2024 Policy Address: Gov't advances I&T sector through upgrades

Preparations are underway for a third InnoHK research cluster.

Hong Kong is advancing its transformation into an international innovation and technology (I&T) hub by upgrading traditional industries and fostering emerging ones, according to Chief Executive John Lee's Policy Address. 

Initiatives include establishing the Hong Kong New Industrialisation Development Alliance to enhance collaboration between the government, industry, academia, and research sectors. This will support I&T cooperation and create financing opportunities for newly-listed companies and local universities.

Preparations are also underway for a third InnoHK research cluster, focused on advanced manufacturing, materials, energy, and sustainable development. The two existing clusters already employ about 2,500 research and development professionals from Hong Kong and worldwide.

The government will increase investment in I&T through a $10b industry-oriented fund to channel market capital into key sectors such as life and health technology, AI and robotics, semiconductors, advanced materials, and new energy. In addition, $1.5b will be redeployed from the Innovation and Technology Venture Fund to support start-ups in strategic industries, whilst the Hong Kong Investment Corporation will work to attract I&T enterprises to set up operations in the region.

A new $180m I&T Accelerator Pilot Scheme will offer institutions government funding on a one-to-two matching basis, capped at $30m, to help professional startup service providers set up in Hong Kong and support startup growth.

To boost the low-altitude airspace economy, a working group led by the Deputy Financial Secretary will develop strategies and explore cross-boundary air routes and customs arrangements with Mainland authorities. Hong Kong is also studying ways to streamline licensing for Low Earth Orbit satellites and plans to join the Chang’E-8 lunar mission.

In new energy, around $750mfrom the New Energy Transport Fund will be allocated to help the taxi industry and franchised bus companies purchase electric vehicles, and the government will launch a subsidy scheme for trials of hydrogen fuel cell heavy vehicles. 

Hong Kong also aims to set targets for sustainable aviation fuel consumption, develop supply chains for green fuels, and support solar-to-hydrogen demonstration projects. A bill will be introduced next year to regulate the safe use of hydrogen fuel.