Overview

Spatial

Landscape

Industry

Knowledge

Mobility

Cargo

Energy

Strategies

The knowledge strategy builds on the Icelandic culture of innovation and strong commitment to education. It will showcase the Keflavik Airport area as a benchmark for sustainable development innovation and creativity worldwide. 
The strategy recognizes the advantage of a world class educational system and highly-skilled talent pool, supporting the development of an attractive ecosystem that fosters partnership and collaboration between trend-setting companies, local communities and existing premier Icelandic R&amp;D institutions.

The location is ideal for developing knowledge, training and skills hubs to complement the target industries. These hubs will play a key role to diversify regional jobs to more high value sectors and reduce greater reliance on international workers. The location is particularly strategic for aviation related R&amp;D and developing, testing, implementing circular economy technologies. An integrated industry and knowledge hub will make it more viable for investment in research to commercialization
The strategy is a key pillar of the masterplan to create the future engineers, scientists, technicians, managers and workers for the various industrial, commercial and infrastructural activities. This will create a sense of pride and achievement for the Icelandic and international community of people who will make this region their home.

Iceland’s economy is driven by strong institutional frameworks, skilled workforce and strong principles for clean and green living. 
Over the past years, Iceland has achieved high economic growth, while providing high living standards to its residents. Economic growth has largely been driven by fishing and tourism, with recent expansion of knowledge- intensive industries such as data processing and pharmaceuticals. 
Iceland offers incentives for research and development (R&amp;D), which has been supporting knowledge economy growth nationally.

R&amp;D expenditure as a share of GDP has increased from 1.7% in 2013 to 2.5% in 2020. The growth can largely be credited to business enterprise sector spending, which has increased at a CAGR of 15% between 2013 and 2020.

The most innovative enterprises for R&amp;D spending are information and communication and financial and insurance companies. These companies are primarily located in the capital area.

In 2020, 72% of the Icelandic population between the ages of 16 and 74 attained some form of education. 
Iceland has seven universities of which three are located in Reykjavík and are the closest to the Suðurnes region.

Iceland offers attractive incentives, as it has below EU average corporate taxes in Europe (20%) and foreign specialist tax discount (25%) during the first three years of operation and a favourable patent registration environment.

Keilir Academy is located in Ásbrú and currently offers academic programs, focusing on tourism, aviation and gaming sectors. Keilir is affiliated with the University of Iceland and other institutions and Icelandic companies.

More than 82% of people of foreign descent over 18 years old in Iceland are interested in obtaining higher qualifications. Skills development and upskilling are a key national policy objective.

The knowledge strategy has four main objectives

The United Nations has identified capacity-building as one of the most important means of achieving sustainable development. Businesses in the Suðurnes region will require new skills and knowledge to contribute towards national and global sustainability goals. The area is well suited to lead on research areas linked to aviation, low carbon tech, marine biotech, green energy and circular economy frameworks. Knowledge and skills hubs are integral to the masterplan by integrating with other strategies. This integration will ensure that there is capacity and capability to deliver the masterplan using local workforce, knowledge and resources.

<ul><li>Support development of circular economy concepts for eco-industrial park at Helguvík-Bergvík</li><li>Strengthen partnerships with key stakeholders such as Keilir - Academy and UI Science Park</li><li>Explore cross-country partnership with educational institutions in Europe and North America</li></ul>

<ul><li>Be a nationally important hub for research and innovation with clusters specializing in aviation, health products and low carbon technologies</li><li>Become a key part of national innovation and research programs</li><li>Provide world class facilities and services to enhance researchers' access to high-quality R&amp;D infrastructure</li><li>Encourage cross-country research collaboration, with direct access between Keflavik Airport and European and North American R&amp;D facilities</li><li>Strengthen Iceland's competitiveness in the international scientific community</li></ul>

Local communities and businesses are at the core of R&amp;D and knowledge creation. Integrating local businesses, schools and vocational centres to the R&amp;D value chain will help advance local knowledge and retain talent. Businesses will benefit from lower recruitment costs and be more willing to invest in skills and training programs.

