Chapter 20 Enterprise and industrial policy SME and Enterprise Policies and access to finance.

1. Chapter 20 Enterprise and industrial policy SME and Enterprise Policies and access to finance.

2. SME definition in Iceland • Iceland generally applies the Commission recommendation of 6May 2003 (2003/361/EC) regarding the definition of SMEs. • Over 99% of enterprises in Iceland are SMEs • Provide around 80 thousand jobs. • Statistics Iceland uses further criterion based on the staff headcount as seen in following table.

3. Overview of SME sector

4. Main elements in the Science and Technology Framework

5. The Science and Technology Policy Council The Science and Technology Policy Council concists of 6 ministers and 16 other members from the science and technology setting The council is headed by the Prime Minister. The government is composed of 10 ministers – thereof 6 have a seat in the Science- and Technology Policy Council.

6. Science and Technology Policy 2010-2012 http://www.vt.is/files/S&T%20policy%202010-2012_302180683.pdf

7. The Science and Technology Policy 2010-2012 Guiding principles : • 1. Cooperation and sharing • Research and innovation is widespread between universities, research institution, entrepreneurs and industry. Collaboration and sharing of resources between sectors will be promoted • 2. Quality and rewards • International quality standards and quality and achievement indicators will be adopted to a greater extent • 3. International research and innovation • International cooperation in research and innovation will be strengthened and the development of multinational joint science and technology actions will be enhanced.

8. Science and technology policy and Innovation Strengthen the capacity to turn R&D findings into products or other business activity Enhance intersectional knowledge dispersal and merger Support the private sector in further participation in international research, development and innovation projects and knowledge transfer Sharpen targeted support to companies heading for international marketing Encourage all in realizing the innovation potential and value creation within the creative industries with focused efforts and cooperation.

9. Commitments to EU´s Research and innovative policies Iceland is fully committed to the objectives of the European Research Area (ERA). Iceland will follow up on the objectives of the Innovation Union and will use the Flagship Initiatives of Europe 2020 as guiding principles in it´s Innovation -policy making. Many of the targets of Europe 2020 have been evaluated for the policy objectives design for “Iceland 2020”, such as that our investments in R&D shall be no less than 4% of GDP by 2020. This will be accomplished by increasing the participation of industry in R&D and maintain and increase government allocations to the competitive funds.

10. International Science and Technology cooperation • STPC Policy – on international science and technology cooperation focuses on: • -active participation in international research cooperation, • -aassessing the scope, the commitment and opportunities, • -strengthening the support service for applicants • Agreements on S&T with third countries (MOU; India, China, France) • Nordic cooperation (Nordforsk, NICe, NEF, Nordplus and Noria) • Other European Research programmes and Institutions

11. The main competitive funds 4,6 million EUR 17,8 million EUR

12. Overview of STP related competitive funds

14. Technology Development Fund - objectives The fund heres under the governence of Ministry of Industry and is hoasted with the the Icelandic Centre for Research The fund constitutes a significant part of the formal organisation of the Science and Technology Policy Council. It´s role is to support research, development and innovative activities that increase the competitiveness of Iceland.

15. Type of Applicants 2010

17. Grants by sectors 2004-2010 Food Energy Tourism Design Production Biomedicine Constructions Metal Computer science

18. Iceland the e-Nation - Icelandic Government Policy on the Information Society 2008-2012

19. Policy making process • Started in October 2007 • Three main organized bodies for policy formulation • Policy committee, two representatives from each coalition party along with representatives from the Prime Minister's Office • Core group, the permanent secretaries of all the ministries • Consultation group, representatives of stakeholders and the ministries • The Process • Compose a policy framework (focal points and scope) • Ministries and stakeholders submit proposals for special tasks • Conduct open consultation through Island.is

20. eGovernment Policy 2008-2012 Vision: Icelanders shall become the leading nation in electronic services and the utilisation of information technology Guiding Principle: User friendly and efficient services – no need to wait your turn 3 Pillars: B. Efficiency C. Progress A. Services

