Hong Kong’s budget funding for innovation is a smart start

Will the HK$50 billion investment in innovation and technology, along with other initiatives in the budget, contribute to building the desired culture of innovation in Hong Kong? In addition, what more should the government be doing in its role as facilitator and promoter of Hong Kong?

Asking these questions is a good start towards moving Hong Kong forward along a necessary path in the city’s development. Any budget is always a balancing act for the government between investing in the future of Hong Kong’s people, giving a helping hand to those in need and also providing relief to the taxpayers who provide the money.

In short, will this help Hong Kong become a smart city? In defining what a smart city is, it is important to realise that technology alone is not what makes a city smart and that the government, while having a central role, cannot do all the heavy lifting.

In a recent KPMG survey, titled “Connecting Hong Kong – Perspectives on our future as a smart city” Hong Kong was identified as having several key strengths: a high-quality transport system, a well-regarded health care system, and its existing role as Asia’s leading financial services centre.

One key area identified as requiring further work was building a much stronger technology and innovation culture. That is, a culture that encourages entrepreneurship and new ways of thinking to create the conditions under which government and established companies, as well as start-ups, are willing to invest and take sensible risks with new ideas.

Fundamental to this is nurturing Hong Kong’s greatest asset – the city’s people – through a relentless focus on the education system to ensure that future generations are equipped with creative thinking and the technical skills needed to foster a culture of innovation.