<ul><li>Develop and mobilise a region wide skills and vocational training program</li><li>Secure long term skills development program funding</li><li>Create targeted stakeholder engagement and outreach programs</li></ul>

<ul><li>Employ both local and international talent in knowledge-related activities</li><li>Provide new and diverse job creation opportunities, including upskilling and workplace-based learning opportunities</li><li>Ensure higher education is responsive to the labour market needs, to avoid people having the wrong skills or being overqualified</li><li>Support SME growth locally, ensuring local business owners benefit from new opportunities in the region</li><li>Encourage strong integration of sector supply chains within the wider local economy</li></ul>

Most stakeholders in Iceland agree that a culture of innovation and R&amp;D is very important to maintain Iceland’s competitive advantage in a globalized world.
New partnership and collaboration models are required to attract the industries identified and develop innovative circular economy and SDG frameworks. Creating an organizational culture for innovation and knowledge sharing can increase local economy efficiency, by bringing new insights, capital, and leadership.

<ul><li>Advance lab space enabling flexible work and cooperation</li><li>Set up intermediaries, incubators and R&amp;D programs to work on joint projects that may also involve international partners</li><li>Clear legal and incentive frameworks enabling trust and cooperation between different partners</li></ul>

<ul><li>Become a hub for knowledge sharing, generating an agglomeration effect. This results in a more efficient creation of new knowledge and facilities resulting in lower cost for those involved</li><li>Facilitate industry collaboration for circular economy, where by-products from one firm are used by another in its production of its goods, will help naturally facilitating cooperation and research vertically, with diverse supply chains cooperating both for mutually beneficial outcomes</li><li>Demonstrate projects from cooperation between large multinational and local firms to replicate and scale up in other parts of Iceland</li></ul>

Early stages of R&amp;D programs require more financial support and certainty. Commitment from public and private sources help to mitigate risks and drive projects from concept, to prototype to commercialisation. 
Creating a supportive funding landscape through incentives, guarantees and match funding would help businesses and R&amp;D institutes target niche opportunities.

<ul><li>Beneficial tax incentives to attract private investment in long term R&amp;D projects in Iceland</li><li>Fund foundation programs led by regional institutions such as Keilir Academy, FS School and Technical Colleges “Tækniskólinn”</li><li>Government support to reduce the cost of education and specialist training for students</li></ul>

<ul><li>Attract a share of European and global R&amp;D and investment funding for the high value sectors in the area</li><li>Ensure Iceland is well placed to capture a share of innovation opportunities by providing the support and facilities required for the early stages of research and development work</li><li>Generate attractive investment opportunities in the Keflavik Airport area, supporting collaboration across countries and sectors</li><li>Provide purposely planned and readily-available sites for investors within an innovation eco-system. Investors will benefit from clustering and shared infrastructure</li></ul>

Knowledge strategy projects were identified to support the high value activities in the Industrial strategy and to support the socio-economic growth in the Suðurnes region. 
National policy on science and technology, and the fourth industrial revolution (4IR) have a strong emphasis on creating an innovative ecosystem, where knowledge-based companies succeed and grow in Iceland, attracting talented people to Iceland. These policies also support the various R&amp;D themes and priority projects identified in this strategy. 
The KAA sites identified - Aðalgata and Ásbrú – for these R&amp;D hubs will benefit from the proximity to high skilled workforce (local and international) and local industries benefiting from the research programs. The airport connectivity will complement the professional and leisure lifestyle of the creative millennial affluent workforce. 
By actively planning for these R&amp;D projects, the area can support and directly influence the growth and impact of the masterplan.

The Ásbrú site is well suited for training and research activities linked to tourism and aviation. The site also benefits from a vibrant town centre with good quality housing, leisure, education and retail space.

