Software exports out of Iceland has been growing steadily over the past decade although it is not categorized in the data collected. Software gets tagged under “Other ICT goods” which is a shame because it is easily the fastest growing item in the total goods and services out of Iceland. Another important graph is the Current Account Deficit of Other ICT goods ie. Imports – Exports. This is showing a clear downward trend as well. The downward trend can be explained by my original hypothesis built on the Carlota Perez’s work on technology bubbles and their transformative effect on the underlying infrastructure. The deficit increases when there is a bubble formation ie excess capacity of infrastructure build up, then the new wave of companies build things on top of this infrastructure and create value thereby reducing the deficit. Perez’s Technologcial Surge Cycle explains the build up of excess capacity.