Hong Kong should learn from Israel's success in developing its high-end technology industry, Chief Executive Leung Chun-ying said after his visit to the country last week. In an article published in several Chinese-language newspapers yesterday, Leung said the city should in particular study how to establish a production chain better linking research and development to manufacturing. "How to convert technological research into products or services, and give researchers monetary rewards apart from mental rewards, is the key," he wrote. The chief executive paid a five-day visit to Israel and Britain last week. He said Israel shared common ground with the city, such as a similar population size and a small local market. He said the country was able to produce highly competitive technology-related products. Leung suggested Hong Kong could work with mainland China in this regard. City Beat: Hong Kong leader CY Leung's visit to Israel is a reminder of the importance of innovation "Much of the research and development in hi-tech products, and even their production, is suitable to be done in Hong Kong. Or, research and development could take place in Hong Kong while the mainland could deal with production," he wrote. Leung, accompanied by university and business leaders, visited universities and research organisations in Israel. He said he hoped to invite Israeli experts to visit Hong Kong for an exchange so the city could learn from their success. Following his trip to Israel, the chief executive visited the transport project Crossrail in London, managed by the MTR Corporation, and the London Metal Exchange, owned by Hong Kong Exchanges and Clearing. He said the prominence of the two enterprises in Britain illustrated the city's global stature. Charles Mok, legislator for the information technology sector, agreed that Israel was a country Hong Kong could learn from. Mok said Israel had a solid reservoir of local research talent that was capable of attracting international technology giants, such as Intel, Apple and Google, to set up research arms in the country. He said this was in part due to the country's defence industry. For Hong Kong to develop its hi-tech industry, Mok said the city had to think of ways to attract technology firms of a similar size to set up locally. Mok said though the city had no defence industry it could offer incentives to attract foreign investment in its technology research, such as "offering tax rebates for input on research and development, as well as relaxing restrictions for venture capital to enter Hong Kong". He said the mainland was well-suited for mass production but Hong Kong remained an ideal location for manufacturing high-end products, especially those with customised designs produced in small quantities. Mok said some were looking to move production back to the city due to quality control here and concerns over intellectual property rights on the mainland.