21. The policy • A brief, concise policy (10 pages of text) • The three pillars along with specific objectives • A list of quantitative, time-specific and prioritized tasks where responsibilities are clearly defined • 65 tasks in total

22. Objectives Iceland shall become an e-nation – offering self-service of high quality at a single location Self-service online – applications, certificates, notifications, appointments, data submission Online centre – every service accessible at one site: www.island.is Information service – access to personal and general data held by public bodies The e-citizen – everyone’s requirements fulfilled by quality service Tasks - example Change of domicile within Iceland, birth certificates, certificates of marital status, and other National Registry services An online police station Booking appointments at health centres and with specialists A personal health history Registration of vehicles Educational background, from primary school through university Payments and applications to the Patent Office for trademarks, patents and designs Reminders about renewing documents such as passports and driving licences Rules, benchmarks and instructions for developing public websites Pillar no. 1 - Services

23. Objectives The e-nation shall be efficient, simple and secure – data, rather than people, will travel from one public body to another Totally integrated organisation – standardisation, coordination, cooperation and security Simpler public administration – a key task Online payments, eIDs, e-procurement Coordinated access to index files kept by public bodies Reduced bureaucracy, increased automation Eliminating barriers, for example legal impediments Jobs independent of location Tasks - example Standardisation and integration in e-government Effective, uniform and secure communication between state government information systems Sharing and coordinating centralised databases, such as the National Registry, Enterprise Register and vehicle registry Introducing eIDs in communications with public bodies State purchases will become electronic, including orders, invoices, payments and invitations to tender Rendering all payments from the state electronic and enabling e-payments for state services Using IT to support the goal of public service jobs becoming independent of location Pillar no. 2 - Efficiency

24. Objectives The competitiveness of the Icelandic e-nation shall be based on active democracy, sound education and powerful industries Innovation and research – always a step ahead Education – constant application of information technology to learning and teaching Communication and democracy – e-voting trials in municipal elections, increased citizen options for participating in the decision-making processes of public bodies Commercial sector – emphasis on outsourcing and information technology in order to improve competitive conditions for Icelandic companies on the international scene Tasks - example Furthering the support of a guidance centre for innovators and small companies (Innovation Centre Iceland) Increasing the use of information technology in education and teaching, for example by supporting IT leaders in compulsory and upper-secondary schools Distance learning in preparation for examinations in hunting and firearms Getting the public more involved in formulating policy, determining regulations and taking other public body decisions Public parties delegating software development, IT services and operations to private companies where practicable and economical Trial with local government e-voting in two municipalities in 2010 Pillar no. 3 - Progress

25. Source: World Economic Forum: The Global Competitiveness Report 2009-2010

26. Percentage of individuals who use a computer every day or almost every day

27. Electronic Tax Returns (Individuals) Source: Internal Revenue Directorate 2010

28. Percentage of ElectronicCustomsProcessingIndividualsandCompanies Source: Directorate of Customs 2010

29. Organization of stakeholder participation in policy and programming work Stakeholder participation is extensively exercised – primarily during policy design. National Forums have gained increased momentum after the economic recession in 2008. Thousand people participated in a National Forum in 2010 in preparations for a new constitution. Regional Forums (8) were held in preparations for Iceland 2020, each with about 100 participants. Regional Growth Agreements are bottom-up contracts on socio-economic issues that reflect the emphasis of regional stakeholders and authorities.

30. Measures to establish a favourable SME environment The Development Strategy for SMEs in legislation on public support to technology development and innovation (Act No 75/2007) The Development Strategy for SMEs is also embedded in the Regional Development Policy The Innovation Centre Iceland, a government agency under the Ministry of Industry, Energy and Tourism, the key organization responsible for delivering support services and implementing business development, with the overall aim of and increasing national competitiveness.

