Act on Public Support for Technological Development and Innovation in Industry

No. 4, 3 February 2003 Entered into force 7 February 2003

No. 4, 3 February 2003

Entered into force 7 February 2003

 Article 1

Objectives

             The objective of this Act is to increase the competitiveness of Icelandic industry by developing the infrastructure and technological capacity of enterprises, institutions and entrepreneurs to take advantage of technological developments and research connected with them leading to industrial innovation.

 Article 2
 Innovation centre

             The Technological Institute of Iceland (Icetec) shall operate an innovation centre for small and medium-size enterprises (SMEs). The innovation centre shall provide services to all Icelandic industrial sectors in accordance with its role. The Institute’s Board of Directors shall engage a managing director for the innovation centre, as provided for in Article 7 of the Act on the Icelandic Technological Institute, No. 41/1978. The managing director shall be responsible to the director of Icetec.

 Article 3

Role

             The role of the innovation centre shall be to work on innovation and technological development as provided for in this Act and in accordance with the current emphases of the Science and Technology Policy Council. This shall include, for instance:

1. taking the initiative to achieve co-operation between public parties forming an innovation support system for industry;
2. creating special support projects to encourage improved SME operation and promote new business ideas sprouting from the ingenuity of individuals or from research and development (R&D) work in universities, institutions and enterprises;
3. operating an incubator centre to promote new ideas, in accordance with rules approved by the Minister of Industry;
4. handling the dissemination of all types of applied knowledge on the establish­ment and operation of enterprises;
5. serving as a contact with persons carrying out basic and applied research which could lead to innovation in industry;
6. disseminating knowledge on domestic and foreign technological innovations and measures to increase productivity;
7. encouraging the exploitation of scientific knowledge;
8. assisting in obtaining venture capital for projects encouraging innovation and increased value-added in Icelandic industry;
9. participation in start-up companies which the institute has been involved in developing;
10. working together with domestic and foreign institutions with similar objectives on co-operative projects and disseminating knowledge in accordance with the objectives of Article 1;
11. other projects entrusted to in by the Minister of Industry.

 Article 4

Technology Development Fund

            The Technology Development Fund is a special fund under the direction of the Minister of Industry. The Fund’s role is to support R&D in the area of technological developments aimed at innovation in industry. The Technology Development Fund shall finance innovation projects in accordance with the general policy of the Science and Technology Policy Council by:

1. supporting technological development and related research for industrial innovation, for instance, in co-operation with institutions, universities and enterprises;
2. supporting the development of start-up companies and participating in them in the early stages of innovation;
3. financing campaigns and research programmes in individual technological fields to reinforce the technological basis of industry, either in specific industrial sectors or cross-sectorally;
4. supporting small projects carried out by individuals and small enterprises which are likely to create jobs and income and prove profitable despite the original risk;
5. financing analysis of the innovation situation and drafting of plans to strengthen it.

            The Minister of Industry may make detailed provision for the activities of the Technology Development Fund in a Regulation.

            The Iceland Centre for Research shall be entrusted with custody of the Fund, its administration and operation in accordance with an agreement with the Minister of Industry.

 Article 5
Income of the Technology Development Fund

             The income of the Technology Development Fund shall be comprised of:

1. annual budget allocations,
2. income from sale of holdings in start-up companies in which the Fund has participated,
3. contributions from domestic and foreign partners,
4. other contributions.

 Article 6

Board of Directors of the Technology Development Fund

            The Board of Directors of the Technology Development Fund shall be comprised of seven persons, appointed by the Minister of Industry for a three-year term. The Board shall be comprised of:

1. the Chairman of the Technology Committee of the Science and Technology Policy Council, and another member of the Council as an alternate,
2. one member in accordance with a nomination by the Technology Committee of the Science and Technology Policy Council and another as an alternate; they shall not be members of the Committee,
3. one member in accordance with a nomination from the Minister of Agriculture and another as an alternate,
4. one member in accordance with a nomination from the Minister of Fisheries and another as an alternate,
5. one member in accordance with a nomination from the industrial research institutes and another as an alternate,
6. one member in accordance with a nomination from the Federation of Icelandic Industries and another as an alternate,
7. one member without nomination.

            The Minister of Industry shall select the Chairman and the Vice-chairman from among the Board members.

 Article 7
Role of the Board of Directors and expert councils
of the Technology Development Fund

            The Board of Directors of the Technology Development Fund shall make decisions on allocations from the Fund acting upon the opinions of expert councils, appointed by the Technology Committee of the Science and Technology Policy Council for a two-year term. The Technology Committee shall provide the expert councils with a formal statement of their duties.

            The expert councils shall advise on issues in their field of expertise when allocations are made from the Technology Development Fund. Expert councils shall also advise the Science and Technology Policy Council and its sub-committees on matters requiring professional expertise as requested.

            The Board shall seek additional expert advice, in addition to that provided by the Fund’s expert councils, if such is considered necessary in the Board’s estimation. Members appointed to expert councils must have extensive experience of techno­logi­cal development and innovation. They may not be members of either the Science and Technology Policy Council or of the Board of the Fund.

            In the case of a tie vote by the Board of the Technology Development Fund, the Chairman shall cast the deciding vote.

            Decisions by the Board of the Technology Development Fund on allocations as provided for in this Act may not be referred to a higher administrative authority.

            The cost of evaluation of applications and the work of the Technology Development Fund shall be paid out of the Fund’s annual disposable income.

Article 8

Rules on grant allocations

            The Technology Development Fund’s policy on allocations shall reflect the emphases of the Science and Technology Policy Council. The Board of the Technology Devel­opment Fund shall adopt rules concerning applications, their evaluation and procedures. They must specify the conditions for applications and the emphases of the Science and Technology Policy Council.

Article 9

Entry into force

            This Act shall enter into force at once.