Hong Kong needs cultural change if it’s to catch up with regional tech peers, start-up survey finds

The technology ecosystem in Hong Kong is in dire need of cultural change to catch up with regional peers as the city’s early-stage start-ups still struggle with limited access to private capital and talent, according to the results of a survey released on Monday.

Hong Kong ranks last in availability of private funding, talent and pilot testing among 10 regional peers including Singapore, Beijing, Shenzhen and Tokyo, while it ranks in ninth spot overall, according to the Hong Kong start-up Index, which measures the favourability of Asian business environments.

“Culture plays a crucial role in the development of the tech ecosystem, and businesses in Hong Kong, and the general public still need to be educated about their understanding of how technology will be able to add value to their industries and the society as a whole,” Raymond Mak, founder and executive director of local entrepreneur community Entrelink, which initiated the survey, said in an interview.

When the city’s investors bet on property and the brightest minds go into banking as they have done for the past few decades, the start-up ecosystem in Hong Kong will continue to struggle unless there is a change in mentality, he added. The survey, carried out by Entrelink and the University of Hong Kong, polled 233 local start-ups, with most respondents in the early stage of their business.

Hong Kong has set a goal to become a regional hub for innovation and technology as it strives to diversify an economy heavily reliant on finance and property. The city will set aside HK$28 billion (US$3.6 billion) for research and development in universities and re-industrialisation for innovation and technology, Chief Executive Carrie Lam Cheng Yuet-ngor announced in September.