An undated file photo shows a general view of Hong Kong Science Park, in Hong Kong. (PHOTO / VCG)

The Hong Kong Special Administrative Region government unveiled an ambitious road map for the city’s evolution into an international innovation and technology (I&T) center, with a dozen measures presented in the Policy Address that include establishing the New Industrialization Development Office and increasing cooperation with the mainland.

Embracing an industry-oriented approach, the New Industrialization Development Office under the Innovation, Technology and Industry Bureau will introduce initiatives to facilitate the growth of strategic enterprises in Hong Kong, assist the manufacturing sector in upgrading and transformation through the utilization of I&T, and providing support for startups.

Hong Kong Chief Executive John Lee Ka-chiu’s second Policy Address also makes the cooperation with mainland cities of the Guangdong-Hong Kong-Macao Greater Bay Area a top priority to drive the development of innovation and technology in Hong Kong

The government is also poised to provide financial assistance for enterprises in key industries, including life and health technologies, AI and data science, and advanced manufacturing, with the introduction of the HK$10 billion ($1.28 billion) New Industrialization Acceleration Scheme.

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Under this initiative, qualified enterprises that establish new production facilities in Hong Kong with an investment of at least HK$200 million will be eligible for funding support on a matching basis of HK$1 from the government for every HK$2 provided by the company, with a government funding cap of HK$200 million.

Inspired by the proposed establishment of the New Industrialization Development Office, Sunny Tan, chairman of the Hong Kong Productivity Council, said, “The HKPC will continue to collaborate closely with the industry in advanced technology, talent training and funding, in a bid to drive industrial upgrading and transformation, while cultivating an atmosphere conducive to the development of innovation and technology, and the commercialization and application of research outcomes.”

The HKPC is ready to make the most of the unique advantages that Hong Kong enjoys under the “one country, two systems” principle to attract advanced-technology and overseas investment, while guiding local enterprises to expand their presence globally, further enhancing the innovation and technology ecosystem in Hong Kong, Tan added.

Accounting firm CPA Australia said that the series of “comprehensive and concrete” measures outlined in the Policy Address indicates “a clear goal and a well-defined action plan for the government in building Hong Kong as an international hub for innovation and technology”.

In addition, Hong Kong Chief Executive John Lee Ka-chiu’s second Policy Address also makes the cooperation with mainland cities of the Guangdong-Hong Kong-Macao Greater Bay Area a top priority to drive the development of innovation and technology in Hong Kong.

While hosting a news conference on the Policy Address on Wednesday afternoon, Lee said the most direct path for Hong Kong to integrate into the Greater Bay Area is to promote Hong Kong’s development of “eight centers” outlined in the nation’s 14th Five-Year Plan (2021-25), which include the position as an international I&T center.

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“Hong Kong not only serves as a contributor in the Greater Bay Area, but also a beneficiary of its development,” Lee added.

According to the Policy Address 2023, the government is collaborating with Guangdong province to streamline the compliance arrangements for the flow of personal data from the mainland to Hong Kong, which is expected to facilitate the provision of cross-boundary financial and medical services within the Greater Bay Area.

This move follows the June signing of a memorandum of understanding between Hong Kong and Guangdong that aims to foster secure cross-boundary flow of mainland data in the Greater Bay Area.

Contact the writer at irisli@chinadailyhk.com