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The Second and Final Report of the Chief Executive's Commission on Innovation and Technology was released to the public today (Monday).
Speaking at a press conference, Commission chairman Professor Chang-Lin Tien said that he was delighted by the change from skepticism to general acceptance in public attitude towards innovation and technology in the past year.
Professor Tien said that Hong Kong had the capability to become a knowledge-driven and technology-intensive economy. He was optimistic that Hong Kong should be able to achieve noticeable results in three to five years and reap substantial benefits in a decade.
"Technology is advancing and changing so rapidly that Hong Kong is not really behind its regional competitors. More important, Hong Kong must leverage on its areas of strength and develop its own niches," Professor Tien said.
"Hong Kong should not promote high tech for the sake of high tech. Instead, it should encourage firms in all economic sectors to innovate, by introducing improved technology and methods, by penetrating new market segments, and by entering into activities of higher value," Professor Tien added.
The Commission's Second and Final Report contains recommendations on the following issues -
* Institutional arrangement.
* Building up human capital.
* Fostering an innovation and technology culture.
* Creating an enabling business environment.
Regarding institutional arrangement, the report recommends the establishment of a policy group headed by the Financial Secretary and comprising relevant bureau secretaries to set and co-ordinate policies. In addition, the Government should set up a standing advisory body reporting to the Chief Executive to succeed the Commission on Innovation and Technology. Some full-time science advisers should be appointed to support the proposed new setup.
As for non-government public institutions, the report recommends that the Hong Kong Science Park, Hong Kong Industrial Estates Corporation and the Hong Kong Industrial Technology Centre Corporation be merged, and the division of responsibility among various institutions involved in service delivery be sharpened.
For building up human capital, the report recommends the following measures -
* continue to invest heavily in education, paying special attention to creativity, communication skills and information technology;
* vigorously promote a culture of lifelong learning among the workforce, and inspire interest in science and technology among young people;
* offer more multi-disciplinary programmes blending business, science and engineering in universities;
* step up overseas liaison and promotion efforts targeting especially at Chinese talents and technology entrepreneurs by the Government; and
* admit Mainland talents to work in Hong Kong quota-free.
On fostering an innovation and technology culture, the report recommends the following -
* expand Government's incubator programme through a distributed model;
* introduce a $500 million funding scheme to assist small entrepreneurs undertaking commercial R&D work at the pre-market launch stage;
* earmark $250 million in the Innovation and Technology Fund for matching grants to private enterprises collaborating with universities in R&D;
* develop action agendas for promoting innovation and technology in individual industries or industry clusters; and
* attract multinational companies to use Hong Kong as a regional hub for application or service support and development, and generally as a base for R&D catering for the Asian market.
On creating an enabling business environment, the report urges the banking sector to pay more attention to the financing needs of small firms and the technology sector particularly. The report stresses that Hong Kong must maintain its business-friendly environment, be vigilant in promoting competition, and continue to combat infringements of intellectual property rights. The report recommends the Government to explore the feasibility of setting up a co-investment scheme providing government venture capital on a matching basis with private funds.
Professor Tien stressed that a holistic and coherent approach should be adopted to take forward the Commission's recommendations, backed by clear and sustained commitment at all levels of the Government. He also pointed out that the Innovation and Technology Fund and Applied Science and Technology Research Institute recommended in the Commission's First Report would play a pivotal role in advancing the cause.
"Continued provision of adequate resources is also essential. However, while the Government may be involved more heavily at first to jump-start the process of change, in the longer term industry should be responsible for the lion's share of the resources needed,"Professor Tien said.
The report is now available for distribution to the public free of charge at the Trade and Industry Bureau, Industry Department, District Offices of the Home Affairs Department and Hong Kong Productivity Council. It can also be browsed through the Commission's website at http://www.info.gov.hk/cit/.
The Commission's First Report was released in October 1998. The publication of the Second and Final Report today marked the completion of the Commission's task.
End/Monday, July 5, 1999
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