31. Innovation Center Iceland Mandate • Strengthen the competitiveness of the Icelandic economy and improve the quality of life in Iceland • Knowledge transfer and support services for entrepreneurs and innovative start up companies • Applied technological research and product development in cooperation with SMEs. • Testing and certification services for Icelandic companies

32. Innovation Center Iceland Director: Þorsteinn I. Sigfússon, Professor and holder of the Global Energy International Prize 2007.

33. 90 employees in 8 locations Húsavík 2009 Sauðárkrókur 2009 Ísafjörður 2007 Akureyri 2002 Egilsstaðir 2009 Hornafjörður 2008 Reykjavík Vestmannaeyjar 2008

34. Impra Entrepreneurs and SME services • Center of information and guidance for entrepreneurs and SMEs • More than 7.000 free counselling interviews this year • Around 11.000 information interviews • Support programs and grants • Management of Incubation Centers • Support to improve practical business skills and knowledge

35. How does Innovation Center support SMEs and Entrepreneurs? Key programmes and services

37. The Toolbox for the SME’s businesses Database for IP Guidelines for finance plans for SMEs Database for Technology Transfer Range of web based services and tools Courses on business related issues Outline and guidance for business plans Best practices for entrepreneurs and inventors Information on national and EU grants Information guidance on all kinds of permits, certifications, testing, financing etc.

38. Counselling Services Services for all established SMEs and entrepreneurs wanting to establish a company or develop a business idea Information Mentoring and advice Project management Networking Focus Constructive criticism Free of charge

39. Courses for entrepreneurs Business Start-up Product and Service Development Project Management Working with ideas Marketing and developing Courses for female entrepreneurs

40. Structure and content • All major subjects covered • Marketing • finance • project planning • development • service quality • networking • human resources • etc. • Continuous writing of a business plan • Experienced guests for inspiration • Private lessons as needed • Clear end product: Business plan • Guidance as needed after the course

41. Brautargengi (e. Support) • A course for women who want to develop a business idea • The first group graduated in 1998 , 75 hours course that covers 15 weeks • Approximately 800 women have participated • All over the country • Main goals: • Women learn to write a business plan • They gain practical knowledge about running a business • Support for women so there will be more of them running a business in Iceland 41

42. The effects of courses for female entrepreneurs. • Result: • 55% of the women who have finished the course are running a business today (March 2010) • 19% are developing a business idea (March 2010) • Most participants say their participation was a key factor in entering business activity

43. ICI Incubator Centers Support and facilities for start-up companies working on innovative business ideas Ten years’ experience at the original center in the Reykjavik headquarters Increased focus on incubator centers since the beginning of the economic crisis In just one year, 6 new centers have opened Innovation Center Iceland now operates 8 incubator centers.

44. Incubating Centres • Support and facilities for start-ups with high innovation and development component • 4 Incubating Centres with emphasis on high tech start ups, energy, and health technology • 3 “business start-up” centres with lower innovation content

45. Women in Iceland First female democratically elected president Female prime minister Female first speaker of the Parliament Social structure favorable to womens‘ participation in economy and society

46. Regional growth agreements: SME networking and cluster development

47. Regional growth agreements • Agreement between ministry of industry and regional development agencies • The main objective for growth agreements is to promote innovation and strengthen the competitiveness of regions with networking and cluster co-operation among SMEs • Linkages with R&D institutions and academia are supported

48. Regional growth agreements Ways to fulfil these objectives are as follows:  Strengthen cooperation among companies, universities and government agencies to enhance innovation and development for companies and industries. Promote and support clusters and cluster initiatives in the region and regional expertise in preðdefined strongholds. Increase the number of companies, jobs and supply of regional products and services. Support export promotion activities Participation in international projects with the aim of supporting regional strongholds. Attract foreign direct investment and expertise knowledge

50. Regional growth agreements - Industrial emphasis and stronghold focus •  Specific emphasis will be on regional strongholds such as; • renewable energy • Food and agriculture • Tourism • fisheries • clean-tech