More...