Iceland Technology Development Fund: ISK 60M Grant for Innovation in Blue Economy and Health Tech

If you are developing technology in Iceland that addresses challenges in the blue economy, health tech, digital solutions, or related innovation areas, the Technology Development Fund from Rannís offers grants up to ISK 60 million (approximately USD 430,000) to move your project from concept toward commercial deployment. This fund specifically supports Icelandic companies, research organizations, and entrepreneurs working on innovations that can scale beyond Iceland’s small domestic market into Nordic and global opportunities.

Iceland’s unique position as a testbed for technology makes this fund particularly valuable. The country’s small, well-educated population, advanced digital infrastructure, challenging natural environment, and openness to experimentation create ideal conditions for testing innovations before scaling internationally. The Technology Development Fund recognizes this and seeks projects that use Iceland as a proving ground for technologies with broader market potential.

What distinguishes this fund from basic research grants is its focus on commercial viability and market readiness. Rannís, Iceland’s Centre for Research, wants to fund projects that will become products, services, or companies, not just academic papers. Your project should have clear commercial applications, identified customers or users, and a realistic path from current state to market deployment. Pure research belongs in other programs; this fund targets innovation ready to move toward commercialization.

The fund’s priority areas align with Iceland’s strategic strengths and economic development goals: blue economy technologies addressing ocean resource management, health tech and medical innovations, digital solutions including AI and data analytics, energy and environmental technologies, and other innovations where Iceland has competitive advantages. Understanding these priorities and positioning your project accordingly strengthens your application significantly.

Program Overview

What This Fund Offers

The grant amount varies based on project scope, stage, and needs. Early-stage technology development might receive ISK 10-20 million for prototype development and initial testing. More advanced projects closer to commercialization could secure ISK 40-60 million for pilot deployment, manufacturing preparation, or market entry. The fund structures grants to match project requirements rather than applying fixed amounts across all recipients.

Co-funding requirements mean you must secure matching resources from other sources. Rannís expects applicants to contribute 30-50% of total project costs through company resources, other grants, private investment, or collaborative partnerships. This requirement ensures you have skin in the game and have validated your project with other stakeholders. Projects with strong co-funding commitments demonstrate broader support and receive favorable consideration.

Access to Nordic collaboration networks significantly extends the value beyond the grant amount. Rannís maintains relationships with innovation agencies, research institutions, and companies across Nordic countries. They facilitate partnerships that help you access expertise, markets, and resources throughout the region. For a small country like Iceland, these Nordic connections are essential for scaling innovations beyond the domestic market of 375,000 people.

The fund supports diverse project types within its priority areas. You might be developing sensors for monitoring ocean health, creating telemedicine platforms for remote healthcare delivery, building AI solutions for data analysis in specific industries, designing renewable energy systems optimized for challenging environments, or creating other technologies where Iceland’s unique conditions provide testing advantages.

Project timelines typically run 1-3 years from grant award to completion. Funding is disbursed in tranches tied to milestone achievement, not as a lump sum. You will work with Rannís to define specific technical, commercial, and operational milestones, then receive funding as you demonstrate progress. This milestone-based approach ensures accountability and allows course corrections if circumstances change.

Beyond funding, Rannís provides commercialization support including connections to potential customers and partners, guidance on intellectual property strategy, assistance with business planning and market analysis, and introductions to later-stage investors if your technology reaches that point. Iceland’s small innovation ecosystem means personal networks and introductions matter enormously, and Rannís sits at the center of those networks.

Who Should Apply

This fund targets Icelandic companies and research organizations at specific stages of technology development. You have moved beyond pure research into applied development with commercial objectives. The technology works in principle, and you are developing it toward products or services that customers will actually buy.

Icelandic presence is required. Your company must be registered in Iceland, or your research organization must be Icelandic, or you must be an Icelandic entrepreneur planning to establish a company. While projects can have international partners and global markets, the primary applicant and project leadership must be based in Iceland. This is Icelandic economic development funding, so benefits must accrue primarily to Iceland’s economy.

Innovation and commercial potential are the key evaluation criteria. Your project should represent genuine technological innovation, not just incremental improvements to existing solutions. The innovation might be in technology itself, application of existing technology to new problems, novel combinations of technologies, or new approaches to delivering value. Whatever the innovation, you must demonstrate clear commercial potential with identified markets and customers.

