Building a complete innovation and technology ecosystem and developing a pool of I&T talents are key to promoting new industrialization in Hong Kong, said Sun Dong, secretary for Innovation, Technology and Industry.

Hong Kong needs to create a complete I&T ecological chain in upstream, midstream and downstream in order to build a vibrant I&T ecosystem and give full play to the benefits that I&T brings to society, he said at a Legislative Council meeting on Monday.

“Upstream research and development achievements should be transformed and commercialized in the midstream, promoting industrial development in the downstream. Industrial development will, in turn, generate demand for R&D and provide resources to support upstream R&D, forming a virtuous cycle,” he added.

Sun’s remarks came as Hong Kong is doubling down on the development of new industrialization as a way to upgrade its traditional industry and drive I&T growth.

The Hong Kong Special Administrative Region government also needs to help traditional manufacturing industry make intelligent transformation through innovative technologies, said Secretary for Innovation, Technology and Industry Sun Dong

In last year’s Policy Address, Chief Executive John Lee Ka-chiu announced the establishment of a HK$10 billion ($1.2 billion) New Industrialization Acceleration Scheme, in order to support enterprises in the fields of life and health technologies, artificial intelligence and data science, advanced manufacturing and new energy technologies, each capped at HK$200 million.

Sun highlighted the importance of formulating industrial policies that fit Hong Kong’s long-term development needs and supporting emerging industries with competitive edges and strategic significance.

The Hong Kong Special Administrative Region government also needs to help traditional manufacturing industry make intelligent transformation through innovative technologies, he added.

The I&T chief also noted that sufficient high-quality I&T talents are key to promoting new industrialization in Hong Kong.

“We have been adopting a multi-pronged approach to strengthen the local pool of I&T talents through various channels, including the introduction of the Research Talent Hub for ITF projects, which subsidizes eligible enterprises to employ up to four research talents for a total period of no more than 12 years,” he said.

Sun said that by employing multiple programs to enrich research talents, Hong Kong aims to attract 50 to 100 firms to set up new production facilities in the city starting from 2024 to 2025, with a direct investment of not less than HK$20 billion.