Research & Development

Overview
The Icelandic system of research and development is a multilevel system with a dispersed decision-making structure. It has a number of fully-fledged research institutions, essential funds and a strong force of well-trained scientists, and covers all major fields in science and technology. Icelandic scientists face a challenging task of maintaining the quality and range of research activities. Concentration of research in key areas is important in order to optimise resources. Science and technology have been divided at an institutional level, reflecting a particular historical development and institutional division of labour.

In recent years the boundaries between private and public sectors, between universities and other research institutes, and between applied and basic research have become less strict. Research institutes within the universities which are not directly funded by the government have grown considerably. Many of them are concerned with applied research and services, thereby exposing faculty and students to practical problems and issues raised by industry and governmental institutions alike.

In recent years, considerable changes have occured regarding participation and priorities in research in Iceland, as evidenced by who is funding it. The share of the private sector has proportionally increased, but the share of instiutional research bodies has decreased, in spite of budget increases in real terms. In 1997, over 40% of total research and development expenditures came from the private sector. In 1977 its contribution was only 5%.

The science policy adopted by parliament aims to give science a higher political priority and integrate it better into the political process. It is also meant to facilitate long-term planning, bridge the gap between basic and applied science and increase accountability. Furthermore, the government intends to invest more money in science and development by increasing the share of funds which support project-oriented research. It is hoped that this will strengthen Icelandic science and enhance both economic and cultural development.

A new law has restructured the central administration and funding of research and development, establishing the Icelandic Research Council. The legislation is soon to be updated again. Planning has been facilitated by increased economic stability and low inflation, despite a sharp decline in the fishing stocks. Finally, increasing international cooperation, particularly within the framework of the European Economic Area (EEA), is posing new challenges and enlarging the opportunities for settlement in Iceland.

=>> Act on Public Support for Scientific Research (2003 - Ministry of Education, Science and Culture)

Historical Note
The institutional structure of the Icelandic system of research and development has been shaped by its historical origin. It dates back to the establishment of the University of Iceland in 1911 and the University Research Institute, later called the Applied Research Institute, which was founded in 1937. The Applied Research Institute was only formally connected to the University, although it was conceived as a starting point for a faculty of the Natural Sciences. Formal connection with the University was finally severed in 1965 when independent Applied Research Institutes were established in the areas of fisheries, agriculture and manufacturing.

The fact that natural sciences developed relatively late into a comprehensive programme at the University, coupled with low industry participation in research and its financing, has encouraged a separation between private and public spheres of research and underscored the distinction between basic and applied science. This distinction is also reflected in the past organization of the two national research councils, with one responsible for basic science and the other for applied science. It has affected the relations between the academic community, the government and the private sector, and shaped the channels for funding. Iceland's natural environment and its historical and cultural heritage have also shaped scientific research in the country. Rich fishing grounds, hydro and geothermal energy, and the volcanic and glacial character of the country continue to define new problems and challenges for Icelandic researchers. Rapid social changes during this century and Iceland's increasing integration into the international community are inspiring scientists to research into modern society and to explore new meanings of history and tradition for today's generations.

Adapted from "Iceland - The Republic", Handbook published by the Central Bank of Iceland, ed. by Mr. Jóhannes Nordal and Mr. Valdimar Kristinsson, Reykjavik 1996. The Ministry is responsible for the adapted texts.