NAMI fails to meet key performance targets over five-year period

It has an average shortfall of 17 projects.

The Nano and Advanced Materials Institute (NAMI) has consistently failed to meet performance targets set for research and development projects over the past five years, according to a review conducted by the Audit Commission.

Between 2019-2020 and 2023-2024, the institute fell short of its targets for commencing and completing Innovation and Technology Fund (ITF)-funded projects, missing completion targets every year with an average annual shortfall of 17 projects. Additionally, delays plagued many projects, with 74% of those completed in 2023-2024 missing their deadlines by an average of 7.7 months.

The audit also highlighted shortcomings in NAMI’s evaluation processes, revealing that nearly half of the post-project evaluation reports due in 2023-2024 had not been submitted on time, averaging 226 days overdue.

For one project, there was no evidence that NAMI followed up on results that indicated no operational benefits. Furthermore, performance targets for industry contributions were unmet in four out of five years, whilst the level of income generated from contract research projects and industry partnerships showed a declining trend, falling short of NAMI’s own targets in two years.

The review also noted inconsistencies in performance data. Discrepancies were identified between figures reported to the Legislative Council and those recorded in NAMI’s own documents, raising concerns about clarity and transparency in reporting.

Laboratory safety inspections were found to be inadequately conducted, with one report pre-filled before inspections began and several procedures left unchecked.

Meanwhile, the audit also examined 294 patent applications filed by NAMI between 2019-2020 and 2023-24 and found that 38% were discontinued whilst pending patents increased significantly during the period. Nearly 70% of platform and seed projects completed in the same timeframe failed to generate licensing fee income, and no guidelines existed to establish rationale for setting licensing fees.

The report concluded that NAMI needs to address these operational inefficiencies and improve its project management and accountability mechanisms to align with its mandate to promote applied research and commercialisation in Hong Kong.