Providing courses and facilities required to support the skills transition for the growth in climate friendly and sustainable tourism. Growth in high value eco-tourism will require advanced hospitality, hotel management, tourism packages and digitalisation courses. The academy can also focus on Arctic tourism, attracting students from other Arctic Circle countries. 
Accredited courses will increase employability and retain workers in the region. The academy will complement activities planned at the KEF visitor centre, aviation activities at Ásbrú landside and multipurpose centre.

Facilities on this site will focus on the future of aviation, with space for design, incubators, prototyping and testing, simulation and digital research areas.
R&amp;D programs will complement aviation related activities such as robotics, digitization and composites, SAF and hydrogen, drone services and carbon fibre technologies and supply chain.
Location is favourable for R&amp;D programs in partnership with airlines, ISAVIA, air logistics companies Keilir academy and other R&amp;D institutes.

Apart from supporting the specific industries in the masterplan, the sheer volume of construction activities in the future would require vocati­onal training “Tækniskólinn” for modern-sustainable construction and engineering skills.
This centre would provide virtual and real learning for local people to access a variety of resources including e-learning, video, audio, images, documents, web links and articles.
The centre will operate in close coordination with the construction hub at Helguvík-Bergvík and also support ISAVIA’s social value vision and partnership with high schools and other academies in the region.

The Aðalgata site is well suited for a range of high value and hi-tech R&amp;D hubs to complement some of the major industrial activities in the region. Clustering of various R&amp;D hubs would create a unique commercial and knowledge branding for the area.

There are strong drivers for reducing dependency on food imports, strengthening local supply chains and farming food using more sustainable methods. There are R&amp;D opportunities to collaborate with alternative production methods, such as green houses, vertical farming, volcanic soil research and spring water technology.
The hub will include an advanced research space, with a test kitchen and lab space, small scale indoor and outdoor production space for samples and testing. The location is suitable to attract high skilled workers and researchers working in partnership with local companies, farmers, retailers and health/bio-tech companies.

Research facility, focusing on advanced carbon fibre material and recycling technologies. Research facility, with shared office space, product development space and testing space. 
Aviation industry is one of the key users of carbon fibre components, and industry presence is beneficial for knowledge sharing. R&amp;D will complement advanced aviation materials, medical, drone and other specialist manufacturing companies in the region.
R&amp;D programs can be developed in partnerships with airlines and R&amp;D institutes.

Facilities allowing for R&amp;D in a diverse range of pharmaceuticals and health care products based on Icelandic resources. Pharmaceutical R&amp;D has received a boost after the pandemic. Iceland has a high share of the labor force STEM skills, which is required for laboratory technicians. 
Proximity to an international airport allows easy access to investors and clients. Samples are time sensitive, and require specialist air logistics. 
Activities can include academic research, drug discovery and formulation, clinical trials and patent registration. Partnership opportunities with universities, local health centre, local business such as Algalif and wellness providers in the region.

The knowledge, R&amp;D and innovation aspect of the K64 masterplan will not only create direct economic benefits but also upskill the local workforce to seek new opportunities at home and abroad. 
A vibrant cluster of knowledge, innovation and research will provide the masterplan with a unique branding to attract a range of investors – from early stage prototypes/testing to larger scale industrial applications. These R&amp;D hubs in partnership with local and other Iceland research institutions and companies will make a stronger case for national R&amp;D funding and private sector investment.

deliver more than 24,000 sqm of commercial land by 2035

generate around 700 FTE permanent operational jobs in the area. Coordinated learning programmes and activities are also expected to create additional employment

help upskill and reskill the existing and future workforce. This will support workforce retention within key sectors and bring productivity benefits

provide around 3,800 million ISK net salaries per annum, while generating more than 1,800 million ISK in personal tax revenue per annum

generate around 100 million ISK per annum by 2035 and 550 million ISK per annum by 2050 in rental revenue when all sites are occupied

Strategies

Harnessing the potential of our mind, passion and creativity

Context

Achieve national and global sustainability goals

Integrate local workforce and businesses in R&D and knowledge opportunities

Facilitate R&D activities, industry collaboration and knowledge sharing

Attract R&D funding and investment in target sectors

Programme and Activities

Economic impacts from the programme of activities