This chapter presents the case of the evolution of entrepreneurial ecosystems of Costa Rica, by focusing on the impact of Foreign Direct Investment (FDI) by Multinational Enterprises (MNEs) on entrepreneurial activity and economic development in the local economy. Costa Rica’s transition from an agriculture-based economy to a diverse one, driven by tourism, electronics, and medical manufacturing, exemplifies the potential of FDI to foster economic growth. This study examines how MNEs contribute to local entrepreneurship and regional development through the transferability of superior technology and enhancing the local absorptive capacity for related knowledge spillovers. The discussion extends to the broader context of globalization, deglobalization, and regionalism, emphasizing the importance of integrating emerging markets into global value chains. The chapter also addresses the evolving focus of economic policies in emerging markets from macroeconomic stability to promoting local entrepreneurial activities. By analyzing Costa Rica’s experience, the chapter aims to provide insights into one of the pivotal mechanisms of entrepreneurial ecosystems - FDI—and how it can drive economic development and challenge traditional views on growth in emerging economies. It also emphasizes the significance of institutional arrangements and regional conditions in maximizing the benefits of FDI and fostering sustainable economic development, as they enhance the development and working mechanisms of entrepreneurial ecosystems.