China Daily Global Edition (USA)
Policies pay off
Hong Kong’s governmental initiatives boost innovation
Ayear after Carrie Lam Cheng Yuetngor, Hong Kong’s fourth chief executive, took office, policies introduced to bolster the tech sector are playing a major role in the promotion of innovation and technology in the city.
According to stakeholders in the sector, the government’s initiative has boosted optimism about the future among the younger generation, which was once concerned about a lack of opportunities, and promoted a more relaxed social atmosphere.
Lee George Lam, chairman of Cyberport, a governmentrun innovation incubator involving more than 1,100 digital technology companies, said the confidence and determination to develop innovation and technology has grown thanks to the government’s strong support.
He noted that Cyberport was home to about 600 startups two years ago, but now the number has almost doubled.
Hong Kong now boasts more than 2,000 tech startups, half of which are being developed with the help of Cyberport, he added.
The Technology Talent Admission Scheme, which was announced in May, has helped to shorten the visa application process for hiring nonlocal tech talent by the adoption of a quota system rather than a personal basis. After the plan was unveiled, Cyberport received more than 50 applications even before the quota application process formally opened.
Given the shortage of talent in Hong Kong, the quota of 1,000 is a good start, according to Lee George Lam. “But the most important thing is to have successful applications as soon as possible, so entrepreneurs will realize how effective the program is,” he said.
Making talent a priority
Soon after Carrie Lam gave her maiden policy address in October, the government announced it would provide 8,360 square meters of shared working space, and also provide young entrepreneurs with rents 50 percent lower than the market rate through partnerships with private operators.
Under the plan, Cyberport launched applications for the Smart-Space 8 program on June 1. The program provides 1,858 sq m of work space in Tsuen Wan, in the Western New Territories, at prices starting at HK$800 ($102), including 60 sets of flexible spaces, 48 workstations and 34 office units.
Cyberport has received applications from about 1,000 interested parties, including those in the fields of education technology, financial technology, marketing technology and e-commerce.
Welcoming these policies, Lee George Lam said he hoped the government would mobimarket lize more private capital to invest in the innovation and technology sector in future.
He noted that the Hong Kong Stock Exchange introduced an updated IPO policy in May that allows biotechnology companies without a profit record to be listed in Hong Kong, and urged financing institutions to provide easier financing channels for companies in areas such as financial technology, artificial intelligence and smart cities.
He praised the progress the city’s innovation and technology sector has made in the past year, not just in terms of policy and funding, but also in helping young people become more positive about their futures. The government has clearly helped to provide a range of career options, he said.
Lavina Tien, general manager at Entrepreneur First Hong Kong, a global tech startup accelerator, echoed those sentiments, pointing out that 10 years ago most parents in Hong Kong would urge their children to join large, well-known companies after graduation.
“But now they are more open-minded about their kids starting their own businesses,” she said. “The change in mindset is just as important as improvements in hardware.”
Tien suggested that the government should raise awareness of its policies by giving them more publicity to make it easier for people to navigate them and digest the details.
Policies and publicity
That point was reinforced by Irene Wong Oi-ling, CEO of Ix Fintech, an incubatee at Cyberport. She said she wanted to apply for assistance from the Postdoctoral Hub plan under the Technology Talent Scheme, but found the details hard to follow.
Wong’s company has fewer than 10 employees, and she would like to see the government encourage large companies and institutions in different sectors to have more regular communication with startups in relevant areas, making it easier to spot their achievements.
“And there has to be a body to steer and coordinate resources in certain industries … to make strategic decisions on how to better explore the market and strike a balance on the different interests of each player,” she said.
Wong also urged the government to facilitate business exchanges and collaboration with cities in the GuangdongHong Kong-Macao Greater Bay Area.
The Chinese mainland is home to world-class technology and manufacturing industries, while Hong Kong has the edge when it comes to art, design and innovation, she said. “The combination of both would stimulate unimaginable power,” she added.
Belt and Road boost
Raymond Yeung Chi-ho, founder of Riverland Enterprise Co, a digital marketing technology company, is interested in opportunities brought about by the Belt and Road Initiative and the development of the Bay Area, by which he hopes to help more overseas companies enter Asia’s markets.
Yeung’s company is also an incubatee of Cyberport, and he hired his employees via the government’s Innovation and Technology Fund. He is planning to apply for one more staff member via the fund, and is hoping the government will introduce funds to help startups hire executive and professional talent to aid expansion.
Francis Fong Po-kiu, honorary president of the Hong Kong Information Technology Federation, said the government should provide more funding and policy support, and also pay attention to internal coordination and reviews of existing policies.
He noted that policies are usually implemented by a combination of government departments and bureaus. Although the chief executive has set up an internal steering committee on innovation and technology to guide cooperation within the government at senior levels, Fong said the existing policies should also embrace the progress of new policies, which will require more horizontal coordination between departments.
He suggested that the government should direct resources to areas where the city has advantages, such as software and information security.
“Resources are not unlimited, so you can’t just put money into popular areas and wait for the market to respond,” he said.
Now they (parents) are more open-minded about their kids starting their own businesses.” Lavina Tien, general manager of Entrepreneur First Hong Kong