Research and Development

Since Hong Kong's main source of economic wealth is services, its main asset is the talent and expertise of its inhabitants. The government therefore is keen to develop the capabilities of its people, through upskilling and consolidating the city's position as a knowledge-driven economy. In fact, the government offers a few grants and favourable financing terms for certain R&D activities that meet specific criteria.

From the very top, where a council of advisors report directly to the Chief Executive on matters relating to innovation and technology Hong Kong is proactively creating and managing talent and innovation.

Key Centres for R&D Activities

The Hong Kong Government has supported the creation of several facilities catering to the needs of R&D enterprises. The most significant of these are:

• Hong Kong Applied Science and Technology Research Institute Company Limited (ASTRI)

• Hong Kong Science and Technology Parks Corporation (HKSTP)

• Cyberport

• R&D Centres

Furthermore, Hong Kong has 11 degree-awarding higher education institutions. Eight are publicly funded and offer over 14,000 first-year first degree places. Degrees up to doctorate level are offered, with many being widely recognised by institutions of higher learning around the world. Many universities encompass a research centre, that work with commercial bodies across a wide range of specialisms, as well as receive funding from the government.

Government Assistance

In keeping with the level playing field approach of the Hong Kong government, overseas investors who own Hong Kong incorporated companies are treated like their local counterparts and are eligible to apply for a few grants (and loans) that are available when specific criteria are met. Many of these grants are in the technology sector.

The key support programs are:

DesignSmart Initiative

Set up to strengthen support for the design and innovation industries there are four elements:

1. Design-business collaboration scheme - aims to promote collaboration between design and SMEs

2. Design-research scheme - aims to support worthwhile research in design or branding-related areas.

3. General Support Scheme- aims to promote and honour design excellence in

4. Professional Continuing Education Scheme - aims to develop professional continuing education courses in design and its application

Small Entrepreneur Research Assistance Program

Aims to help technology-based, entrepreneur-driven companies carry out business research at the pre-venture capital stage.

Patent Application Grant

All applications for functional patents and inventions (except cosmetic designs) are eligible for this grant.

Teaching Company Scheme

Aims to foster university-industry partnership through subsidising the cost of graduate students engaged from local universities to undertake proprietary R&D work.

New Technology Training Scheme

Intended to provide financial assistance to companies in Hong Kong wishing to have their staff trained, locally or overseas, in a new technology that would be useful to their business.

Hong Kong - Guangdong joint R&D fund

In keeping with the general trend in Hong Kong and the Mainland forging stronger economic ties, another fund was established that is jointly funded by the Hong Kong Government and the government of Guangdong Province (the area in mainland China just over the border from Hong Kong ).

The fund will provide support to universities, research institutions and private enterprises to conduct applied R&D in six technology areas: radio frequency identification (RFID) technologies; automotive parts and accessory systems; electronic and information technology; new materials and fine chemical processing; critical precision manufacturing equipment; and new energy and energy-saving related technologies.