The Startup Ecosystem of Iceland

Entrepreneurs in Iceland are inherently global-minded due to the limited consumer market within the country. Iceland prioritizes education, boasting high literacy rates and a skilled tech workforce. This has sparked a shift from traditional employment to the gig economy, particularly in the IT sector, offering greater flexibility. Combined with the success stories within the country, this culture of entrepreneurship sets the stage for continued ingenuity, supported by the government’s commitment to promoting Icelandic innovation as a key export.

The government has taken proactive measures, including the establishment of The Icelandic Centre for Research (RANNÍS) to raise awareness of research, innovation, education, and culture. Organizations like Startup Iceland and Startup Reykjavik play a crucial role in connecting local startups with international investors. The designation of Reykjavík Science City further showcases the government’s dedication to fostering innovation, reinforced by favorable legislation, low tax rates, and incentives for R&D and green energy. Foreign investors are also welcomed with attractive investment legislation and the Golden Investor Visa.

Although Iceland’s small population poses challenges, its strategic location between North America and Europe allows for quick access to large consumer markets. The country’s commitment to enhancing innovation and competitiveness bodes well for the future of its startup ecosystems.