Kung fu film animation will be a key area in which universities and small enterprises will be funded as part of Hong Kong's plan to develop innovative industries. The government said yesterday it would grant up to $2 million to support individual projects on digital entertainment, as well as projects to tackle air pollution on the streets and indoors. It is calling for funding requests in the fields of digital animation, video and online games, and other multimedia delivery services. Anthony Wong Sei-kei, Commissioner for Innovation and Technology, said martial arts animation was one of the key areas open to grants. The Innovation and Technology Commission (ITC) has a war chest of $5 billion to fund proposals that it identifies as core research areas to develop into home-grown technology. It can provide 50 per cent funding to an enterprise to a maximum of $2 million under its Innovation and Technology Support Programme. 'What we push for is private investment,' said Mr Wong. 'If we gave $5 billion, the private sector would invest a few billions, and we could create more value.' Submissions for funding should be made before October 31. Since its establishment in 1997, the commission has granted $1.2 billion for 418 research projects. However, only five projects so far have managed to pay dividends, according to Mr Wong. It regularly updates the fields to which it will assign funds. Mr Wong, who assumed his post after leaving the Office of the Telecommunications Authority, said the commission would continue to broaden the scope of its search for new technologies. Mr Wong said he had met senior officials of the China Academy of Science last week and both sides had agreed to increase co-operation in the area of technology. More detailed projects would be announced early next year, he said.