Throw off the shackles to make Qianhai economic zone truly innovative
The law governing the commercial zone in Shenzhen is a hodgepodge of vague goals and wishes – but it could be so much more
Qianhai. Is it a glorified real estate project? Or a revolutionary new approach to replicating Silicon Valley? It depends on what the Hong Kong government does soon.
Replicating Hong Kong’s own innovation programmes will handicap the project from the start.
The Hong Kong Science and Technology Parks Corporation Ordinance imposes no need to make profits. The ordinance does though give the financial secretary complete power over the corporation – to approve investment plans and force it to do his or her bidding.
At the time of our study, exactly 97 per cent of its revenue came from property related transactions (rental fees, land premia and property management fees). Roughly half of its expenses went to administering and marketing the parks, rather than funding innovation. No wonder people look at Qianhai as just another property deal.
Qianhai’s own regulations seem to mirror Hong Kong’s policies, which focus on abstract results rather than profits. The Innovation and Technology Commission has reported 100 per cent success in hitting its 13 objectives – all of which focus on getting papers out the door on time.