Technology sector cuts export swings by up to 16%

Technology and intellectual property industries have made the national economy’s export fluctuations 12 to 16% smaller than they would otherwise have been, according to a new analysis by the Federation of Icelandic Industries, reported by mbl.is.

The analysis says that during the 2020 pandemic, exports contracted by 25.6% instead of 32.0%, making the impact 6.4 percentage points less severe.

The technology and intellectual property sector accounts for 19% of the national economy’s export revenues and has generated about one quarter of all export revenue growth since 2008.

The sector contributed more than 440 billion Icelandic krónur to gross domestic product last year and employs about 18,000 people. Its export revenues totalled 369 billion krónur, an eightfold increase from 2008.

The Federation of Icelandic Industries said the sector had the potential to become the country’s most valuable export pillar by the end of this decade if the right conditions were maintained. It said this would depend partly on the sector’s operating conditions, including tax incentives for research and development and the availability of people with STEAM education.