HK risks IP hub status as output efficiency lags South Korea

It remains a global leader in funding research but struggles to convert that capital into marketable patents and goods.

Hong Kong needs to improve its performance in innovation outputs if it wants to become a regional hub for the intellectual property (IP) industry.

“Although the HKSAR ranked amongst the top 10 globally for innovation inputs in the Global Innovation Index (GII) 2024, its performance in innovation outputs—measured by indicators such as patent filings and creative goods exports—was significantly lower, at 31st place,” HKU Business School said in its Hong Kong Economic Policy Green Paper 2026.

This contrasts sharply with South Korea, which ranks 4th in outputs and 6th in inputs. This reflects a highly efficient system for transforming research and development investments into tangible, marketable IP.

Hong Kong’s IP industry plays a vital role in the economy. IP-intensive industries accounted for an average of 32.7% of Hong Kong’s gross domestic product and 29.1% of total employment between 2019 and 2021, the Intellectual Property Department (IPD) said in a December 2023 report.

IP filings have also remained robust, with trademark applications totalling 35,240 in 2021, dipping to 29,432 in 2022, and rebounding to 33,149 in 2024, with over 496,000 trademarks currently in force. Short-term patent applications increased from 552 in 2021 to 813 in 2024, indicating strong interest in rapid protection for innovations.

Design filings also grew, with 2,228 applications covering 4,582 designs in 2024, up from 1,882 applications in 2021.

“The HKSAR has a distinct advantage in becoming a regional centre for IP trading, particularly due to its favourable legal and regulatory environment, strong innovation inputs, and ability to attract global talent,” the report read.

HKU said the challenges for Chinese companies that seek to trade IP internationally present opportunities for Hong Kong to serve as a two-way, full-service IP corridor between Mainland China and the global market.

Amongst others, Hong Kong can bridge this gap through its IP-trading infrastructure, including Patent Cooperation Treaty international patent filings, overseas trademark registrations IP due diligence, tax-efficient financing, insurance and re-insurance. This helps businesses mitigate international IP risks, and boost their global competitiveness, the report said.