issn 1011 8888 institute of economic studies working paper series w02 10 december 2002 a microstate with scale economies the case iceland tryggvi thor herbertsson and gylfi zoega address university email tthh hi is department economics birkbeck college london g econ bbk ac uk abstract this looks at importance defined in terms benefits from innovation both theoretical an empirical perspective we argue that one can only gauge degree industry level by taking account specialization hence reliance on international trade as well size economy show fishing results sector which ranks 13th world belying small population overall not surprisingly bulk r&d focused providing ever expanding
