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Chris Chapel

IN 1991, the Hong Kong Government took an important step towards establishing the territory as a force in the development of high technology products and services.

  It set up the Hong Kong Industrial Technology Centre Corporation (HKITC), which officially opens today.

  It is a statutory body designed to provide infrastructure for private sector technology projects.

    The Government's aim was to further stimulate technology development against a background of increasing competition from the region and Europe.

  Director General of Industry, Denise Yue said: 'The HKITC is seen very much as another piece adding to our existing technological infrastructure.'    Other major elements of the Government's technology strategy include the $200-million Applied Research & Development Scheme, the $150-200 million per year Industrial Support Fund and the $105-million New Technology Training Scheme run under the Vocational Training Council.

   Technology infrastructure is also provided by the Hong Kong Industrial Estates properties and several other initiatives are nearing the introductory phase.

    At the central educational level, regular reviews are made to ensure that course content and intake match industrial demands.

   The Government, well known for its non-interventionist approach to business, has a self-help attitude to technological development.

   'The last thing we want to do is try to pick winners [among young technology companies],' Miss Yue said.

  In all the programmes, including the HKITC, the private sector will need to come up with the concepts and designs. And the Government will provide support.

   Not everything tagged 'hi-tech' will qualify for the services offered by the HKITC.

   The organisation's chief executive, James Liu, said: 'We take a pragmatic view of technology. Hi-tech is a very wide term. To us, it means anything that can help industry to upgrade. It must be relevant to Hong Kong, with a direct and immediate impact.'    Early targets of the HKITC, are companies involved in electronics and microelectronics, telecommunications and multimedia.

   It focuses on developing the marketing, enabling strategy, application and multimedia within each target sector.

  The HKITC's tools are its programmes: an incubation programme which gives young technology companies rent discounts and administrative support; a technology transfer scheme which markets proven technology products and a research and development plan aimed at expediting the passage to market of technological products and services.

    The HKITC's business incubation programme provides rent subsidies of up to 75 per cent to Hong Kong companies engaged in development of high technology.

     Initially housed in the Hong Kong Productivity Council (HKPC) building in Kowloon Tong, the HKITC today officially opens its own headquarters in Tat Chee Avenue, adjacent to the HKPC.

  The Government has designed the HKITC to be self-financing.

  It was set up as the Provisional HKITC in 1991 with a land grant of 5,700 square metres, a $250 million start-up grant and a $188 million loan.

  Income will be generated from rents on five floors of Grade A office space at the HKITC, interest on the unused portion of its grant, revenue from incubating companies and consultancy fees related to technology transfers.

    The HKITC is operating in the black, according to Mr Liu.

     Office space is 70 per cent leased and has attracted such tenants as Silicon Graphics and Centro Digital.

   Its core operations - administrative offices and incubation programmes - are on the first floor of the state-of-the-art building.

  The provisional HKITC, set up in 1991, became a statutory body in 1993.

  Under its ordinance, the HKITC has a big mandate. Its task is to run its centre to 'facilitate the promotion of technological innovation and development and the application of new technologies in industry in Hong Kong'.

  The ordinance requires the HKITC to 'conduct its business according to prudent commercial principles' but, within that constraint, it is also authorised to carry on any work deemed 'necessary or expedient' towards running the HKITC.



Supporting industries to upgrade