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Icelandic environment for innovation and entrepreneurship

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"Storified" version of key metrics to explain the Icelandic environment for innovation and entrepreneurship.

The purpose of this presentation is to put the Icelandic innovation environment in perspective, also for those that may not be intimately familiar with Icelandic society or economy.

The presentation is prepared in relation to Iceland's participation in MIT's Regional Entrepreneurship Acceleration Program (REAP) and is still work in process.

Published in: Business
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Icelandic environment for innovation and entrepreneurship

  1. 1. Icelandic environment for innovation and entrepreneurship - at a glance - : Team Iceland
  2. 2. 0 20,000 40,000 60,000 80,000 100,000 120,000 Germany Finland Hong Kong SAR, China Canada Austria United Kingdom Netherlands Iceland Sweden Denmark Singapore North America United States Australia Ireland Qatar Norway Macao SAR, China Switzerland Luxembourg Iceland is among the world's most prosperous countries… 2 GDP per capita 2015 (top 20 countries) USD Source: World Bank
  3. 3. 0 50 100 150 200 250 300 350 400 450 500 Everything else Exports of marine products Exports of manufacturing products Revenues from foreign travelers ...but the economy lacks in diversity 3 Exports of goods and services (Q4 2015 - Q3 2016) Source: Statistics Iceland billion ISK Aluminum Other
  4. 4. 0 2 4 6 8 10 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 Iceland has recovered remarkably well from the economic crash in 2008 4 Unemployment (seasonally adjusted) Source: Statistics Iceland % Real wages index (2000 annual average = 100) 100 110 120 130 140 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016
  5. 5. Inflation has been unprecedentedly low and stable in local currency terms… 5 Inflation (annualized, 12 month trailing) Source: Statistics Iceland 0 5 10 15 20 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016
  6. 6. -40 -30 -20 -10 0 10 20 30 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 ...but currency fluctuations make planning in foreign currency wildly unpredictable 6 Consumer price change in USD (since jan 2007) Sources: Statistics Iceland, Central Bank of Iceland and own calculations %
  7. 7. Iceland's population is small and younger than most western countries’, … 7 Population by sex and age group 2015 Source: United Nations Department of Economic and Social Affairs -15 -10 -5 0 5 10 15 -40 -30 -20 -10 0 10 20 30 -15 -10 -5 0 5 10 15 thousand females thousand males 0-5 y/o 10-15 y/o 20-25 y/o 30-35 y/o 40-45 y/o 50-55 y/o 60-65 y/o 70-75 y/o 80-85 y/o 90-95 y/o Europe USA Total population: 329 thousand
  8. 8. ...fairly well educated, … 8 Educational attainment 2015 (16-75 year olds) Source: Statistics Iceland 0 5 10 15 20 25 30 35 40 Basic education Upper secondary education Tertiary education % ISCED 5, 6, 7, 8 ISCED 3, 4 ISCED 1, 2
  9. 9. 0 10 20 30 40 50 60 70 80 90 100 Turkey Macedonia Malta Italy Romania Denmark Norway Switzerland Sweden Iceland …with the highest work force activity rates in Europe for both sexes. 9 Workforce activity rates in Europe 2015 (16-65 year olds, top 5 and bottom 5 for female) Source: Eurostat % Male Female …
  10. 10. The population is increasingly - yet still not highly - diverse… 10 Source: Statistics Iceland 0 100,000 200,000 300,000 400,000 2000 2002 2004 2006 2008 2010 2012 2014 2016 Population by country of birth Population by country of birth 2016 Born in Iceland All other countriess of birth 0 100,000 200,000 300,000 All other countries Thailand United Kingdom Lithuania Philippines Germany Sweden United States Denmark Poland Iceland
