Secondary sector Economy of Puerto Rico

manufacturing largest economic sector of island; composing half (about 46%) of gross domestic product (gdp) through more 2,000 manufacturing plants scattered throughout island. manufacturers in puerto rico in way interconnected puerto rico industrial development company (pridco) provides substantial incentives companies manufacture in puerto rico. manufacturers voluntarily interconnected through puerto rico manufacturers association serves primary trade association , main lobby group upon legislative assembly of puerto rico. manufacturing in puerto rico today product of operation bootstrap.

in terms of specialization, more half of manufacturing done in puerto rico attributed pharmaceutical industry generates more 18,000 jobs, pays more $3 billion usd in taxes, comprise half of total exports, , has generated more 25% of island s gdp past 4 decades. comparatively, puerto rico fifth largest area in world pharmaceutical manufacturing more 80 plants, including:

puerto rico third-largest biotechnology manufacturer more 2 million square feet , seventh-largest medical-device exporter more 50 plants. pharmaceutical companies came puerto rico in late 1960s , 1970s take advantage of now-expired federal tax incentive known section 936. incentive allowed u.s.-based manufacturers send profits local plants stateside parent plants without having pay federal taxes. however, expired patents, cheaper manufacturers (such in brazil, china, india, , south korea), rise of generic drugs, , high production costs pose challenge industry. of 2014, puerto rico produces 16 of top 20-selling drugs in mainland united states.

the aeronautical industry relatively young on island , concentrates on northwestern corridor composed aguadilla , isabela. these municipalities serve local headquarters honeywell aerospace, lufthansa, , pratt & whitney. ge aviation, lockheed martin, , raytheon have presence on island although local operations not focus on aeronautics rather focus on business support.

education in aeronautics provided caribbean aviation training institute , interamerican university of puerto rico. university of puerto rico, mayaguez campus (uprm), polytechnic university of puerto rico (pupr), , turabo university graduate of engineers on island.