Summary: Mexico’s medical device industry is expanding beyond manufacturing as supply-chain restructuring, nearshoring and geopolitical pressures increase demand for more integrated regional capabilities. Tijuana’s proposed Center for Innovation and Development of Medical Devices aims to add product design, engineering and R&D to Baja California’s established manufacturing base, potentially deepening Mexico’s participation in the North American medical technology value chain.
Mexico’s medical device industry is seeking to move further up the value chain as global trade tensions, supply-chain restructuring and technological competition reshape the sector, with Tijuana planning a new innovation center to expand regional capabilities beyond manufacturing.
The Baja California Medical Device Cluster announced plans to establish a Center for Innovation and Development of Medical Devices in Tijuana. The project is intended to incorporate product design, engineering, research and development into a region whose medical technology industry has traditionally been anchored in manufacturing.
The initiative was presented during the cluster’s annual report, led by President Rosa Castañeda, marking the first year of the current board’s administration. The organization highlighted industrial collaboration, strategic partnerships and projects aimed at strengthening the sector’s growth.
Mexico’s Medical Device Industry Gains Strategic Relevance
Tijuana’s proposed center comes as medical technology assumes a broader role in Mexico’s industrial and trade landscape. The industry is increasingly influenced not only by healthcare demand, but also by geopolitical shifts, industrial policies and companies’ efforts to build more resilient regional supply chains.
Carlos Alejandro Salazar Gaytan, president of the National Association of Health Care Suppliers, or ANAPS, wrote for MBN and he said that the medical device industry has evolved from being viewed primarily through a clinical and technological lens into a strategic component of the global macroeconomic and geopolitical landscape. He said trade tensions, industrial policies and supply-chain restructuring are changing how medical technologies are produced and distributed, reported MBN.
According to Inter-American Development Bank data cited by Salazar Gaytan, Mexico’s medical device manufacturing industry represents approximately US$22 billion in global trade, equivalent to about 8.6% of the global medical device market. The sector accounts for more than 3.6% of Mexico’s exports, employs more than 160,000 people directly and grows at approximately 9.1% annually.
Mexico is also Latin America’s leading exporter of medical devices and ranks among the world’s top five exporters.
Tijuana Targets Higher-Value Activities
These national trends provide context for the Baja California cluster’s plans, as the proposed center would give companies access to capabilities that complement the region’s established manufacturing base.
The project seeks to strengthen Tijuana’s role in medical technology by developing expertise in product development, engineering, design and research. Rather than replacing manufacturing, the initiative is intended to add specialized activities that can increase the region’s participation in different stages of the medical device value chain.
The Tijuana Economic Development Corporation, or Tijuana EDC, backed the initiative and emphasized the importance of developing higher-value activities while continuing to leverage the city’s manufacturing capabilities. The organization said this approach could strengthen Baja California’s industrial ecosystem and regional competitiveness.
The shift is particularly relevant because medical devices depend on specialized supply chains that combine electronics, biomaterials, sensors, software and sterilization processes. As manufacturers seek greater resilience and logistical diversification, locations capable of supporting multiple stages of production can become more relevant to investment decisions.
Nearshoring Reinforces North American Integration
Tijuana’s proximity to the United States adds another dimension to the proposed expansion of capabilities, particularly as manufacturers continue to regionalize production and diversify supply chains.
Approximately 64% of medical devices manufactured in Mexico are exported to the United States, underscoring the sector’s integration with the North American market. The 2026 review of the United States-Mexico-Canada Agreement is therefore expected to have implications for investment, rules of origin, regulatory standards and regional medical device supply chains.
For Baja California, this integration provides an established industrial platform on which to build additional capabilities. Tijuana’s manufacturing experience, cross-border relationships and proximity to the U.S. market can support the development of activities that require closer coordination between manufacturers, engineers, suppliers and technology companies.
The proposed innovation center could therefore serve as a bridge between existing production capabilities and higher-value functions, particularly if companies use the facility to develop products and processes closer to their manufacturing operations.
Public-Private Collaboration Remains Central
Expanding the sector’s technological capabilities will also depend on cooperation among manufacturers, industry organizations, economic development groups and public institutions.
Tijuana EDC highlighted its collaboration with the Baja California Medical Device Cluster as part of its efforts to support the region’s industrial ecosystem. The organization promotes economic development and binational business activity while assisting companies interested in establishing manufacturing operations in Tijuana.
The broader Mexican industry also faces policy factors that can influence investment and innovation.
“Domestic policy also plays an important role. Efficient regulation, transparent public procurement and institutional stability can encourage innovation and investment, while uncertainty can affect the broader productive ecosystem, Salazar Gaytan said.
Mexico has more than 10,000 registered medical devices spanning more than 2,000 technological categories, reflecting a diversified sector with increasingly specialized capabilities. The country is also expected to attract more than US$500 million in average annual investment over the next five years, according to the data cited by Salazar Gaytan.
For Tijuana, the proposed Center for Innovation and Development could help translate that national growth into a deeper local industrial base. By combining established manufacturing capacity with design, engineering and R&D, the initiative points to a broader evolution of Baja California’s medical device ecosystem — one in which competitiveness depends increasingly on the ability to develop technology as well as manufacture it.