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Accelerating Growth of Innovation and Technology Ecosystem

Last night, I attended a special dinner gathering that brought together prominent figures from the global innovation and technology (I&T) sector, local university and research leaders, professors who recently returned to Hong Kong from overseas, and young people studying here. We enjoyed authentic Hong Kong dishes while exchanging views on I&T development and nurturing talent. This blend of I&T perspectives and local flavors beautifully embodies the two key elements for building a thriving I&T ecosystem: innovative ideas and talent attraction.

Last night, I attended a dinner in Sham Shui Po, where I engaged in discussions with friends from the I&T sector and local universities about the development of innovation and technology and the importance of nurturing talent.

We are living in an era of remarkable change driven by novel technologies. Artificial intelligence (AI) is transforming various industries. Generative software is streamlining paperwork, while large-scale data computing and predictive models are becoming increasingly prevalent in our daily lives. The application of AI and deep learning is expanding beyond the digital realm into the physical world, with robotics emerging as a key area of advancement.

Whether it involves cutting-edge innovations in the I&T sector or the practical application of research and development (R&D) outcomes, there is often a critical need for entrepreneurs and researchers to engage in dialogue with various stakeholders. This collaborative approach allows us to consider potential challenges and opportunities from multiple perspectives, fostering greater collaboration across sectors and industries.

Technological development has opened up new opportunities for young people to innovate and start their own businesses. Young people in Hong Kong and the sister cities of the Guangdong-Hong Kong-Macao Greater Bay Area (GBA) are in a uniquely advantageous position. According to the Global Innovation Index published annually by the World Intellectual Property Organization (WIPO), the "Shenzhen-Hong Kong-Guangzhou" cluster has ranked second globally for five consecutive years. Hong Kong benefits from the technological support of the GBA while also serving as an international financial centre. Technology and finance have become the two core pillar industries driving Hong Kong's development.

In recent years, during my visits to advanced economies in Europe and America, as well as emerging markets in the Middle East and the Association of Southeast Asian Nations (ASEAN), I have met with numerous foreign companies interested in Hong Kong's I&T development and its potential opportunities. They are keen to explore cutting-edge research and applications in the GBA, as well as the development of related manufacturing industries, in search of collaboration opportunities.

Hong Kong and its neighboring cities in the GBA are accelerating their collaborative development in I&T. Last week, the Hong Kong SAR Government released the "Development Outline for the Hong Kong Park of the Hetao Shenzhen-Hong Kong Science and Technology Innovation Co-operation Zone". A key focus of the Development Outline is about the "one zone, two parks" arrangement in the Hetao Cooperation Zone, namely the Hong Kong Park and the Shenzhen Park. Through proactive policy innovations, we aim to facilitate smoother, more efficient, and secure flows of personnel, materials, funds, and data between the two Parks. This will enhance the overall effectiveness of R&D, create better conditions for attracting enterprises, and accelerate the cultivation of new quality productive forces.

For instance, to enhance the flow of materials and promote industry-academia-research activities, the Development Outline suggests mechanisms such as "green lanes" and a "white list" to streamline clearance procedures for research materials and equipment entering and leaving the two Parks. This includes facilitating the transfer and handling of Mainland samples (including clinical biological samples) to the Hong Kong Park for research or testing purposes.

Regarding capital, a smoother and more convenient flow of funds is essential for attracting Mainland I&T enterprises to establish international headquarters or global research centres in the Hetao Cooperation Zone. The HKSAR Government will continue to actively collaborate with the relevant Mainland authorities to implement facilitation measures for the cross-boundary transfer of funds for Mainland enterprises settling in the Hong Kong Park. This aims to support the mutual financing of projects in the two Parks.

Moreover, in fields such as biotechnology, AI, and big data, the smooth flow of data will be crucial for industry growth. Provided that relevant national data security laws and regulations are adhered to and risks are managed, the HKSAR Government will explore expanding the cross-boundary flow of research data from the Mainland to Hong Kong. The data will be made available for use by research institutions and enterprises in the Hong Kong Park.

The construction of the first three buildings in Phase 1 of the Hong Kong Park development will be completed in stages starting at the end of this year. The initial group of tenants, representing industries such as life and health technology, AI, and data science, will begin moving in next year. The Greater Bay Area International Clinical Trial Institute (GBAICTI), wholly owned by the HKSAR Government, was opened last week in the Hong Kong Park, while the Greater Bay Area International Clinical Trials Centre in the Shenzhen Park was also officially opened on the same day. Through this joint collaboration platform and with a population base of 87 million in the GBA, we will be better able to attract more pharmaceutical and medical device enterprises, both locally and globally, to conduct clinical trials and apply for product registration in Hong Kong. It will also support the transition to a "primary evaluation" mechanism for drug application approvals, supporting the development of Hong Kong as an international health and medical innovation hub.

The rapid development of the Hong Kong Park within the Hetao Cooperation Zone is supported by the substantial resources and policy initiatives we have implemented for I&T in recent years. This includes the efforts of the Office for Attracting Strategic Enterprises, which focuses on drawing key enterprises and investment, as well as the Hong Kong Investment Corporation, which utilises "patient capital" to facilitate access to market funding. Furthermore, recent initiatives announced in the Chief Executive's latest Policy Address, such as the I&T Industry-Oriented Fund and the I&T Accelerator Pilot Scheme, will play a crucial role. These efforts have fostered the establishment of a more comprehensive I&T ecosystem that integrates enterprises, funding, technology, and talent networks, facilitating I&T as a key industry that will drive the sustainable economic growth of Hong Kong.

November 24, 2024