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Legal and Policy Frameworks

Current stage of implementation:

Ecosystem Actors

Key Actors in the Ecosystem

Education and Capacity Building

Formal and informal education programs that support social innovation exist in the following forms in Iceland:

University-level courses or degrees:“ Social innovation, social entrepreneurship, or impact-driven business programs are offered as courses, degrees, or research tracks in universities or technical institutions
Government-supported training programs:“ The government has launched or funded capacity-building programs, incubators, or skill-development initiatives to support social innovation
Private sector or NGO-led programs:“ Non-governmental organizations, incubators, or private sector actors actively run training, mentorship, or acceleration programs for social innovation
Comprehensive national framework:“ The government has integrated social innovation education into national curricula, vocational training, or entrepreneurship development programs, with structured support and funding.

Coordinating Bodies

A centralized body responsible for coordinating social innovation efforts across sectors does not exist in Iceland.

Details:

Ministry of Culture, Innovation and Higher Education

Ecosystem Communication

The level of communication and coordination among key actors in Iceland’s social innovation ecosystem is currently Moderate: “some collaboration, but existing gaps in coordination.

Support Mechanisms for Policy and Finance

Policy Incentives and Support Mechanisms

To support social innovation, Iceland has implemented the following incentives and mechanisms:

Tax benefits for social enterprises and impact-driven businesses,
Incentives for corporates to fund charities/ESG initiatives,
Incentives for individuals to fund charities,
Government-backed funding programs (e.g., grants, subsidies, social impact funds),
Legal benefits or specific corporate structures supporting social enterprises,
Social security measures for social businesses,
Carbon taxes,
Environmental levies,
Special levies for corporates (e.g., environmental tax),
Special levies for individuals,
Environmental taxes/levies,
Public-private partnerships to foster innovation,
Public/private crowdfunding/lending platforms

Further information:

Social businesses in Iceland are required to make contributions to the national social security system. This includes payments for public pensions, unemployment insurance, health insurance, and other social benefits
Pollution control levies, Waste management fees and environmental Impact Assessment in place
Research and + Development Incentives 33% deductions on tax
Charitable donations deductable from tax
Karolina fund, Frumtak Ventures, Icelandic innovation Center, P2P lending Platforms

Financing Mechanisms

Social innovation in Iceland is financed through a variety of mechanisms including:

International funding (e.g., EU/bilateral/multilateral funds),
Public subsidy and grants,Philanthropy & foundations,
Public investment funds (e.g., dedicated social impact fund),
Private sector investment (e.g., corporations, ESG-driven financing),
Crowdfunding and community financing

Impact

Flagship Programs and Achievements

Notable achievements and flagship programs in social innovation in Iceland include:
Rotin, This project aims to establish a support center for women, focusing on drug treatment, domestic violence, and trauma treatment. It seeks to create cooperation between institutions, organizations, and professionals involved in these areas, https://rotin.is/ currently participating in EU-Project Interact, EyCO helding individuals and companies to reduce their carbon footprint. Traustur Kjarni, (e.Solid Core) Integrating Intentional Peer support in mental care, https://www.solidcore.gg/ Digital health solutions such as Heilsuvera, The Citizen Health Portal “Heilsuvera” is a centralized web application that offers citizens secure, digital access to their health information and eHealth services, https://www.heilsuvera.is/en/

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International Collaborations

Iceland is involved in international collaborations on social innovation through the following initiatives:

Several projects on EU and International levels through EEA grants, https://eeagrants.org/ as well as Humanitarian projects

Tech for Good Innovations

Technological innovations in Iceland that may be transferable to other countries include:
NA

Further details: health tech companies, such as SidekickHealth, are developing innovative digital health solutions, including telemedicine platforms. These companies collaborate with healthcare providers to integrate advanced technologies into the healthcare system https://www.sidekickhealth.com/Di

Impact Measurement Frameworks

Iceland has a formal framework or methodology for measuring social innovation impact.

Further details: SIMPACT Framework: The SIMPACT project provides a comprehensive toolbox for the ex-ante impact assessment of social innovations

Economic Contribution of Social Innovation

Reports on Social Impact

Reports and studies that assess the social impact of innovation in Iceland.

Various but not comprehensive on all social innovation

Policy Momentum

Momentum for social innovation as a public policy issue in Iceland is currently rated as:Significant Momentum: Social innovation is actively supported through policies, funding, or initiatives, with clear government engagement and implementation.

Barriers to Growth

The following barriers are currently hindering the growth of social innovation in Iceland:

Lack of sustainable funding model

Collaborative Ideas

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