Government support for business incubation reaffirmed

November 18, 1998

The Government has pledged to do more to strengthen the technology base of Hong Kong given the increasing competition the territory is facing in the knowledge-based world.

The pledge was made by the Secretary for Information Technology and Broadcasting, Mr K C Kwong, when addressing the International Conference on Business Incubation jointly organised by the Hong Kong Industrial Technology Centre Corporation, the International Association of Science Parks and the Pacific Economic Cooperation Council today (Wednesday).

Mr Kwong acknowledged that it was difficult for the private sector, particularly small and medium sized enterprises, to invest in research and development (R&D) which may not come to fruition until after a long gestation period.

"Thus, we accept that there is a role for Government in facilitating the development of advanced technologies, and in promoting their use by industry, business, and the community," he said.

To play this role of a facilitator and promoter, Mr Kwong continued, the Government is currently financing technology development projects and research undertaken by the industry and business sectors through various funding schemes.

These include the Industrial Support Fund which has up to now committed $1.2 billion to some 340 projects seeking to introduce new technologies, enhance infrastructural support for industry, or improve productivity in specific industries; and the $750 million Applied Research Fund which provides capital for technological ventures and R&D activities that have good commercial potential.

In addition, the Hong Kong Industrial Technology Centre Corporation, set up in 1992 to nurture newly set-up companies, also operates a business incubation programme. This programme provides technology-based start-up firms with low-cost accommodation as well as management, marketing, financial and technical assistance in the critical initial years.

Mr Kwong was pleased to note that since its establishment, the programme had been well received, with 21 companies having graduated from the programme so far.

To further assist the business and industry sectors to develop and exploit technology, Mr Kwong said the Government was embarking on a number of new initiatives. They are :

* to develop the Hong Kong Science Park to help position Hong Kong as a regional centre for innovation and R&D activities. The first phase of the Park, covering eight hectares at an estimated cost of $3.3 billion, is scheduled for completion by 2001;

* to establish an Applied Science and Technology Research Institute to conduct mid-stream R&D activities, with focuses on development and adaptation of generic and pro-competitive technologies for transfer to industry;

* to set up a $5 billion Innovation and Technology Fund to finance individual projects that contribute to innovation or technology upgrading in the manufacturing and service industries;

* to establish a second board in Hong Kong to enable smaller and emerging companies to raise capital to finance their business expansion and development; and

*to explore with the tertiary institutions ways and means through which they can more readily and effectively transform the fruits of their research into technologies for eventual application by industry.

As regards university-industry collaboration, Mr Kwong noted that the Industrial Technology Centre and the Hong Kong University of Science and Technology were operating a "distributed incubator centre" on the campus of the University.

He called on the local universities to do even more as he believed "they are in an ideal position to operate incubator schemes given the availability on campus of technical facilities, libraries and databases, as well as an environment which would encourage the cross-fertilisation of ideas between the incubatees and the academic staff".

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