Within a few years the Hong Kong Special Administrative Region (SAR) could become the centre of innovation and technology in the region.

It could also be a world-class design and fashion centre, a regional centre for multi-media based information and entertainment services, a world centre for the development of health food and pharmaceuticals based on Chinese medicine; a leading supplier of value added components and products, a regional supply centre for professional and technological talents and services; and the marketplace for technology transfer between China and the rest of the world.

This was the vision outlined by Professor Chang-Lin Tien today (Friday) when he presented the first report of the Chief Executive's Commission on Innovation and Technology. Professor Tien, the former Chancellor of the University of California at Berkeley, was appointed Chairman of the Commission when it was set up in March this year.

Professor Tien advised that to achieve this goal, the SAR Government must invest at least C$1 billion in fostering innovation and technology and setting up an Applied Science and Technology Institute.

The report says Hong Kong faces a number of major challenges. There is strong competition from neighbouring countries for Hong Kong's regional roles in trade, finance, transportation and communications.

"With respect to manufacturing, Hong Kong must strive to retain, support and further develop high value-added activities. Hong Kong is also facing stiff competition from other low-cost economies in the low-end product category.

"A fundamental challenge is how Hong Kong should position itself in the knowledge-based global economy of the 21st Century."

Professor Tien adds that the vision of making Hong Kong a centre of innovation and technology is a timely response to these challenges.

Mr. Donald Tong, the Director of the Economic and Trade Office of the SAR Government in Canada, welcomed the report and said that the Chief Executive, Mr. Tung Chee Hwa, in his policy address on Wednesday, has agreed to Professor Tien's proposal.

"In addition, Mr. Tung announced the establishment of an Applied Science and Technology Research Institute to stimulate mid-stream research between basic scientific research and its commercial application," Mr. Tong said.

"We realise that innovation and technology are important drivers of economic growth. In a knowledge-based global economy, they are essential in adding value, increasing productivity and enhancing our overall competitiveness.

"In order to build a critical mass of fine scientists, engineers and skilled technicians in Hong Kong, we will consider measures which will enable employers to recruit the best professionals from the Mainland and elsewhere in the world."

For further information please contact Chief Information Officer, Frank Chuan at telephone no. (416) 924-5544.