Half of enterprises* in Iceland with at least ten employees were innovative in 2014–2016. Their innovation led to new or significantly improved goods, services or processes. This is the same proportion of innovative enterprises as in Statistics Iceland’s first data collection for the period 2012–2014. One third of enterprises introduced new or significantly improved goods or services. The innovation could be new to the enterprise without being new to the market, but 25% of enterprises introduced goods or service that were new to the market.

A total of 31% of enterprises had some innovation activity that did not result in a production or process innovation in the period. In addition to innovation of goods, services and processes, enterprises can also have organisational innovations, such as a new business practices or new methods for work responsibilities. A total of 31% of enterprises implemented organisational innovation in 2014–2016 while 27% of enterprises had marketing innovation. If organisational and marketing innovations are included, there were 55% of innovate enterprises in 2014–2016. This is a decrease from the previous period when 59% of enterprises were innovative.

About the data
The findings are based on a data collection that uses definitions of innovation as laid out in the Oslo Manual, 3rd edition, from OECD. The data was collected through the standardised survey of Eurostat, the European statistical institute, translated by Statistics Iceland. The main figures have been published in tables on the Statistics Iceland’s website.

Excluded are enterprises in the following activity classes (with reference to the NACE rev. 2 classification system): Agriculture, forestry and fishing (NACE 01–03), Construction (NACE 41-43), Sales and repair of motor vehicles and motorcycles (NACE 45), Retail trade (NACE 47), Real estate activities (NACE 68), Legal and accounting activities (NACE 69), activities of head offices and management consultancy activities (NACE 70), Veterinary activities (NACE 75), Administrative and support service activities (NACE 77–82), Public administration and defence; compulsory social security (NACE 84), Education (NACE 85), Human health activities (NACE 86), Residential care and social work activities without accommodation (NACE 87-88), Arts, entertainment and recreation (NACE 90–93), Other service activities (94–96).