Laissez-faire no more: Hong Kong’s aggressive tech hub plans come not a moment too soon
- A mantra of ‘small government, big market’ has held Hong Kong back while its regional peers have made impressive strides in innovation
- But now an industrial policy is finally taking shape, with Beijing’s support and backed by a raft of measures and generous funds
As long-standing industrial policy agnostics, the Hong Kong authorities have never adopted an industrial policy, even though national industrial strategies have been practised by scores of Asian economies to jump-start their recovery after World War II.
In contrast, Hong Kong has for a long time remained locked in a simplistic “small government, big market”, “maximum support, minimum intervention” mantra.
Sheltered from geopolitical headwinds until Sino-US competition intensified in recent years, Hong Kong has lived in blissful ignorance about the need to adopt cutting-edge technologies to stay ahead of the competition, or to play a part in protecting its motherland from the attacks of a superpower afraid of losing its global dominance.
In the wake of the global financial crisis in 2008, then chief executive Donald Tsang Yam-kuen did make a half-hearted attempt in 2009 to implement new industrial policies. He named six industries where Hong Kong enjoyed clear advantages and called for their development, but there was no serious follow-up. The government soon gave up, after the economy bounced back quickly on the back of property market and tourism recovery.
The stars seem to have finally aligned. Moving in lockstep with national policies, the current chief executive has put building Hong Kong as an international innovation and technology hub as one of his priority missions. New policies are being set in place to “grab” talent and strategic enterprises.
The Innovation and Technology Bureau has been expanded to become the Innovation, Technology and Industry Bureau, with a view to targeting advanced manufacturing. Finally, a scientist with strong background in biomedical engineering research as well as tech entrepreneurship was appointed as the head of this enlarged bureau.
The leader of this bureau needs to be able to navigate the tech landscape of both mainland China and Hong Kong. Professor Sun Dong is well placed to spearhead Hong Kong’s new drive to move up the technology ladder.
Hong Kong gets China’s backing to join more national projects, pursue global talent
These are very modest goals compared to the yardsticks of the tech giants, but very ambitious by Hong Kong standards. A fully fledged industrial policy has finally been developed, and the baby steps forward should not be taken lightly.
Regina Ip Lau Suk-yee is convenor of the Executive Council, a lawmaker and chairwoman of the New People’s Party