Innovation

The island’s innovation environment has grown by leaps and bounds in the last two decades, making Iceland one of the most technologically advanced countries in the world. The government’s forward-looking policies have led to the emergence of a prolific and profitable e-nation with a vibrant research and innovation ecosystem. This focus on tech-development and incorporation, through the national Innovation Policy, has led to the growth of a dynamic business community and an outsized startup culture. Reykjavik has become a hotbed of, particularly, video game companies like CCP Games cementing itself as a global player. Yearly, events like UTmessan see hundreds of startups and thousands of participants meet in Reykjavik to network and join forces to drive the tech industry forward. The strong startup industry finds its fuel in the country’s advanced education system, which prioritises training students with skillsets that are future-ready and entrepreneurial by nature. The banking sector, reborn from the 2008 crisis, is driving a financial services industry that is open to investing in local talent and local ideas. Similarly, the nation has done impressively well to draw foreign interest to its shores, thanks to its dynamic economy and human capital potential.

Net-Zero

Lying just south of the Arctic Circle, Iceland is experiencing the ongoing effects of climate change. Almost all of Iceland’s glaciers are receding at a worrying rate.  To curb the effects of climate change, the government has undertaken a net-zero pledge. Already holding the honours as one of the most eco-friendly nations, often ranked as having the cleanest air, water, and stable nature areas, Iceland looks to achieve carbon neutrality by 2040 and cut greenhouse gases by 40% by 2030. Its Climate Action plan sees a continued reliance on its hydro and geothermal energy, while driving forward electric vehicle adaptation and pushing for cleaner industrial processes. Similarly, the country has immense potential in forestation and wetland expansion projects. A major priority for the government is the empowerment of Icelandic companies with the ability to guide the clean transformation. In manufacturing and industry, tourism, transportation, agriculture, fisheries, and waste management, Iceland is looking to innovators as partners in the net zero drive. Green data centres, carbon-neutral aluminium facilities, renewable methanol plants, vertical farms, clean-energy  greenhouses, sustainable aquaculture, micro-algae production and mass reforestation projects, are all part of Iceland’s sustainability efforts.

SustainableTourism

Known for its dramatic landscapes and striking beauty, Iceland captures the imagination of millions of tourists with its volcanoes, hot springs, waterfalls and, of course, magical aurora displays in the Artic skies.Icelanders are renowned for their openness, friendly attitude, unique heritage and authentic interest in those visiting their shores. The tourism industry accounts for up to 10% of Iceland’s GDP, 15% of the workforce and is a major driver of annual export revenue. Between 2010 and 2020, Iceland saw year-on-year average tourist growth by 20% at least. The industry took a serious knock in the pandemic, however, as lockdowns and travel restrictions saw tourist arrivals drop sharply in 2020. Looking ahead, Iceland’s tourism stakeholders are optimistic, and expect at least 1 million arrivals in 2022. Many industry players took the pandemic to redefine their product offerings, incorporating more sustainable and digital solutions into tourist experiences. Eco-tourism is at the heart of the product offering, with most visitors travelling to Iceland for its magnificent nature.