Financial Secretary Paul Chan

Before stepping into the future, we have to understand where we stand now. We all know the importance of innovation and technology, I&T in short, to our economy, as a strong impetus for growth. It diversifies our economy, and creates quality jobs for our people. And we are determined to build Hong Kong into an international innovation and technology hub, which is underpinned by the National 14th Five-Year Plan.

As many of you are aware, the Government has been spearheading efforts in a number of major areas to advance our I&T development, so that it would facilitate our economic transformation. We have poured in more resources for building more R&D (research and development) infrastructure and promoting R&D. We have implemented measures to attract more talent, revitalise our venture capital and private equity regimes, enhance government procurement policy to embrace more innovative products, as well as update our legislation. In the past five years or so, we have invested over $150 billion for I&T development. The results, to date, are clear and compelling, even amid the pandemic. Hong Kong startups soared from about 1,000 in 2014 to currently about some 4,000. Venture capital investment rose from $1.24 billion to nearly $42 billion. The number of people employed in the I&T sector rose by 30% to more than 45,000. We have also seen growing popularity of STEM (science, technology, engineering and mathematics) in education, with more university undergraduates majoring in related programmes. 

But in a world where competition for I&T talent and companies is very keen, we must do more. Allow me to touch on a few things that are working for Hong Kong and the future we can see.

We are working out a strategic plan, or a road map, that will set out the directions and objectives of Hong Kong’s I&T development in the coming five to 10 years. We plan to roll it out within six months of this new Government.

One priority of all these is to build up an overarching ecosystem for I&T. It is essential to promote cross-disciplinary and cross-jurisdictional collaboration among the Government, industry, academic and R&D sectors, so that we will be able to connect upstream research to midstream and downstream markets. Hong Kong has long been well regarded for excellence in research. But only when research outcomes are better integrated with commercialisation and products could we expect our I&T development to be more sustainably powered.

Another focus is I&T infrastructure. Under the Northern Metropolis Development Strategy, the Hong Kong-Shenzhen Innovation & Technology Park and the Lok Ma Chau/San Tin area will form the San Tin Technopole. The technopole, together with the Shenzhen I&T Zone, will rise as a world-class I&T hub, with Hong Kong at the fast-beating heart of it.

Joint venture in I&T infrastructure also signifies booming collaboration between Hong Kong and our sister cities in the Greater Bay Area (GBA). If Hong Kong wants to become a regional innovation hub, we must see each of our strengths and capitalise on them. Indeed, there is much room for Hong Kong and other GBA cities to work together, such as consolidating our I&T resources, including people and capital, and synergising our research capabilities and marketing potential.

But above all, people are the most valuable asset for I&T. Over the past month or two, in consultation sessions for the Chief Executive’s Policy Address, we have fully heard the need for Hong Kong to attract more talent and strategic enterprises to come here to help power our whole I&T sector. Rest assured, we will roll out measures to achieve this.

Ladies and gentlemen, we believe Hong Kong is on the right track for I&T. With all our endeavours and the strong support from our country, the future of Hong Kong as a regional innovation hub looks extremely promising.

Financial Secretary Paul Chan give these remarks at the Our Hong Kong Foundation Insight Forum: Hong Kong Way Forward - The Future of Hong Kong as a Regional Innovation Hub on September 13.