City bets big on innovation, technology
Hong Kong is betting big on doing all it can to improve its competitive edge as a worldleading technological and innovative center.
Chief Executive Carrie Lam Cheng Yuet-ngor told a summit in the city on Friday that Hong Kong was well-known as a “gateway and super-connector” to the rest of the world.
“Hong Kong is known for its respected legal system, low and simple taxation, a well-established financial network, free trade and free information flow, coupled with sophisticated intellectual property protection, a comprehensive services sector as well as a well-educated workforce,” Lam added.
“While we have established ourselves as a world-renowned financial hub and a platform for cultural exchange, we have what it takes to play a bigger part in technology and innovation development,” she said.
“The city is looking to gain momentum from the country’s fresh spate of grand plans, including the Belt and Road Initiative, the GuangdongHong Kong-Macao Greater Bay Area plan, and ‘Made in China 2025’ — a master plan to boost manufacturing innovation and promote home-grown products,” Lam noted.
The summit was organized by Friends of Hong Kong Association — one of the city’s leading think tanks founded in 1989 and currently chaired by Four Seas Group founder Stephen Tai Tak-fung. It invited nearly 200 young entrepreneurs from across the Chinese mainland, Hong Kong, Macao and Taiwan to share their insights on prospects for technology, innovation and entrepreneurship.
Hong Kong spends only 0.73 percent of its GDP on research and development, far behind the 4.23 percent in South Korea, 3.28 percent in Japan and 2.07 percent on the mainland, latest World Bank data shows.
In this year’s Policy Address, Lam pledged to double R&D expenditure to 1.5 percent of GDP within five years, which would translate into HK$45 billion by the end of the current government’s term in 2022.
To achieve this bold target, Lam has proposed a tax deduction scheme. This would let private companies which invest in technological R&D enjoy a 300 percent tax deduction for the first HK$2 million of eligible R&D expenditure, and 200 percent for the remainder.
Lam said the government will do more to cultivate and sustain innovation and technology talents.
It has set aside no less than HK$10 billion for university research funding. It will provide additional tax deductions for R&D expenditure incurred by enterprises.
The Innovation and Technology Bureau plans to launch a HK$500 million Technology Talent Scheme, which will include establishment of a postdoctoral hub.
The Education Bureau will make HK$3 billion available to provide places for Hong Kong students admitted to University Grants Committee-funded research postgraduate programs.
Lam believed a higher level of bilateral collaboration between Shenzhen and Hong Kong will bolster the two cities’ visions of becoming the magnet for promising worldwide tech talents and startups.