Hong Kong is committed to enhancing and promoting its competitiveness in the new knowledge-based economy by investing in education, offering infrastructural support, and funding research and development programmes.

Speaking in the Legislative Council today, Secretary for Commerce, Industry & Technology John Tsang said although Hong Kong's ranking in the World Knowledge Competitiveness Index has descended from 87 in 2002-03 to 102 in 2003-04, Hong Kong ranks higher in certain individual indices.

Hong Kong's rankings in per capita expenditure on research and development performed by Government, employment in high-technology services per 1,000 inhabitants, and employment in IT and computer manufacturing per 1,000 inhabitants are 34, 17 and 27 respectively.

A wise investment

To enhance our competitiveness, Hong Kong has invested substantial resources into academic research over the last decade.

Earmarked money for the Research Grants Council has risen from $100 million in 1991-92 to $578 million in 2003-04, he said, while the number of University Grants Committee-funded Research Postgraduate places has grown from 1,285 to 4,315.

Census & Statistics Department figures show that the number of local patent applications rose from 1,092 in 1991 to 9,226 in 2001. The average annual growth rate was 24%.

Mr Tsang said recurrent expenditure on education represents 23.8% of the recurrent Government expenditure in 2003-04. Total expenditure on education has risen from 3% of GDP in 1996-97 to 4.8% in 2003-04.

Total expenditure on basic education has grown from $23.1 billion in 1996-97 to $41.7 billion in 2003-04 whereas the figure has increased from $14.8 billion to $19.3 billion in 2003-04 for tertiary education during the same period.