Shenzhen’s innovation accolade seen to spark HK tech rush
Shenzhen’s position, spelt out as the “capital of innovation” in the Guangdong-Hong Kong-Macao Greater Bay Area blueprint, will help Hong Kong’s technological development and drive more businesses to set up offices on the Chinese mainland, experts and professionals said.
The much-anticipated Bay Area development plan, released late on Monday, sets a clear development direction for the 11 cities involved, with the aim of turning the region into a world-class economic powerhouse and innovation and technology hub.
Hong Kong, Macao, Guangzhou and Shenzhen are identified in the blueprint as the core engines for development.
Song Ding — director of the Tourism and Real Estate Industry Research Center at Shenzhen-based think tank China Development Institute — believes Shenzhen has been given high expectations and hopes in the Bay Area’s long-term development.
One of the plan’s key words for Shenzhen is “innovation”, he noted.
Shenzhen’s position is to “leverage its leading role as a special economic zone, a national economic core city and a national innovation city, expedite its transformation into a modern and international city, and strive to become a capital of innovation and creativity with global influence”.
“Pinning innovation as a core competitive value does not appear in describing the positions of Guangzhou and Hong Kong,” Song noted.
“And, in the long-term development goal to 2035, the plan stresses the Bay Area should become an economic system and mode of development mainly supported by innovation,” he said.
Mao Yanhua — a professor at the Center for Studies of Hong Kong, Macao and Pearl River Delta at Sun Yat-sen University in Guangzhou — said technology and innovation is one of the key areas of cooperation between Hong Kong and Shenzhen.
“While Hong Kong desires to develop high valued-added industries, Shenzhen has been developing fast in high-tech. So, the two have the foundation for cooperation,” he said.
“But, to facilitate deep cooperation, we need to address an important issue — the flow of technology elements, such as flow of capital, information, talents and transfer of research achievements.”
From a broader perspective of Shenzhen-Hong Kong cooperation, Mao stressed that bridging the gap in differences in institutions and market rules is the primary thing. That involves, among other things,
intellectual property protection, professional services standards, and recognition of qualifications.
Legal cooperation is another key area, he added. “Shenzhen and Hong Kong should deepen cooperation in judiciary and legal services, intellectual property protection and dispute settlement to create a legal and international environment in the region,” Mao said.
Catherine Tsang — partner and adviser on China tax and business at PwC China — reckons that with a favorable business and living environment, the Bay Area is expected to attract more international businesses to settle down there.
“The blueprint covers the entire process for the development of a new product, including technology innovation, manufacturing and
financing. International companies would be willing to establish their R&D centers in the area,” Tsang said.
She pointed out that the high-end service industry also stands to benefit, suggesting it’s an opportunity for those who already have businesses in Hong Kong or Macao to expand to the Bay Area directly.
For the next stage of development, she said many multinational companies are now paying close attention to policy details for facilitating population and logistics mobility, such as tax, customs clearance and visa arrangements.
She’s confident that related regulations will be implemented this year.