IceTec traces its history back to the mid-20th century, to the vocational department of the University of Iceland. Part of it became an independent institution, the Industrial Research Institute, in 1965 and moved in 1971 to new premises in Keldnaholt where operations continue to this day.
In 1978, the Industrial Research Institute was merged with the Industrial Development Institute and the Industrial Affairs Institute to form Iðntæknistofnun, the Technological Institute of Iceland, known in English as IceTec. In 2007 it was merged with Rannsóknastofnun byggingariðnaðarins (the Building Research Institute, Rb), often searched for as Rannsóknarmiðstöð byggingariðnaðarins. The result was Nýsköpunarmiðstöð Íslands, Innovation Center Iceland. It was dissolved on 1 July 2021 and Tæknisetur was founded. IceTec took over the technology departments, their equipment and the Keldnaholt premises.
IceTec now employs numerous specialists across a wide range of fields. IceTec serves startups, performs testing in materials technology, assists with prototyping and conducts various research projects.
IceTec is located in two buildings, Árleyni 2 and Árleyni 8 in Keldnaholt, and there are currently around 40 startups in the area.