Research and Development: Overcoming Challenges in Hong Kong's I&T Landscape

Enhancing Research and Development in Hong Kong

Research and development is a fundamental aspect for Hong Kong to evolve into a leading global innovation and technology (I&T) hub, akin to Silicon Valley. Minister Sun Dong stated that while the government has initiated essential steps, further advancements are necessary for translating efforts into economic growth. In a recent radio discussion, he noted that Hong Kong must attract private capital to foster I&T development, emphasizing that time is of the essence as the government navigates fiscal challenges.

The Need for Increased Investment

According to Sun, Hong Kong has invested over HK$200 billion (US$25.6 billion) into I&T in recent years, which accounts for just over 1% of the city's GDP in 2022. While this is a positive start, it pales in comparison to mainland China’s 2.7% and Shenzhen's remarkable 5% expenditures. This disparity illustrates the urgent need for heightened R&D investments within local enterprises.

Creating a Virtuous Cycle

Encouraging companies to invest in research and development can lead to a virtuous cycle where significant demand for technology drives further investment and industry growth. Hong Kong aims to channel its limited resources into specific I&T sectors, with dedicated initiatives like Cyberport focusing on digital technology and the Science and Technology Park dedicated to R&D.

Future Prospects and Strategic Plans

The proposed San Tin technopole is set to establish a pivotal I&T hub near the border with mainland China, aiming to attract vast international I&T resources. Sun highlighted the importance of the Hetao Shenzhen-Hong Kong Science and Technology Innovation Cooperation Zone, which intends to create a world-class industrial transformation base. Sun anticipates that further details on these initiatives will be revealed by year-end.