Iceland Technology Development Fund

Program Overview

The Technology Development Fund supports research and development activities aimed at innovation in Icelandic industry. Operated by RANNÍS (The Icelandic Centre for Research), the fund is competitive and issues calls for proposals twice a year, offering grants tailored to different stages of project development.

Funding Amount

Maximum grant: ISK 45 million per company

Term: Divided over 3-year period

Matching requirement: 50% company contribution required

Minimum R&D spend: At least ISK 1 million over 12 months

Grant Categories

Seed grants (Fræ/Thróunarfræ): For start-up companies or individuals

Fræ: Preparation grant for projects in planning stages

Thróunarfræ: Preliminary grant for cooperative development projects

Sprout grants: Early development stage

Growth grants: Expansion and scaling

Market grants: Market entry and commercialization

Eligibility Requirements

Company type: Icelandic companies working on innovative projects

R&D commitment: Minimum ISK 1 million R&D spend over 12 months

Co-financing: Must provide 50% matching contribution

Project focus: Innovation-driven R&D activities

Application Process

Step 1: Determine appropriate grant category (Seed/Sprout/Growth/Market)

Step 2: Prepare project proposal demonstrating innovation

Step 3: Demonstrate R&D commitment (ISK 1M minimum)

Step 4: Confirm 50% matching contribution capacity

Step 5: Submit during one of the bi-annual call periods

Call Schedule

Frequency: Twice per year

Process: Competitive evaluation

2026 statistics: 29 startup grant applications received, 1 funded (3% success rate)

Key Benefits

Non-dilutive funding for R&D

Tailored to different development stages

Government backing for innovation

Multi-year support (up to 3 years)

Additional Funding

Action for Job Creation: Ministry of Industries and Innovation funding scheme supporting early development of innovative ideas

Contact Information

Operator: RANNÍS (The Icelandic Centre for Research)

Website: en.rannis.is

Application portal: island.is/en/p/technology-development-fund