  11. 11. ...but recently with opposite immigration trends for Icelandic and foreign citizens
 - possibly a sign of “brain drain” 11 Net immigration by citizenship Source: Statistics Iceland -6,000 -4,000 -2,000 0 2,000 4,000 6,000 8,000 10,000 12,000 2000 2002 2004 2006 2008 2010 2012 2014 Icelandic citizens Foreign citizens
  12. 12. Technological infrastructure is strong… 12 Households with internet access (top 20, Europe 2014) Source: Statistics Iceland 0 10 20 30 40 50 60 70 80 90 100 Poland Hungary Slovenia Czech Republic Slovakia Austria Malta Ireland Belgium France Estonia Germany Sweden Finland United Kingdom Norway Denmark Iceland Netherlands Luxembourg %
  13. 13. 0 0.1 0.2 0.3 0.4 2007 2008 2009 2010 2011 2012 2013 2014 2015 ...and technology adoption very high 13 Source: Post and Telecommunications Administration in Iceland Broadband connections per capita Mobile subscriptions per capita Fiber optic
 xDSL Other 0 0.2 0.4 0.6 0.8 1 1.2 1.4 2007 2008 2009 2010 2011 2012 2013 2014 2015
  14. 14. Entrepreneurship levels are rather high… 14 New business registrations (per 1,000 people ages 15-64, top 20 countries 2014) Source: World Bank 0 5 10 15 20 25 30 35 Mauritius Netherlands Georgia Ireland Mongolia Montenegro Sweden Norway Chile Bulgaria Iceland Singapore Latvia Botswana Cyprus Australia Estonia New Zealand Malta Hong Kong SAR, China
  15. 15. 0 100 200 300 400 Portugal Belgium Australia Czech Republic Kazakhstan Poland Canada Netherlands Israel Italy Iceland Monaco Russian Federation Iran, Islamic Rep. Switzerland Sweden Norway France Luxembourg United Kingdom Singapore Denmark Austria Finland New Zealand China Germany United States Japan Korea, Rep. ...and so are innovation levels 15 Patent applications (per 100,000 population top 30, 2014) Source: World Bank and own calculations 0 100 200 300 Croatia Greece Estonia France Italy Spain Korea, Rep. Germany Portugal United States Czech Republic North America Luxembourg Israel Austria Belgium Ireland United Kingdom New Zealand Canada Slovenia Iceland Netherlands Finland Norway Singapore Sweden Australia Denmark Switzerland Journal articles (per 100,000 population, top 30, 2013)
  16. 16. Salaries in high-tech are modest, and have a particularly narrow distribution 16 Source: Icelandic Association of Computer Scientists Computer scientists’ monthly salaries (Feb 2016) …by experience 0 200 400 600 800 1,000 1-3 years 4-6 years 7-9 years 10-14 years 15 years+ 0 5 10 15 20 25 <500 500-599 600-699 700-799 800-899 900-999 1000+ ~ 80,000 USD annual % thousand ISK thousand ISK
  17. 17. National R&D investment level is high, … 17 R&D expenditures as percentage of GDP (top 20, Europe 2015) Source: Eurostat via Statistics Iceland 0 1 2 3 4 Slovakia Spain Portugal Luxembourg Italy Hungary Estonia United Kingdom Norway Czech Republic Netherlands Iceland Slovenia France Belgium Germany Finnland Denmark Austria Sweden %
  18. 18. 0 5 10 15 20 25 2014 2015 2016 0 50 100 150 200 2014 2015 2016 …early stage funding activity is decent, … 18 Source: Northstack (subject to change) Number of deals by type Value of deals by type (undisclosed amounts excluded) Other Venture Seed Other Venture Seed M$
  19. 19. …with several - mostly modestly sized - exits 19 Icelandic startup exits to foreign buyers, past 5 years Source: Northstack (subject to change) Company Buyer Industry Buyer geography Year Marorka Mayfair GmbH Energy Germany 2012 Decode Genetics Amgen Biotech USA 2012 Betware Novomatic AG Gaming Austria 2013 CLARA Jive Enterprise software USA 2013 DataMarket Qlik Enterprise software USA 2014 Modio Autodesk 3D printing USA 2014 Zymetech Enzymatica Biotech Sweden 2016 QuizUp Glu Mobile Gaming USA 2016

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