Your middle script element contains several errors.
This line:
window.setTimeout(add(), 60 * 1000);
should be:
window.setInterval(add, 60 * 1000);
setTimeout() calls a function exactly once. setInterval() calls a function repeatedly. Also note that I've removed the () after add - with parentheses it calls the function immediately and passes its result to setTimeout() or setInterval(), but you want to pass the function itself so just use the function name with no parentheses. (And the window. part is optional).
Then this line:
add()
should be:
function add()
And this:
var += 1;
should be:
time += 1;
// OR
test += 1;
(I'm not sure which variable you intend to increment.)
Also you never call the startTimer() function.
Finally, in your add() function you'd need to actually output the value. document.write() is almost never a good idea, so I'd suggest creating an element on your page to hold the number and updating its content:
<div id="timer"></div>
document.getElementById("timer").innerHTML = time; // or = test; (whichever var you want)
Demo of all of the above: http://jsfiddle.net/Y3XMk/
Or the same effect with simplified code: http://jsfiddle.net/Y3XMk/1/