The Government will set aside $2 billion to set up an Innovation & Technology Venture Fund for co-investing with private venture capital funds on a matching basis in local innovation and technology start-ups, Secretary for Innovation & Technology Nicholas Yang says.
It was one of the initiatives in the 2016 Policy Address to support innovation and technology development.
Speaking at a press conference to elaborate on the initiatives, Mr Yang said the Venture Fund will encourage private venture capital funds to invest in start-ups by reducing the risk for them.
He said, in addition to securing capital, the Venture Fund can also enhance the ecology for start-ups by bringing in the professional knowledge and business network of private funds.
Similar co-operation models are found in other countries, such as Ireland, Finland and Singapore, Mr Yang added.
The Policy Address has also earmarked $2 billion to further encourage University Grants Committee-funded institutions to carry out more mid-stream applied research projects.
Another $500 million is set aside for the Innovation & Technology Fund for Better Living to finance projects that make use of innovation and technology to improve daily life.
Cyberport will allocate $200 million to launch a Cyberport Macro Fund for investment in its information and communications technology start-ups.
The Government will support the expansion of the Science Park and identify sites near the Liantang/Heung Yuen Wai Boundary Control Point for the further development of the Science Park and industrial estates to facilitate "re-industrialisation".
The number of free Wi-Fi hotspots will be doubled within three years and free Wi-Fi services will be offered at all youth service centres and study rooms run by the Government and non-profit-making organisations.
The Government will also work with schools to improve their Wi-Fi services to support e-learning.
