Even though many people all over the world associate Hong Kong with finance, the truth is that Hong Kong excels in many more areas. 

Aside from having a rich cultural heritage and a high quality of life, the city is also an innovation hub, as was demonstrated by the Global Innovation Index 2023, recently published by the World Intellectual Property Organization, which also ranked the Shenzhen-Hong Kong-Guangzhou science and technology cluster second globally for four consecutive years. 

Hong Kong’s ranking remains fifth in Asia and 17th globally among 132 economies. Hong Kong continued to perform well in the “Innovation Input” subindex, at eighth globally. Its ranking in the “Innovation Output” subindex improved to 24th.

On the same day that the index was published, Sept 27, a spokesman for the Hong Kong Special Administrative Region government said, “The National 14th Five-Year Plan indicates clear support for Hong Kong’s development into an international innovation and technology (I&T) center. To chart Hong Kong in moving towards that vision, the HKSAR government promulgated the Hong Kong I&T Development Blueprint last year. ... Nearly HK$200 billion ($25.6 billion) has been committed in the past few years to enhancing technological research infrastructure, subsidizing research and development activities, supporting collaboration among industry, academic and research sectors, as well as pooling together and nurturing technology talent. Moreover, we proactively attract strategic enterprises to set foot in Hong Kong with a view to accelerating and boosting the vibrant development of our I&T ecology.”

Indeed, in late December, 2022, the HKSAR government promulgated the Hong Kong Innovation and Technology Development Blueprint to establish a clear development path and formulate systematic strategic planning for Hong Kong’s I&T development over the next five to 10 years, envisaging Hong Kong moving full steam ahead toward the vision of becoming an international I&T center. 

Hong Kong’s Chief Executive John Lee Ka-chiu, proposed in last year’s Policy Address to dovetail with the National 14th Five-Year Plan and develop Hong Kong into an international I&T center at full speed. 

The government formulated the blueprint from the perspective of top-level planning and design, and will promote it under four broad development directions, namely “to enhance the I&T ecosystem and promote ‘new industrialization’ in Hong Kong” ; “to enlarge the I&T talent pool to create strong impetus for growth”; “to promote digital economy development and develop Hong Kong into a smart city”; and “to proactively integrate into the overall development of the country and consolidate our role as a bridge connecting the Chinese mainland and the world”. This is indeed consistent with China’s 14th Five-Year Plan (2021-2025), which indicates clear support for Hong Kong’s development into an international I&T center. 

It is important that Hong Kong, as part of the Guangdong-Hong Kong-Macao Greater Bay Area (GBA), remains at the forefront of innovation, since the city is not only a finance hub, but also an innovation hub. 

As far as finance is concerned, there is no doubting Hong Kong’s leading role. For example, Hong Kong maintained fourth place in the Global Financial Centres Index 34 Report published on Sept 28 by Z/Yen from the UK and the China Development Institute from Shenzhen. 

The HKSAR government said Hong Kong’s overall rating increased notably, with the global rankings in the four areas of business environment, human capital, financial sector development, and reputational rising to fourth place, reflecting recognition of Hong Kong’s sustained strength and robustness as an international financial center in the post-COVID-19 era.

That said, while Hong Kong’s expertise in finance is universally admired, some tend to overlook Hong Kong’s efforts in the area of innovation, which are more than notable. 

Hong Kong is currently involved in many projects that will strengthen its status not only as one of the world’s most important financial centers, but also as an innovation hub, such as GBA development. 

Mentioning innovation in Hong Kong would be incomplete without mentioning Hong Kong’s involvement in the GBA. Right from the start, the GBA brought together the two SARs of Hong Kong and Macao with nine municipalities in Guangdong province into one economic cluster that is expected to be a leading growth engine for the nation.

The GBA has a combined population of over 86 million and a GDP of around $1.9 trillion (comparable to that of the Tokyo Bay Area and the New York Metropolitan Area). It has been called “China’s plan to beat Silicon Valley”, and not without reason. There are sufficient data pointing to this. Suffice to say that the Chinese government never skimps on expense when it comes to big projects that would bring prosperity to the country.

Thus it would be wise for Hong Kong to diversify its economy as much as possible. It must therefore seize every opportunity to do so. And the GBA is, without any doubt, entirely apposite for the many good opportunities it offers.

To sum up, projects like the GBA will allow Hong Kong not only to enhance its role as one of the world’s most important financial centers but also help Hong Kong keep excelling in other areas such as innovation, where Hong Kong ranks very high too. 

In the country’s 14th Five-Year Plan (2021-25), the central government has again recognized Hong Kong’s potential at the national level and has reaffirmed its commitment to supporting the HKSAR in strengthening its status as an international financial, trade and logistics hub. Hong Kong not only remains one of the world’s most important financial centers but also excels in many other areas.

The author is a fintech adviser, researcher, and former business analyst for a Hong Kong publicly listed company.

The views do not necessarily reflect those of China Daily.