Speech at Subcommittee on Matters Relating to the Promotion of New Industrialization

I. Industry development of new industrialization

Overall strategies for promoting new industrialization and industry developments

Members acknowledged the Administration’s efforts in promoting new industrialization as well as innovation and technology (“I&T”) development, and expressed the following views: given its higher costs of land and human resources, Hong Kong should leverage the complementary advantages between itself and the Mainland by integrating the parts and supply chains provided by the Mainland while focusing on the development of advanced smart production lines locally in order to promote the development of new industrialization more effectively.

The Administration advised that, it would proactively promote new industrialization by developing and introducing advanced manufacturing industries which were suitable for Hong Kong and less land- or labour- intensive through I&T, and promote the upgrading and transformation of traditional manufacturing industries through streamlining processes by technology, with a view to enhancing the competitiveness of Hong Kong’s manufacturing industries and creating quality job opportunities, as well as diversifying Hong Kong’s economic development.

Attracting enterprises

Member suggested that the Administration should announce at the appropriate time information about enterprises that had confirmed to Hong Kong to make a presence in Hong Kong, follow up with such enterprises on their operations in Hong Kong after they had established in Hong Kong and provide them with appropriate support.

The Administration advised that, recruitment was underway for the post of the Commissioner for Industry (Innovation and Technology) (“C for I(I&T)”), whose main duty was to steer the strategies on new industrialization, including working with government bureaux/departments on formulating appropriate facilitating measures to attract highpotential and representative strategic I&T enterprises or advanced manufacturers to set up/expand their businesses in Hong Kong.

Research and development

Expressing concern about the relationship between research and development (“R&D”) and building a comprehensive I&T ecosystem as well as developing advanced industries, members raised the following enquiries and views: efforts should be made to further foster the transformation of local universities’ original R&D outcomes into products or services for entry into the commercialization stage. Local universities could set up R&D bases in the Northern Metropolis to tie in with the development of the I&T industry there.

The Administration advised that, a $10-billion “Research, Academic and Industry Sectors Oneplus Scheme” would be set up to facilitate the formation of a platform for collaboration among the industry, academia and research sectors by provision of funding to encourage universities to transform original R&D outcomes in deep technology which had reached a certain “Technology Readiness Level” into products or services for entry into the commercialization stage. In order to provide greater incentive for university teams to commercialize R&D outcomes with transformation potential, it was recommended that university teams/inventors should be entitled to no less than 70% of the relevant intellectual property benefits.