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The following is the speech by the Chief Executive, Mr Tung Chee Hwa, at the Opening Ceremony of the Symposium on Commercialisation of Innovation and Technology today (October 16):
Director Jiang, Dr Raymond Ho, distinguished guests, ladies and gentlemen,
I am honoured to have been asked to open this Symposium on Commercialisation of Innovation and Technology that has been jointly organised by the Hong Kong Academy of Engineering Sciences and the Chinese Academy of Engineering.
I have always believed that innovation and technology are important economic drivers. But in this knowledge-based era, innovation and technology are not just important components, they are vital components, in any economy's long-term development. Innovation and technology are the principal means to improve efficiency and productivity, add value and enhance our competitiveness.
That is why, shortly after I became the Chief Executive in 1997, I established a Commission for Innovation and Technology to provide a greater focus for all of our efforts in these areas.
Under the chairmanship of an esteemed academic, Professor C L Tien from UC Berkeley, the Commission, provided us with a valuable blueprint on how best to position Hong Kong as a hub for innovation and technology in the Asia-Pacific Region.
But, perhaps just as importantly, the Commission helped to positively reinforce the enormous impact that innovation and technology will play in Hong Kong's future. It heightened the need for a clear view of the way forward in these two areas and how we could foster innovation, and apply technological advances, to consolidate our position as the World City of Asia.
To continue the momentum of the Commission's work, in April this year I appointed a Council of Advisors on Innovation and Technology. The 16-member Council includes leading experts in a range of fields covering finance, economics, electronic engineering, telecommunications and biomedical engineering. The Council will recommend ways on how to optimize the contributions of innovation and technology to Hong Kong's economic development.
Since the Commission's final report was handed to me in June last year much has been done, and continues to be done, to realise our vision to become a centre for innovative and technological excellence in the Asia-Pacific. Let me give you a snapshot of what has been happening in the past 18 months.
We have established a HK$5 billion Innovation and Technology Fund to support projects that contribute to innovation and technology upgrading in our local industry, as well as the upgrading of local industry. Since the fund was established in November last year, HK$220 million (US$28 million) has been granted to 95 projects.
Complementing this is an Applied Research Fund of HK$750 million to support local technology ventures with commercial potential. This government-owned venture capital fund has already invested HK$270 million in 15 technology companies.
Work is well in hand for an Applied Science and Technology Research Institute to be based at a purpose-built Science Park at Tai Po, about a 20-minute drive from here. The ASTRI will provide mid-stream research & development capability to develop products, services and processes that will add value to, and boost the productivity of, our industries.
We have established an Institute of Chinese Medicine, to help realise the commercial potential of traditional medicines, an area which I believe holds great promise. We are also doing more to promote collaboration and co-operation between our universities and industry, as well as boost links between Hong Kong and Mainland educational and research institutions and facilities.
Some of you may have heard about our Cyberport project, which is taking shape on the western shores of Hong Kong Island. This joint venture between the government and the private sector will create a centre of high-tech talent where creativity will be enhanced by the 'cluster effect' of various IT disciplines working in close proximity.
In November last year, the Hong Kong Stock Exchange launched a Growth Enterprise Market - we call it the GEM - which provides emerging growth companies with access to funds from the public and institutional investors. In less than a year this NASDAQ-style board has seen the listing of 47 companies, mostly IT or technology-related firms. The Hong Kong exchange also became the first stock market in the Asian time zone to offer 'live' trading of seven NASDAQ stocks.
I am pleased that these initiatives are producing very positive results. First, we have seen a welcoming change of attitude in Hong Kong. The Society as a whole is embracing innovation and technology. There is now a general recognition that innovation and technology are not only the main driving force of the economy, but they are also helping to break down the social barriers. In the old days, one had to rely on capital and physical assets to start a business. Today, in the knowledge economy, what you need are ideas and concepts. With a good education, a sharp mind and some wonderful ideas, one can succeed irrespective of social background. A great benefit of innovation and technology to society is it levels the playing field and gives everyone a fair chance.
