LCQ3: Promoting development of innovation and technology enterprises
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Question:
In the country's Report on the Work of the Government this year, the Central Government for the first time highlights the need to support the development of gazelle enterprises. Gazelle enterprises refer to high-growth small and medium-sized scientific and technological enterprises characterized by strong innovation capabilities, new fields of expertise and great development potential. It is learnt that a number of Mainland provinces and municipalities have introduced preferential measures such as incentive subsidies and interest-free loans to accelerate the development of gazelle enterprises. In particular, Hangzhou implemented support policies for eligible gazelle enterprises as early as 2020, encouraging them to collaborate with higher education institutions and scientific research institutes on research and development. This, complemented by other innovation and technology (I&T) support, has fostered a robust innovation ecosystem in Hangzhou, thereby nurturing a number of I&T enterprises, among which the six companies collectively known as Hangzhou's "Six Little Dragons" are particularly outstanding. In this connection, will the Government inform this Council:
(1) whether it will set a definition for gazelle enterprises in Hong Kong and compile statistics on the number of gazelle enterprises in the territory;
(2) whether it has studied the provision of targeted policy support for gazelle enterprises; if so, of the details; if not, whether it will conduct a study; and
(3) as it has been reported that Hangzhou's "Six Little Dragons" are interested in strengthening cooperation with Hong Kong, and the Chief Executive has also indicated that assistance will be provided to them, whether the Government will take the initiative to liaise with and invite such enterprises to establish a presence in Hong Kong, so as to inject new momentum into the I&T ecosystem?
Reply:
President,
Thank you Professor the Hon Wong Kam-fai for the question. My consolidated reply is as follows.
The National "Government Work Report" of this year strongly supports the development of innovation and technology (I&T) enterprises of all development stages, comprehensively planning to accelerate the growth of emerging and future industries. To proactively align with the national development strategy and to promote technological and industrial innovation, the Hong Kong Special Administrative Region Government has been adopting a multi-pronged strategy under the overarching framework of the Hong Kong I&T Development Blueprint over the past two years. On one hand, we are striving to nurture local I&T start-ups; on the other hand, we are actively attracting enterprises to set up businesses in Hong Kong. This fully leverages our unique advantages under the "one country, two systems" principle, that is, enjoying strong support from the Motherland and being closely connected to the world, with a view to seizing the historic opportunity of this new round of technological innovation and industry transformation.
On nurturing Hong Kong's I&T start-ups, the Innovation, Technology and Industry Bureau (ITIB) has provided a full range of support services to start-ups through the two Hong Kong I&T flagships, namely the Hong Kong Science and Technology Parks Corporation (HKSTPC) and Cyberport. The HKSTPC has been committed to providing support for entrepreneurial technology talent through various incubation programmes, including the provision of research and development (R&D) space and supporting facilities, funding, technical and management assistance, investor matching, mentorship support, promotion and business development support. Meanwhile, Cyberport has provided different financial and professional support through various public mission-driven incubation, accelerator, and support programmes tailored to the different development stages of start-ups. Also, with the imminent opening of the Hong Kong Park in the Loop within this year, the HSITPL (i.e. the Hong Kong-Shenzhen Innovation and Technology Parks Limited) will also launch an incubation programme to provide funding support and comprehensive support services to start-up teams and enterprises in the Park that have development potential and are engaged in life and health technologies. The number of start‑ups in Hong Kong surged from around 1 000 in 2014 to around 4 700 in 2024, reflecting the increasingly vibrant I&T ecosystem in Hong Kong. Our policy objective is to nurture I&T start-ups with independent R&D capabilities which can make substantive contributions to the economy and society, with a view to fostering the high-quality development of Hong Kong's economy.
We also recognise the importance of and the long-term need for supporting the development of start-ups as well as the necessity to keep abreast of the times in our policy initiatives. In recent years, the ITIB and the Innovation and Technology Commission have introduced and implemented a number of policies to enhance support for start-ups at various development stages, including the nurturing of start-ups. For example, the $10 billion Research, Academic and Industry Sectors One-plus Scheme was launched in 2023, which aims to fund, on a matching basis, research teams from universities with good potential to become successful start-ups to transform and commercialise their R&D outcomes. To attract more venture capital to co-invest in local I&T start-ups, we launched the Innovation and Technology Venture Fund enhanced scheme in end-2024 by redeploying up to $1.5 billion to set up funds jointly with the market, on a matching basis, to invest in start-ups of strategic industries, thereby empowering start-ups with more financing support.
Furthermore, we are preparing for the launch of the Pilot I&T Accelerator Scheme, which aims to attract professional start-up service providers with proven track records in and beyond Hong Kong to set up accelerator bases in Hong Kong to foster the robust growth of start-ups and enhance the I&T ecosystem.
Apart from nurturing Hong Kong's I&T start-ups, we have also taken the initiative to assist Mainland enterprises to "go global" and attract overseas resources, and strive to play the roles of "super connector" and "super value-adder", thereby bringing new opportunities and opening up new horizons for Hong Kong's I&T development. As at April 2025, in collaboration with other government departments, the ITIB has negotiated with more than 200 high-potential or representative enterprises to set up or expand their businesses in Hong Kong. During his recent visit to Zhejiang, the Chief Executive invited I&T enterprises such as "Hangzhou's Six Little Dragons" to set up businesses in Hong Kong, encouraging them to make use of Hong Kong's strengths to actively expand their business overseas. The ITIB is following up on these co-operation opportunities with a view to bringing them to fruition as soon as possible. We believe that the establishment of more I&T enterprises in Hong Kong will further promote the vibrant development of Hong Kong's I&T ecosystem, bring new impetus to the local I&T ecosystem, and further enhance the development of related industries.
We will continue to strengthen our I&T ecosystem in the following ways: first, continue to optimise our existing policies to enhance our support for I&T start-ups; second, facilitate more I&T enterprises in strategic industries to set up their businesses in Hong Kong; and third, engage with enterprises through various channels to understand their needs timely, dynamically adjust relevant policies and roll out new initiatives so as to ensure that our support measures align with industry needs to accelerate Hong Kong's I&T development.
Thank you.
Ends/Wednesday, May 7, 2025
Issued at HKT 13:24
Issued at HKT 13:24
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