By leveraging its strong portfolio of Intellectual Property (IP) know-how, Hong Kong is well positioned to contribute significantly to the ever-changing IP landscape, and join forces with neighboring partners, officials and industry stakeholders heard at the 14th Business of IP Asia Forum on Thursday.
“We live in a world where knowledge drives economic success, and our ability to leverage knowledge effectively is more crucial than ever,” Peter Lam Kin-ngok, chairman of the Hong Kong Trade Development Council (HKTDC), said in his welcome remarks.
On average over the period of 2019-2021, IP-intensive industries contributed HK$877.9 billion ($112.8 billion), or approximately 33 percent to Hong Kong’s economic output, and created 1,090,000 jobs, amounting to 29.1 percent of total employment in the city, according to a study conducted by Hong Kong’s Intellectual Property Department in December 2023.
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The figures demonstrate that “it is in our interests to protect IP rights”, Lam said.
At the heart of the city’s efforts to become a prominent regional IP trader, an entrenched status highlighted in the nation’s 14th Five-Year Plan (2021-25), lie two “key pillars” — enhancing IP infrastructure and building an IP-savvy workforce, Hong Kong’s Chief Secretary for Administration Eric Chan Kwok-ki said in his opening remarks.
Integration and collaboration are the name of the game. Hu Wenhui, deputy commissioner of China National Intellectual Property Administration (CNIPA), said in his opening remarks that “CNIPA will continue to throw its weight behind Hong Kong’s long-cherished role as a superconnector, harnessing its finest minds and impeccable strengths for the emergence of a globally competitive innovation cluster in the Guangdong-Hong Kong-Macao Greater Bay Area to essentially foster great synergy.”
In the Global Innovation Index 2024 published by the World Intellectual Property Organization in August, the Shenzhen-Hong Kong-Guangzhou science and technology cluster ranked second globally for the fifth consecutive year, and Hong Kong remained fifth in Asia and 18th globally among 133 economies.
“Worldwide, digital communication and computer technology is where Hong Kong leads the pack in patent technology. The city also boasts the leading edge in fields such as consumer goods, electrical machinery, artificial intelligence, furniture, and biopharmaceuticals,” said Li Yahong, associate professor at the faculty of law of the University of Hong Kong, told a panel discussion.
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Hong Kong’s advantages also fit in well with a noticeable trend worldwide, where digital communication and biotechnology were among the top 10 most patent-active fields of technology, posting the strongest growth of 8.6 percent and 5.9 percent, respectively, according to Patent Index 2023 published by European Patent Office, said Wang Binying, deputy director general of World Intellectual Property Organization.
Riding high on the undertakings and technological edge, the financial hub bets on “engaging with the world, particularly the Association of Southeast Asian Nations (ASEAN) neighbors and countries along the Belt and Road, in sharing best practices and staying at the forefront of IP trends,” Chan said.
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Echoing the city’s bigger role on the Asian and global stage, Xaysomphet Norasingh, chairman of ASEAN Working Group on Intellectual Property Cooperation, highlights “an essential moment in ASEAN’s journey towards a prosperous and sustainable future, driven by innovation, creativity, and also entrepreneurship”.
Calling IP “a powerful engine for economic and social progress, enabling countries to transform innovation ideas into tangible, impactful outcomes”, Xaysomphet said ASEAN, with its burgeoning digital economy and tremendous progress in innovation, is well geared up to carve out a name for itself.
On this journey, he stressed the “need to go beyond IP protection and move forward IP utilization”.
Xaysomphet said ASEAN remains at the middle stage of the value chain — the manufacturing and production stage which is known for its lower value creation. He highlighted the priority areas where the bloc has vowed to shift towards the final stage of brand and service with higher value added.
This includes utilization and promotion of intangible assets, access to the next wave of innovation, notably disruptive AI, and the sustainable growth and development of IP, he said.
During the forum, Chan announced a plan to establish a World Intellectual Property Organization Technology and Innovation Support Center in the city, adding flesh to Hong Kong’s aspirations to become a regional center for IP trading.
The new center is expected to commence operation by next year at the earliest, dedicated to “making it easy for local entrepreneurs and businesses to go from product concept to market launch, offering expert guidance, support and resources”, Chan said.
The move follows the latest initiative — a “patent box” tax incentive, which reduced tax rates on qualifying IP profits from 16.5 percent to 5 percent, and was up and running in July to bolster the city’s vision of encouraging more research and development and IP trading, Chan said.
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Permanent Secretary for Commerce and Economic Development Maggie Wong Siu-chu said the Hong Kong Special Administrative Region government looks to double down on IP education, reaching out to 200,000 students during this term of government, up from previous goal of 100,000.
Under the theme of “Reimagining IP for Impact and Growth”, the annual two-day forum, jointly organized by the HKSAR government and HKTDC, is an integral part of the city’s Innovation and IP Week.
This year, the gathering attracted over 160 global IP owners, users, experts, industry leaders, venture capitalists to share insights, and more than 400 startups and innovative projects to showcase their products and technologies.
Wu Menglei (thor_wu@chinadailyhk.com) contributed to the story
Contact the writer at sophialuo@chinadailyhk.com
