Hong Kong in Strong Position to Become Innovation and Technology Hub

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July 6, 2009 - The Hong Kong Special Administrative Region Government has put in place a wide range of funding and infrastructural support to develop Hong Kong into a regional innovation and technology hub, Assistant Commissioner for Innovation and Technology, Mr. Nicholas Chan, said today.

Speaking at the 6th Asialics International Conference on “Linkages in Innovation Systems: Global and Local Perspective” at the Hong Kong University of Science and Technology, Mr. Chan said Hong Kong possessed some unique advantages that would facilitate market development.

“Hong Kong enterprises have a strong presence in the Pearl River Delta and they have good understanding of both the Mainland market and the world market,” said Mr. Chan. “Furthermore, the preferential treatment under the Closer Economic Partnership Arrangement has facilitated further industry collaboration between Hong Kong and the Mainland with each contributing its unique advantages. Hong Kong can also make good use of the advantage of the Pearl River Delta region in manufacturing and the vast Mainland market to achieve economies of scale for research and development (R&D) products.”

Mr. Chan noted that the Innovation and Technology Fund set up in 1999 had supported 1,436 applied R&D projects carried out by universities, research institutes and industry, with a total approved funding of about HK$4 billion (US$512.82 million) in different technology areas.

In addition, Mr. Chan said, “The five R&D centers set up in April 2006 have been actively seeking collaboration with industry. They have kick-started over 200 R&D projects with a total approved funding of over HK$1 billion (US$128.2 million) in areas of high market potential.

“There are now more than 260 overseas and local technology companies in the Science Park. Indeed, one of the most successful aspects of the Science Park is the clustering effect that has allowed companies located there to develop relationships both within and across technology sectors,” he added.

Mr. Chan noted the encouraging trend that business was attaching greater emphasis to R&D activities. In 2007, 12,673 R&D personnel were employed in the business sector, representing a marked increase of 70% compared with 7,454 R&D personnel in 2003. Business R&D expenditure had also increased markedly by 74%, from HK$3.5 billion (US$448.7 million) in 2003 to HK$6.1 billion (US$782 million) in 2007.

Mr. Chan said that following the recommendations of the Task Force on Economic Challenges, the Government had recently decided to step up support for the development of innovation and technology.

“We will actively explore the possibility of new financial or tax incentives to encourage the private sector to increase investment in research and development; enhance technological infrastructure by exploring the development potential of Science Park Phase 3 and facilitating the revitalization of the use of industrial estates in meeting the demand from technology industries; provide more resources to the five R&D Centres to roll out more applied R&D projects and to strengthen their work in commercialization through funding programs; and continue to reinforce technology collaboration with Shenzhen under the Shenzhen-Hong Kong Innovation Circle and jointly attract more R&D establishments into the region,” he added.