Team capability weighs heavily in funding decisions. You need credible technical expertise to execute the technology development, business or commercialization experience to translate technology into markets, and project management skills to deliver on time and budget. If you lack expertise in certain areas, demonstrate how you will address gaps through hiring, partnerships, or advisory arrangements.

Clear milestones and planning are essential. Your application should articulate specific technical objectives, commercial goals, and operational milestones. What will you achieve in year one? Year two? How will you measure progress? What are the critical risks and how will you address them? Vague plans signal poor preparation; detailed, realistic plans demonstrate serious thinking.

Co-funding sources must be credible. Show that you have secured or have strong prospects for securing matching funds. This might include company resources, other public grants, private investment, or in-kind contributions from partners. Letters of commitment or intent from co-funding sources strengthen your application significantly.

Insider Tips for a Winning Application

Iceland’s technology funding is competitive, and applications require strategic positioning to succeed. Here is how to strengthen your chances.

Align Explicitly with Priority Sectors: Rannís identifies specific priority areas like blue economy, health tech, and digital solutions. If your project fits these priorities, make that alignment obvious from the first paragraph of your application. Reference specific challenges in those sectors that your technology addresses. Demonstrate understanding of why Iceland prioritizes these areas and how your project contributes to national goals.

Emphasize Iceland as Testbed: One of Iceland’s competitive advantages is serving as a living laboratory for technologies before global scaling. If your technology benefits from testing in Iceland’s unique environment (geothermal energy, remote healthcare challenges, marine resource management, small market for controlled rollout), emphasize this explicitly. Show how lessons learned in Iceland enable subsequent international deployment.

Demonstrate Nordic Market Potential: The domestic Icelandic market is tiny, so reviewers want to see clear pathways to Nordic and international markets. Describe specific opportunities in Norway, Sweden, Denmark, or Finland where your technology addresses similar challenges. Include letters from potential Nordic partners or customers if possible. Show that Iceland is your starting point, not your ending point.

Present Realistic Technical Roadmaps: Be honest about technical risks and development timelines. Technology development always takes longer than expected, and experienced reviewers know this. A roadmap that acknowledges challenges and includes contingency plans is more credible than one claiming everything will work perfectly on schedule. Show you have thought through what could go wrong and how you will adapt.

Show Strong Co-Funding Commitments: The stronger your co-funding, the more competitive your application. If you have secured matching grants from other sources, committed private investment, or substantial company resources, emphasize this prominently. If your co-funding is still pending, include strong letters of intent or expressions of interest demonstrating serious prospects.

Leverage Existing Relationships: Iceland’s innovation ecosystem is small and relationship-driven. If you have existing collaborations with Icelandic research institutions, companies, or organizations, highlight these. If you have previously received support from Rannís or other Icelandic programs, describe what you accomplished and how this project builds on that success.

Address Sustainability and Impact: Beyond commercial success, Rannís values projects with positive social or environmental impact. If your technology addresses climate challenges, improves healthcare access, creates high-value jobs, or contributes to sustainable resource management, make these benefits explicit. Quantify impact where possible.

Application Timeline

The August 18, 2025 deadline is firm. Plan your preparation timeline accordingly:

May-June 2025: Begin preparation. Review program guidelines carefully. Assess whether your project aligns with priority areas and meets eligibility requirements. Start securing co-funding commitments from other sources. Gather documentation about your team, technology, market opportunity, and development plan.

July 2025: Draft your application. Write technical descriptions, commercial analysis, work plan, and budget. Develop your milestone definitions and success criteria. Have colleagues or advisors review drafts and provide feedback. Refine based on that feedback.

Early August 2025 (by August 15): Finalize and submit your application. Do not wait until August 18. Submit at least 3 days early to avoid last-minute technical problems. Ensure all required attachments and supporting documents are included.

August-October 2025: Rannís reviews applications. Initial screening eliminates applications that do not meet basic eligibility or are incomplete. Remaining applications undergo detailed technical and commercial evaluation. Reviewers assess technical feasibility, commercial potential, team capability, and strategic fit.

November 2025: Funding decisions announced. Successful applicants receive notification and begin contract negotiations. These negotiations define specific milestones, reporting requirements, IP arrangements, and disbursement schedules.

December 2025-January 2026: Grant agreements finalized. First funding tranches disbursed. Projects officially begin.

Funded projects typically run 1-3 years depending on scope. You will report progress regularly to Rannís, receive funding tranches as you achieve milestones, and work toward commercialization objectives defined in your proposal.

