IT Bureau

1. Innovation and Technology Bureau
Dr David Chung EngD, JP
Under Secretary for Innovation and Technology

2.  The HKSAR Government is determined to develop
local innovation and technology (“I&T”) to
 Transform Hong Kong into a knowledge-based economy
 Diversify our economy and increase our competitiveness
 Provide quality employment opportunities, especially for our youth
 Improve quality of life for Hong Kong people
Why Innovation & Technology?
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3.  Both a Connector and a Facilitator, but not a Player
 Connector:
 Super-connector of Mainland and overseas
 Collaboration between Government, academia, business and research sector
 Facilitator:
 Private sector will take lead in driving economy growth
 Attracting international talent and institutions to come to Hong Kong
 Create an ecosystem conducive for I&T development
 Focus on where Hong Kong has strengths and advantages
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Government’s role and focus

4. Hong Kong’s strengths and opportunities (1)
 World class universities and ability to attract best global
talents
 Karolinska Institutet of Sweden: first overseas research facility in Hong Kong
 MIT: first overseas Innovation Node in Hong Kong
 Strategic location, proximity to the Mainland market
 Combined advantages of “One Country, Two Systems”
 Intellectual property protection, robust legal system and
independent judiciary, international financial center
 Advanced ICT infrastructure, robust city management
 Experience and expertise in manufacturing still with Hong
Kong industrialists
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5. Hong Kong’s strengths and opportunities (2)
 Increasingly vibrant start-up ecosystem
 No. of accelerators, incubation and co-working spaces increased ten-fold in the
past 6 years, mostly operated by private sector
 About 1600 I&T start-ups in Hong Kong in 2015, 50% growth compared to 2014
 Growth of Hong Kong’s start-up ecosystem ranked #5 globally in 2015
 Deal flow increasing, promising homegrown start-ups emerging:
 3 in Forbes “30 under 30 Asia”, WeLab (almost unicorn)
 China’s 13th Five-Year Plan
 Innovation takes center stage
 Encourages “mass entrepreneurship and innovation” 「大眾創業、萬眾創新」
 Strategic policies of “Internet +” and “Made in China 2025”
 One Belt One Road Initiative「一帶一路」建設
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6. Hong Kong’s challenges
 Competitiveness of traditional pillars challenged by global
Internet-driven economy
 Over 90% of businesses are SMEs, with relatively low
investment in private sector R&D compared to public
sector
 Competitions from neighboring economies, and Mainland
cities
 Lack of manufacturing base
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7. Place Approximate Ratio of public and
private investment in R&D in 2013
Hong Kong 6 : 4
France 4 : 6
Singapore 4 : 6
Finland 3 : 7
Sweden 3 : 7
Germany 3 : 7
China 1 : 3
Taiwan 1 : 3
South Korea 1 : 3
United States 1 : 3
Source: Eurostat; Agency for Science, Technology and Research (A*STAR), Singapore; OECD Main Science and
Technology Indicators; Ministry of Science & Technology of the People’s Republic of China; Ministry of Science and
Technology (Taiwan); National Science Foundation, U.S.A.
Investment in R&D
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8. • HK$2 billion Midstream Research Programme for
UGC-funded institutions
– More translational research
– Theme-based, longer term R&D
• HK$2B I&T Venture Fund
– Addresses “pre-series A Gap” funding in existing ecosystem
– Leverages on experience and networks of VCs: Smart Money
– Government acts as Limited Partner
• HK$500M I&T Fund for Better Living
– Encourage the use of ICT for the underprivileged, promoting digital
inclusion
• Increasing the cash rebate level of the R&D Cash Rebate
Scheme to 40%
– equivalent to 300% tax deduction
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Stimulate Private Sector R&D Investment

9.  Build a robust and sustainable ecosystem to encourage
local I&T start-ups
Support I&T start-ups
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10. Startup Demographics
Average
Founders Age
Women
Founders
Source: http://startup-ecosystem.compass.co/report-download/

11. Lifecycle Position
Source: http://startup-ecosystem.compass.co/report-
download/

12.  Develop high value-added industries and manufacturing
processes in
 Robotics
 Smart City
 Healthy Ageing
 Attract high value-added manufacturing industries
 Science Park expansion
 New industrial estate policy: multi-storey buildings
 New sites near Liantang / Heung Yuen Wai Boundary Control Point (long
term)
Drive “re-industrialization”
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13. Smart City development
 Smart City refers to the adoption of technologies such as the
Internet of Things and Big Data analysis in promoting city
planning, construction, management, services, development,
etc., with a view to building a compact, livable,
environmental friendly and sustainable city
 Formulate a digital framework and standards for the
development of Smart City
 Encourage public service bodies and commercial
organisations to open up more data
I&T and daily living

14.  Three-year Pilot Technology Voucher Programme for SMEs
 on a 2:1 matching basis
 a maximum subsidy of $200,000 per each SME
 Expanding coverage of the Public Sector Trial Scheme to
incubatees of Cyberport and Science Park
Adoption of technology among SMEs
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Science Park

15.  Talents are the most crucial success factor in developing I&T
 Existing measures
 Schemes under ITF that encourage young people to
undertake innovative and entrepreneurial activities
 Incubation programmes under Science Park and Cyberport
 Enrichment programmes and various activities in the school
sector
 Through attracting top-notch international scientific research
institutions in Hong Kong, we hope to inspire young people to join
the I&T force
Nurture talents

16. https://www.facebook.com/ITBHK
www.itb.gov.hk
Thank you
david.chung@itb.gov.hk