Another welcoming sign is innovation and technology fit in well with Hong Kong's competitive and entrepreneurial spirit. Over the last year or so, we have seen the mushrooming of IT start-ups in Hong Kong. Some have been doing very successfully and are featuring prominently internationally. They have demonstrated that Hong Kong has not only the potential and strength but also the real capability to commercialise innovation and technology and bring it to the world market.
In the commercialisation of innovation and technology, "synergy" is the key word. "Synergy" means not only the combination of different technologies to add value, it also means the combination of business strengths and advantages and building partnerships to make ourselves more competitive. In the new economy, the world is one single marketplace. We must seek to combine our strengths and share our expertise in order to succeed in the global market.
It is in this commercialisation of innovation and technology that I see great potential for synergy between Hong Kong and the Mainland. In Hong Kong we have a superb infrastructure including our telecommunication networks, our airport, our port and our close contact with the rest of the world. Our entrenched position as a leading business hub in Asia is one of our other great strengths. We have low taxes; a small, efficient and clean government; a respected and easily understood legal system; a level playing field where the market - not the government - picks the winners. We have complete freedom of movement of capital, goods and services. Investments are protected by law, as are intellectual property rights. This, together with ability to raise capital and our wealth of knowledge about the world market, provides the sort of environment needed for innovation and technology to flourish.
The Mainland, in turn, has a huge pool of talents. It has many world class universities and research institutes which provide fertile ground for new ideas and concepts to germinate. It has a hardworking and efficient workforce. The great manufacturing capability of the Pearl River Delta is right next across Hong Kong's boundary which can turn any great ideas and invention into mass production consumer products.
The principle of "One country, Two systems" helps to maintain our respective strengths and advantages, and provides a solid basis for Hong Kong to build synergy with the Mainland to open up the unbounded opportunities brought by innovation and technology. The Mainland can provide ideas and concepts, human resources, research support and manufacturing capacity; Hong Kong can offer equity capital, product development, marketing knowledge and business connections. To realise this synergy, we must provide efficient communication between Hong Kong and the mainland. This includes both physical communication and human contact.
On the physical communication, we are seeking to expand our air, sea and road links with all parts of the Mainland. Also, the Airport Authority and the Hong Kong Port and Maritime Board are joining hands to develop Hong Kong into a logistic hub for Southern China and Asia. All this will help to keep goods manufactured in the Pearl River Delta to move faster through our efficient port and airport, and efficiency means lower cost and more competitive.
But more important is the movement of people, and in this case, talents. To turn innovation and technology into commercial products we need to promote and facilitate the free flow of ideas and people. Since December last year, we have launched an "Admission of Talents Scheme" to facilitate Hong Kong companies to bring in talents from the Mainland. We understand that the scheme is not producing the sort of result we wanted it to produce. We are currently reviewing the operation of the scheme. We want to make it work and better meet the needs of Hong Kong companies, and we welcome your views. Hong Kong has one of the world's most transparent, approachable, and business friendly governments, and we will continue to remain so. Our policy is to act as a facilitator. We will seek to provide the best soft and hard infrastructure to make Hong Kong a centre of innovation and technology. And we will always be listening to you.
I would therefore like to take this opportunity to congratulate Dr Ho , Nicky Chan and his committee for organising the symposium at this most opportune time. I wish you all a very productive discussion and I look forward to your ideas and suggestions.
Thank you very much.
End/Monday, October 16, 2000
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Photo: The Chief Executive, Mr Tung Chee Hwa, officiated at the opening ceremony of the Symposium on Commercialisation of Innovation & Technology (.COM IT 2000) organised by the Hong Kong Academy of Engineering Sciences and the Chinese Academy of Engineering at the Furama Hotel. Picture shows Mr Tung addressing participants to the event.
