HK invests US$18 billion to promote innovation and technology

The Hong Kong government is also setting up a US$2billion Innovation and Technology Venture Fund

By Anuradha Shukla
March 9, 2017

Credit: GraphicStock

The Hong Kong government is striving to work with industry stakeholders to enhance the city's I&T ecosystem since the establishment of the Innovation and Technology (I&T) Bureau in November 2015.

To this end, the government has taken various measures and invested a total of US$18 billion to promote I&T development, Financial secretary Paul Chan Mo-po said in the 2017-2018 Hong Kong Budget Speech on 22 February 2017.

I&T will drive Hong Kong's re-industrialisation, and facilitate the development of a high-end manufacturing industry conducive for Hong Kong. This in turn will promote economic growth and creating quality jobs.

The Hong Kong Science and Technology Parks Corporation (HKSTPC) has received a funding of US$8.2 billion to build an Advanced Manufacturing Centre and a Data Technology Hub in Tseung Kwan O Industrial Estate. 

The Hong Kong Productivity Council (HKPC) has also received support to establish an Inno Space to turn innovative and technological ideas into industrial designs or products.

New committee on I&T development
The city can expect a new committee on I&T development and re-industrialisation to co-ordinate the I&T development and re-industrialisation of Hong Kong.

Looking forward, the tax policy unit will also explore enhanced tax deductions for I&T expenditure.

The Hong Kong government is setting up a US$2 billion Innovation and Technology Venture Fund (ITVF) to encourage private investment in local I&T start-ups. 

The ITVF intends to co-invest in local I&T start-ups with venture capital funds on a matching basis of about one to two, in order to inject new capital and energy into technology start-ups in Hong Kong.

Local start-ups can also expect support for their further development, so that more young people can realise their aspiration for entrepreneurship.