Hong Kong is currently formulating its first Five-Year Plan to align with the National 15th Five-Year Plan. Innovation and technology (I&T) is not only a major driver of the country’s development of new quality productive forces, but also essential to Hong Kong’s economic transformation and international competitiveness. Hong Kong should fully leverage the institutional advantages of “One Country, Two Systems” by integrating its strengths in university research, international finance, professional services and global business networks with the industrial supply chains, manufacturing capabilities and extensive market of Shenzhen and the Guangdong–Hong Kong–Macao Greater Bay Area. In doing so, Hong Kong can integrate more proactively into—and contribute more effectively to—the country’s overall development.
Over the past two decades, Hong Kong has recorded increases in both research and development (R&D) expenditure and the number of research personnel, while the academic and fundamental research capabilities of its universities have also improved significantly. Nevertheless, Hong Kong’s R&D expenditure as a share of GDP remains lower than that of many leading innovation economies, with particularly inadequate investment from the private sector. Although Hong Kong ranks highly in “innovation inputs” under the Global Innovation Index, its performance in “innovation outputs” is relatively weak. This suggests that its existing institutional, financial, talent and research strengths have yet to be fully translated into technological achievements, commercial applications and business-led innovation. While the number of start-ups in Hong Kong has continued to grow, many still face constraints arising from the limited size of the local market, difficulties in scaling up and challenges in retaining talent over the long term.
Hong Kong’s future I&T positioning should not focus solely on increasing government funding or replicating the Mainland’s model of industrial development. Instead, it should concentrate on the functions in which Hong Kong is most competitive. The Five-Year Plan should support Hong Kong in becoming the preferred service platform and international business headquarters for Mainland technology enterprises seeking to “go global”, enabling them to use Hong Kong’s financial markets, legal system, intellectual property protection and international networks to expand overseas. At the same time, the HKSAR Government should develop a deeper understanding of the regulatory and institutional barriers faced by Mainland technology enterprises when establishing operations, raising capital and conducting international business in Hong Kong. It should also strengthen coordination with the relevant Mainland ministries and authorities, thereby enabling Hong Kong to serve as a genuine gateway connecting the country’s technology industries with global markets.
(Translation supported by AI)
《Submission on Industrial and Technological Development for Hong Kong’s Five-Year Plan》(Chinese only)
