Domestic customers in Iceland tend to be sophisticated technology users. In 1998, there were 90,000 computers in Iceland. This is a high PC penetration rate considering Iceland only has a population of 270,000. This equates to one computer for every 3 individuals. When personal computers first came on the market, the government placed low tariffs on the importation of computers and related equipment, a foresight that caused the use of computers to spread quickly through offices and homes. As a result the population is highly computer literate.36 In 1999, Iceland had 118 secure web servers per million inhabitants, which is second only to the United States, which had 122 web servers per million inhabitants. Iceland far exceeds all remaining countries in this category. The next highest percentage is Australia, which has 78 secure web servers per million inhabitants. 
 

IT Consumers

The largest consumer of computer products in Iceland is the government, followed by services (fishing in particular), and then household usage. Iceland’s advanced telecommunications infrastructure encourages households to use technology because high bandwidth connections are available to both businesses and residents. More than 80 percent of the population has access to the Internet and about half that number has access at home. The young, well educated, and those living near the city of Reykjavik are more likely to be online. These groups also spend more time than average surfing the Web each week. More than 35 percent of the Internet users in Iceland have shopped online.
 

Attributes that Encourage Technology
 

The country’s geography and demographic disbursement make widespread technology adoption easy. In addition, Iceland’s population is very small compared to other countries its size. The sparse population of the country drives residents to want to stay well connected. Widespread adoption of technology and a need for connectivity is apparent by the mobile usage rate in Iceland, which is currently the highest in the world

Industry Stimulants 

The fishing industry has always stimulated growth areas in Iceland’s economy, and the technology sector is no exception. Fishing accounts for 70% of Iceland’s exports and is the backbone of the country’s economy. Therefore, any technology that can increase efficiencies and cut costs of the fishing business is invaluable to the country. The following are examples of the many types of technologies and companies, which exist in Iceland to support its biggest industry:

BR Solutions - Optimization software, business planning systems and decision support systems for the fishing industry

RSF - Computer Center for Fish Auctions

TrackWell Software - Vessel Monitoring Systems

TM Software - Software for the fishing industry

Vaki Ltd. - Catch control systems, Aquaculture systems, Fish & wild life