On many innovation indicators, Iceland ranks among the top OECD countries, and it enjoys high per capita income and robust economic growth. While labour productivity levels still lag those of the United States, growth in labour productivity rose to 3.2% a year over 2001 to 2006. Resource-based industries and services form the basis of the Icelandic economy. As a result, measures of technological and knowledge intensity are often below the OECD average. However, the country has a complex and well-developed innovation system with a variety of actors from government, industry and the science community. Its innovation performance is robust, with a large share of firms introducing new-to-market product innovations. The small internal market (a population of just over 300 000) has stimulated many companies to internationalise, and international linkages are a notable element of the innovation system.