Investment from outside the island is very important for our job creation plans. Forums such as those with Chinese investors, as well as Public-Private Participatory Partnerships (P4s), are essential for attracting investment and advancing infrastructure projects that will help us become more competitive and achieve economic growth.

However, all of this will be in vain if we do not also encourage the development of small and medium-sized enterprises (SMEs). Strengthening and supporting our local businesses is essential to addressing current fiscal and economic challenges and setting Puerto Rico on a path toward economic development.

Governor Ricardo Rosselló’s Plan for Puerto Rico includes multiple initiatives that our team at the Department of Economic Development and Commerce is working on together with sister agencies. These initiatives are aimed specifically at empowering our SMEs and promoting entrepreneurship. Below are some of the efforts underway.

In the food sector, we are working with the Department of Agriculture to expand the manufacturing sector by maximizing each region’s agricultural products through innovative processes. The Agricultural Innovation and Technology Center at the University of Puerto Rico in Mayagüez will be key in helping entrepreneurs competitively manufacture products for niche markets both locally and abroad.

In the area of research and development (R&D), we have submitted proposed amendments to Law 73 of 2008 to the Legislature. These amendments would allow proposals funded by federal grants to qualify for the R&D tax credit. This would give local SMEs receiving federal subsidies, such as Small Business Innovation Research (SBIR) and Small Business Technology Transfer (STTR) grants, access to more resources during the research, development, and commercialization phases of new products, processes, and technologies. The amendments also aim to ensure that SMEs in the innovation and technology sectors benefit from cash incentives to support their business plans and generate high-quality jobs.

Additionally, we are proposing amendments to Law 20 of 2012 so that more local companies and professionals can export services from Puerto Rico to markets in the United States and Latin America.

We are confident that these amendments will enable many of our engineers, architects, scientists, and professionals from various sectors to become successful exporters of specialized services. The amendments also include incentives for our medical professionals to expand their services in medical tourism and telemedicine.

We are also betting on SMEs entering two emerging industries: the medical cannabis industry and the industrial hemp industry. For the former, legislation is currently being debated in the Legislature to establish this industry with the appropriate safeguards to protect patients' health and ensure the integrity of the supply chain. The Department of Health is working responsibly to accelerate the licensing process, which is critical to establishing the market this new industry requires.

For the latter, legislation will soon be introduced in the Legislature to promote the cultivation of industrial hemp, which can be used as raw material to manufacture hundreds of products for both the local and international markets— including biodegradable plastics, automobile parts, and other innovative applications.

These initiatives—combined with the recently approved permitting reform, the tax reform led by the Department of Treasury, the upcoming energy reform, and programs such as Puerto Rico Emprende from the Trade and Export Company—will ensure that our entrepreneurs and SMEs can continue to significantly contribute to the economic growth and development of our people.