Hong Kong's Science and Technology Parks (HKSTP) and the Guangzhou city government have announced formal plans to co-operate on technology development, with emphasis on facilitating the flow of technology, capital and talent across the border. HKSTP chairman Victor Lo said the Guangzhou co-operation would begin with contact between HKSTP and similar organisations in Guangzhou's technology bureaucracy. These included software and science parks in Guangzhou as well as a high-technology park being developed in Nansha, a joint venture between SAR businessman Henry Fok Ying-tung and the Hong Kong University of Science and Technology. 'Broadly those [projects] will be included, but as to what specific projects we are now still discussing,' Mr Lo said. The announcement does not carry any financial commitments or deadlines but is an indication that officials view regional co-operation as an important aspect of high-technology development. Mr Lo said products developed at HKSTP in Hong Kong could be produced in the Guangzhou area while trained specialists could be encouraged to work for HKSTP tenants in Hong Kong. 'The science park first of all does not offer any space for mass production. We only offer space for mainly [research and development] and related commercial activities, and maybe limited space for pilot production. Soon these companies will have to go into mass production. 'So theoretically they can either go into the industrial estate or they can go into China, but I think chances are they will go into China because of cost and because of access to the China market.' Under the agreement, some technology firms in Guangzhou will be encouraged to move into HKSTP facilities in Hong Kong. 'I understand a lot of pharmaceutical companies, as they look at the global market, believe Hong Kong is not a bad place for them to set up a base as a window to export to the rest of the world,' Mr Lo said. Previous technology co-operation efforts between Hong Kong and the mainland include joint academic research and training programmes. The HKSTP was formed in May and 10 tenants have signed on to move into the first phase of Hong Kong's science park in Tai Po when it opens in April. 'We have more that will sign in the months to come,' Mr Lo said. Despite some confusion on the overlap between this project and Pacific Century CyberWorks' CyberPort development in Pokfulam, Mr Lo said HKSTP and CyberPort focused on different parts of the technology market. 'The strategies of the two projects are totally different because CyberPort is more targeted towards e-business, information technology-related businesses, software development, content development and IT-related services,' he said, 'whereas the Science Park is more attuned to companies developing products, critical components and technologies. 'We've clearly told the market our four key areas are IT more on the hardware side, electronics, precision engineering and biotech.'