*********************************************************

Following is the full text of the speech delivered by the Financial Secretary, Mr Donald Tsang, at the official launch of the Hong Kong Science Park today (Tuesday):

Victor (Lo), Ladies & Gentlemen,

I am delighted to be here to take part in the Official Launch of the Hong Kong Science Park. It is a milestone in further developing Hong Kong as a centre for innovation and technology.

In the mid 1950s, Einstein wrote : "The whole of science is nothing more than a refinement of everyday thinking." If we take that as the yardstick, then there is nothing we can't achieve in our march to a knowledge-based society.

Nevertheless, our ultimate success in tomorrow's highly competitive global economy will hinge on our ability to master the forces of innovation and technology. These are becoming the new drivers of economic growth.

We only have to look at the huge advances in related areas such as IT, telecommunications, biotechnology, new drugs and treatment, and new diagnostic devices to identify health problems, to know where the future lies.

And the government is committed to providing the necessary infrastructure to encourage the application of innovation and technology to every facet of our economy. This is the key to maintaining our competitiveness.

The setting up of the Science Park is a telling example of this commitment. With its first class facilities and supporting services, it will become a focal point for collaboration between local and overseas enterprises.

It makes much better economic sense and helps the commercialisation of research results by matching technological advances in laboratories with the right businesses.

The Science Park is the best vehicle to achieve this. It will act as an important catalyst in stimulating innovation and promoting the growth of technology- based industries in Hong Kong.

And, to ensure its success, we are putting in place other support programmes to benefit future tenants. This includes the $5 billion Innovation and Technology Fund to finance projects which contribute to the upgrading of Hong Kong's industries.

Since its launch earlier this month, we have received favourable feedback and many enquiries from prospective applicants.

We are also actively planning the establishment of the Applied Science and Technology Research Institute as a way of strengthening our mid-stream research capability. And to facilitate close co-operation with all parties, the Institute's permanent home will be established at the Science Park.

However, building infrastructure is not the only solution to promoting innovation and technology. Just as important, if not more so, is the need for human resources. In this respect, we are improving our education system to ensure we have the talent for meeting our future needs; and to attract expertise from around the world, particularly from the Mainland of our Nation.

With its community setting, the Science Park will have a vital role to play in creating a critical mass of these talent. Although all sectors - the government, industry, and academia - will have to co-operate if we are to turn Hong Kong into a centre for innovation and technology.

The Science Park management is now engaged in active dialogue with companies which have indicated interest in setting up operations in the Park. And in a few moments we will witness the signing ceremony of co-operation agreements between the Science Park and six universities.

As this close partnership takes root, a 'community of innovation and technology' will come to life. I am sure that the Science Park will be a development in which the whole of Hong Kong will take pride.

In closing, I would like to thank the Chairman and members of the Science Park Board for their hard work over the past months. They have devoted much of their time to putting together the management structure, attending to the detailed physical planning and design of the Park, as well as mapping out the marketing strategy. We are all indebted to them for their commitment and invaluable contribution.

Thank You.

End/Tuesday, November 23, 1999

NNNN