Hong Kong has a future as a great industrial power - so asserts a public-private sector study being carried out by the world famous Massachusetts Institute of Technology (MIT).
According to the MIT research team, the key to success is 'bundling manufacturing and services into service-enhanced products . . . in the new manufacturing industries of the 21st century'.
Although the study has not been completed, MIT's choice of manufacturing sectors for research indicates which are the areas it thinks are the new manufacturing industries of the future.
The top three are biotechnology, electronics and information technology (IT). MIT also looked at textile and clothing, a traditionally strong export sector.
In general, Hong Kong's strengths include flexibility of production, good production co-ordination, professional management, strong public institutions and established international contacts.
However, Hong Kong must pay attention to where it is weak. According to MIT, these weaknesses include a need for better training of human resources, greater development of new products and new processes, the upgrading of technological skills in both industry and the public sector, and also high costs.
For example, in electronics, apart from high costs Hong Kong's competitive disadvantage is the lack of technology and product innovation. MIT believes that Hong Kong has the capability to strengthen the industry by improving mass market end-products and components.