Hong Kong urged to ramp up research spending to 4 per cent of GDP to keep pace with rivals
Current level of 0.73 per cent compares with 3 per cent in Taiwan and over 4 per cent in South Korea
Hong Kong needs to step up investment in research and development (R&D) to the equivalent of 4 per cent of its gross domestic product to stay ahead of punishing competition in the region, a pro-government think tank says.
Our Hong Kong Foundation, which was launched by former chief executive Tung Chee-hwa, said the level of such investment in the city last year was 0.73 per cent of GDP – “significantly lagging behind” its regional peers and mainland neighbours.
Professor Lawrence Lau Juen-yee of the Chinese University of Hong Kong, the leading writer of a report on the city’s positioning in future development, said at a forum on Thursday that the recommendation would put the city on a par with Shenzhen, which invested an annual 4 per cent.
“Hong Kong should set a goal, over the years, to achieve 4 per cent of GDP in R&D [expenditure],” Lau said. “This will be comparable to Israel, Taiwan and South Korea.”
Singapore spends 2 per cent of GDP on research, Taiwan 3 per cent and South Korea more than 4 per cent. Beijing invested 6 per cent on R&D last year.
Shenzhen topped Hong Kong for a second time this year as the most competitive city in China, according to the Chinese Academy of Social Sciences, a state-backed think tank.