Innovation and technology opportunities increasing in Hong Kong

The administration has planned increased investment and a series of programmes in technology sector, which means there will be more investment and opportunities not only in Hong Kong SAR but also in the wider Greater Bay Area (GBA). This will encourage more companies to get involved in the sector and to grow innovation in biomedicine, green tech and sustainability.

According to the Hong Kong budget speech 2022-23, the Hong Kong SAR administration has invested over HK$130 billion (US$17bn) into the I&T sector.

Besides the HK$2bn Innovation and Technology Venture Fund, the administration set up the Corporate Venture Fund and the Cyberport Macro Fund via the Hong Kong Science and Technology Parks Corporation (HKSTPC) and the Cyberport respectively. The administration will allocate the Hong Kong Growth Portfolio under the Future Fund by HK$10bn, of which HK$5bn will be used to set up the Strategic Tech Fund.

It also has planned to increase its subsidy of the Technology Start‑up Support Scheme for Universities under the Innovation and Technology Fund (ITF) to HK$16 million. The increased subsidy will be provided on a one-for-one basis to start-ups at universities with private investment.

The number of I&T start-ups rose from over 1000 in 2014 to over 4000 in 2021, while venture capital investment in Hong Kong increased from HK$1.24bn to over HK$40bn.

Hong Kong SAR administration published the Smart City Blueprint for Hong Kong in December 2017 with a vision of developing Hong Kong SAR into a world-leading smart city. The Blueprint covers six areas - "smart mobility", "smart living", "smart environment", "smart people", "smart government" and "smart economy" -which included 70 initiatives. In 2020 it published the Blueprint 2.0 with over 130 initiatives on city management measures and services. Regulation of the digital economy is already underway.

Innovation in the Greater Bay Area gets more encouragement

The growth of I&T has extended to the Greater Bay Area (GBA), which has had more encouragement and opportunities since the late 2010s.

In China's National 14th Five-Year Plan, the Shenzhen-Hong Kong Innovation and Technology Cooperation Zone was incorporated into one of the four major platforms of cooperation in the Greater Bay Area (GBA). The Shenzhen-Hong Kong Innovation and Technology Cooperation Zone includes the Hong Kong SAR-Shenzhen Innovation and Technology Park and the Shenzhen Innovation and Technology Zone.

As part of the Hong Kong budget for 2022-23, the Hong Kong SAR administration and the Shenzhen Municipal People's government will jointly develop the Hong Kong SAR-Shenzhen Innovation and Technology Park at the 87-hectare Lok Ma Chau Loop, which will be the largest I&T platform in Hong Kong SAR. This soon to be developed northern metropolis of Hong Kong will no doubt further facilitate the flow of talent and scientific research resources across borders.

As of now, Hong Kong SAR has 16 state key laboratories and six Hong Kong branches of Chinese national engineering research centres, and 22 joint laboratories with the Chinese Academy of Sciences. The Hong Kong SAR administration has invested over HK$150bn in the I&T sector in the past four years, among which one third was used in research and development (R&D).

For I&T development in the GBA, the Hong Kong SAR administration aims to encourage Guangdong, Hong Kong SAR and Macao enterprises and scientific research institutes to participate in international I&T cooperation; to support technological infrastructure and technological innovation in the I&T sector; and to help with the flow of talent and resources. It also intends to facilitate R&D collaboration, including by enabling eligible higher education institutions and R&D institutes in Hong Kong SAR to apply for Mainland technology projects, and to use relevant funding in both places according to the regulations; to manage the cross-boundary use of medical data and bio-samples necessary for R&D collaboration projects; and to study facilitation measures relating to immigration to encourage exchanges between technological and academic talent.

Beyond the GBA, Hong Kong SAR has had collaborated further afield in I&T. In June 2022, the Hong Kong Monetary Authority and the Bank of Israel started working on a trial which will test a new digital currency, including against cyber security risks. In the meantime, China and Tanzania committed to continue collaborating in boosting the roll-out of ICTs in the country to ensure that the Chinese government's goal of developing a digital economy is met.