Research and development create new products and services that can generate wealth and quality jobs for Hong Kong people.
Secretary for Innovation & Technology Nicholas Yang made the statement in a press conference today to elaborate on the innovation and technology measures outlined in the 2017 Policy Address.
Mr Yang said: “In research and development, we have set a target to increase the resources for R&D in the next five years to $45 billion per year, with a view to doubling the ratio of Gross Domestic Expenditure on R&D from 0.73% to about 1.5%.”
He added the funding boost will enable local universities to launch more R&D projects, including those that could not proceed due to a lack of resources.
“A super tax deduction will be introduced to encourage the private sector to invest more on R&D.
“The first $2 million of eligible R&D expenditure will enjoy a 300% tax deduction (with) the remainder at 200%.
“We believe this is a right policy to stimulate private sector investment and flip the ratio of public versus private sector expenditure on R&D, from government-led to private-sector-led.”
Commissioner for Innovation & Technology Annie Choi said any company which is conducting R&D can file their R&D expenses for tax reduction in their tax returns.
The Steering Committee on Innovation & Technology to be chaired by the Chief Executive shows the Government's commitment to driving I&T development in Hong Kong, Mr Yang added.
