The bill on allowing enhanced tax deductions for research and development expenditure to qualified local institutions was duly passed in the Legislative Council last Wednesday. The approval was almost bipartisan, as this measure provides incentives for local companies to invest in innovation and technology. Chief Executive Carrie Lam Cheng Yuet-ngor has pledged to raise the share of R&D expenditure in our gross domestic product to 1.5 per cent in the next five years. However, much remains to be done.

Tax advantage is just one of the factors that can foster our innovation and technology industry. Another crucial factor is talent. Hong Kong ought to make full use of its renowned international status and appeal to talent from across the globe, as well as to companies, large or small, to set up their businesses, headquarters or regional offices here. We should proactively engage international companies, institutions and governments, and tell them of our determination to develop our innovation and technology sector.

The point is to promote Hong Kong to the rest of the world as a high-flyer in the innovation and technology industry in about 10 to 15 years’ time. Those abroad tend to see Hong Kong as excelling only in the financial industry, and not many have a clue about our determination to jockey for the position of a regional technology hub, on which we have the backing of the central government. Only if we are able to attract talent from around the world to come here and work, will we be able to prevail and be seen as a real innovation and technology hub.