What Makes Applications Stand Out

Rannís evaluates many applications with limited funding available. Here is what distinguishes successful applications:

Strong Technical Credibility: Your technology should be defensible. Show that the technical approach is sound, key technical risks have been identified and addressed, your team has relevant expertise, and you have preliminary results or proof-of-concept data supporting feasibility. Technical reviewers can distinguish credible innovation from wishful thinking.

Clear Commercial Logic: Beyond technical innovation, successful applications demonstrate clear commercial thinking. Who are your customers? What problem are you solving for them? How much will they pay? Who are competitors and how do you differ? What is your go-to-market strategy? Vague commercial plans undermine otherwise strong technical proposals.

Realistic Resource Planning: Your budget and timeline should be credible. Experienced reviewers know what technology development costs and how long it takes. Unrealistically low budgets or aggressive timelines signal poor planning. Build in contingency for challenges and unexpected complications.

Strong Team Composition: Successful projects combine technical depth with commercial capability. If your team is purely technical, show how you will address commercial needs through advisors, partnerships, or planned hires. If your team is primarily commercial, demonstrate access to technical expertise needed for execution.

Strategic Alignment: Projects that align clearly with Iceland’s strategic priorities and leverage Iceland’s unique advantages receive favorable consideration. Show you understand why Iceland invests in your sector and how your success contributes to national goals.

Common Mistakes to Avoid

Applying with Pure Research Projects: This fund targets applied technology development with commercial objectives, not basic research. If you are still doing fundamental research without clear path to commercial application, apply to research-focused programs instead.

Ignoring Co-Funding Requirements: Applications without credible co-funding plans are weak. Secure commitments from other funding sources before applying, or at minimum demonstrate strong prospects with letters of intent.

Weak Market Analysis: Technical innovation without commercial validation is not fundable under this program. Show you have talked to potential customers, understand your market, and have realistic pathways to revenue.

Overly Ambitious Timelines: Claiming you will complete complex technology development in 6-12 months when similar projects typically take 2-3 years undermines credibility. Be realistic.

Generic Applications: Applications that could be submitted anywhere, without specific connection to Iceland or the fund’s priorities, signal lack of serious preparation. Tailor your application specifically to this program and its objectives.

Missing the Deadline: Late submissions are not accepted. Submit early to avoid problems.

Frequently Asked Questions

What technology stages does the fund target? The fund supports applied technology development from late proof-of-concept through pilot deployment. Pure research and fully commercialized products are outside scope.

Can non-Icelandic companies apply? No. Primary applicants must be Icelandic companies, research organizations, or entrepreneurs. However, projects can include international partners in supporting roles.

How much co-funding is required? Typically 30-50% of total project costs must come from other sources. The exact percentage depends on your project and circumstances.

What happens if we do not achieve milestones? Grant agreements specify milestone requirements. If milestones are missed without good explanation, future funding tranches may be withheld and you may need to return unused funds.

Can we apply for subsequent funding if this project succeeds? Yes. Rannís has multiple programs supporting different stages. Successful technology development under this program can lead to follow-on funding for commercialization or scaling.

How competitive is selection? Rannís does not publish acceptance rates, but with limited funding and many applicants, expect significant competition. Strong applications addressing all evaluation criteria are essential.

What intellectual property arrangements apply? IP typically remains with the applicant, though grant agreements may include provisions around licensing if technology serves strategic national interests. Specific IP terms are negotiated case-by-case.

Can we use the grant for international activities? Yes, if activities contribute to project objectives. International partnerships, market testing, or expert consultations can be eligible expenses if justified and reasonable.

How to Apply

Ready to apply for the Technology Development Fund? Start by carefully reviewing whether your project aligns with the fund’s focus areas and meets eligibility requirements.

Develop a comprehensive project plan including technical objectives, commercial goals, detailed budget, realistic timeline, milestone definitions, team descriptions, and risk assessment. The quality of your plan directly affects your competitive position.

Secure co-funding commitments from other sources. Strong co-funding demonstrates broader validation and significantly improves your chances.

Review complete program guidelines and application requirements on the Rannís website. The site provides detailed instructions, evaluation criteria, and contact information for questions.

When ready to apply, visit the official Rannís application portal:

Apply to Technology Development Fund

Questions about eligibility, application requirements, or project fit? Contact Rannís through the information provided on their website. They respond to inquiries and can provide guidance before you invest time in a full application.