As Hong Kong pulls out all the stops to re-energise its place on the world’s business and cultural stage, just as it has done many times before, the Special Administrative Region (SAR) is poised to carve out a new niche as an innovation and technology (I&T) hub.
Citing Hong Kong’s role as an international I&T centre, as outlined during the 14th National People’s Congress held in Beijing in March, the Hong Kong government believes now is the time to accelerate its development plans.
Tech trigger
In a 78-page policy blueprint released this April, the government’s Innovation, Technology and Industry Bureau (ITIB) highlighted how the wider adoption of I&T could revitalise traditional industries, spawn new businesses, foster a diversified economy and create quality employment opportunities in the SAR. Other initiatives include funding universities and institutes to develop biotech and healthtech research centres.
Hong Kong has proposed pumping HK$9bn into I&T, including AI and quantum computing
Hong Kong’s move to position itself as an I&T hub has received support from the highest levels. During a recent meeting in Beijing between Hong Kong’s chief executive John Lee and mainland China’s science and technology minister Wang Zhigang, the minister pledged to support Hong Kong in joining more national-level I&T projects.
Speaking at the 2023 Digital Economy Summit, which took place in Hong Kong this April, Cao Shumin, deputy director at the Cyberspace Administration of China, said the SAR should proactively plan its development in advanced technologies including semiconductors, quantum computing, artificial intelligence (AI) and blockchain. Cao also suggested that Hong Kong should continue to integrate with the Greater Bay Area in tech innovation, promote the circulation and commercial use of data, and push for digital transformation in traditional industries.
Web3 drive
Mainland China officials also endorsed the SAR’s ambition to become a hub for Web3 – the next-generation internet based on decentralised technologies such as blockchain. Despite recent turmoil in the Web3 sector globally, the endorsement came just days after the launch of the Institute of Web3.0 Hong Kong. As an indication of the commitment to drive technology development, Hong Kong’s finance chief earmarked more than HK$10bn (US$1.2bn) in the 2023/24 Budget to support various tech initiatives, including HK$50m on boosting the Web3 sector.
Rarely a city that does things by halves, Hong Kong has rolled out a series of measures to develop the digital economy. HK$700m (US$89m) has already been committed and there is a proposal to pump HK$9bn into various I&T initiatives, including HK$3bn on exploring fields such as AI and quantum technology.
The aim is to more than double the number of I&T professionals in Hong Kong to 100,000 by 2032
Talent transformation
While the policy blueprint maps out a wish list, converting Hong Kong’s aspiration to become a major global I&T player into reality will require a concerted effort from government and the business, academic and research sectors. A further challenge – one faced by many other places – is the persistent shortage of tech talent. Without giving details, the ITIB blueprint set a goal of more than doubling the number of I&T professionals based in Hong Kong to at least 100,000 by 2032.
This is an ambitious goal, yet Hong Kong’s incredible knack for evolving and reinventing itself is also characteristic of its people. Encouraging locals to switch careers and bringing in talent from outside the SAR, may see Hong Kong boost its I&T workforce over the coming decade.
