2022 | StartupBlink View the Global Startup Map p. 174 41 | Iceland The small nation of Iceland has had an amazing year, jumping no less than 14 spots to rank 41st globally and 9th in Northern Europe. Not only does this jump position Iceland well within the world's top 50; it is the biggest jump among all countries in the top 50 this year. Iceland deserves commendation for outranking countries with substantially larger populations and economies, and for keeping up the positive growth of its startup economy for the third year in a row. Reykjavik is the highest and only ranked city in Iceland, registering a 12 spot increase to 209th globally and approaching the world's top 200. As our analysis in the Top Island Cities chapter reveals, Reykjavik is the 2nd highest ranked island city, and the highest ranked island city in the population tier of 100k - 300k. Reykjavik ranks in the global top 100 for the Social & Leisure industry. Iceland breaks into the top 50 for the first time. 2020 2021 2022 Regional Rank Startup Ecosystem Ranking Global Rank National Rank and Change City Global Rank and Change Total Score Overperforming Industry 1 Reykjavik 209 3.871 Social & Leisure 86 +12 − For more information about the rankings of cities, view the country dashboard on Startublink.com. Startup Ecosystem Overview The Icelandic startup ecosystem is impressive, especially considering the country’s demure size and population of just over 360,000. A harsh climate compels Iceland to build strong physical infrastructure, which has fostered an innovative spirit born from necessity. Icelandic entrepreneurs are also compelled to have a global focus from the beginning, given the country’s small consumer market. In addition, Iceland values education, and the nation is well known for high literacy rates and skilled tech workers. Iceland developed the entrepreneurial spirit of its population and shifted from the traditional employment model towards the gig economy, even in the IT sector which offers much more flexibility.