The Chief Executive released his fourth Policy Address in September 2025. The report covers national security, governance efficiency, economic diversification, attracting enterprises and talent, land and housing supply, fertility support, youth development and healthcare improvements. This article extracts the key innovation and technology measures, including artificial intelligence (AI), data development, R&D funding and infrastructure.
AI Efficiency Enhancement Team
To coordinate and lead government departments in using AI effectively, redesign workflows and promote technology reform, the government will establish an AI Efficiency Enhancement Team. The team will be chaired by the Chief Secretary for Administration, with the Secretary for Innovation, Technology and Industry and the Digital Policy Commissioner serving as deputy chair and secretary-general. A private-sector representative will also be invited as another deputy chair. The team will prioritize departments with public-facing services and handle efficiency improvement applications, with operation expected within 2025.
AI and Data Science Industry Development
The government positions AI as a core industry, focusing on infrastructure, application-led development, risk management and cross-industry integration. The strategy includes strengthening infrastructure, promoting both “industry for AI” and “AI for industry”, and connecting research, capital, data advantages and wider applications. A concrete action plan is expected within 2025.
To strengthen AI research and talent development, AIR@InnoHK already brings together more than 1,000 experts, while nearly 1,000 AI companies operate in innovation and technology parks. The government will launch a HKD 3 billion Frontier Technology Research Support Scheme to attract top researchers and establish a HKD 1 billion Hong Kong AI Research and Development Institute in 2026.
The Hong Kong Investment Corporation will act as government-owned patient capital, investing in areas such as large language models, cloud computing and AI drug development. The government will also use Hong Kong’s financing channels to support AI industry growth.
Data Advantages and Wider AI Applications
Hong Kong will make use of the advantages of “one country, two systems” to build compliant and secure cross-border data flow mechanisms and data facility clusters. Plans include promoting data flow to the Hong Kong park for research, launching an AI subsidy scheme, and tendering a 10-hectare site in Sha Ling for data facilities, including Cyberport’s AI supercomputing centre.
The AI Efficiency Enhancement Team will lead government applications in data analytics, customer service and document processing. Examples include police reporting, traffic management, the iAM Smart assistant, caregiver support chatbots, digital pathology and clinical workflows. The Hong Kong Monetary Authority and Cyberport will launch an AI sandbox, the Development Bureau will provide construction AI subsidies, and the Department of Justice will review AI-related legislative needs.
Northern Metropolis, San Tin Technopole and Hetao Cooperation
The government will develop the 210-hectare San Tin Technopole as a strategic base for innovation and technology, with a concept outline covering planning, industry layout, land coordination and market resources. It will also connect with the Shenzhen section of the Hetao cooperation zone.
The Northern Metropolis will be accelerated through an innovation and technology industry park and a university town, creating jobs and improving productivity. A Northern Metropolis Development Committee will coordinate dedicated groups on development models, university town planning for 2026 to 2030 land supply, and overall planning, including industry-linked tenders, financing plans and legislation to simplify procedures.
The Hetao Shenzhen-Hong Kong Science and Technology Innovation Cooperation Zone will focus on life and health technology, microelectronics, new energy and AI. The first three buildings in the Hong Kong park have been completed, tenants are moving in, and the remaining first-phase land will be launched this year.
Education, Infrastructure and New Industrialisation
The government will promote Hong Kong’s higher education through a Study in Hong Kong task force, overseas and mainland recruitment funding, summer study tours and Hong Kong study tours from the 2026/27 academic year. Applied sciences universities will deepen cooperation with leading mainland and overseas enterprises, while primary and secondary schools will receive digital education support, including AI literacy, curriculum enhancement, teacher training and enterprise resources.
Hong Kong will continue developing as an international innovation and technology centre, focusing on three I&T parks, five R&D institutions, aerospace science, new industrialisation, low-altitude economy and people-oriented research. The Hong Kong Microelectronics Research and Development Institute will set up two pilot lines, while preparations for the life and health technology institute and Hong Kong AI R&D institute are expected to complete next year.
For new industrialisation, the third InnoHK research cluster will focus on sustainability, energy, advanced manufacturing and materials, with R&D centres expected in the first half of 2026. The New Industrialisation Acceleration Scheme threshold will be lowered from HKD 300 million to HKD 150 million, and an I&T industry-oriented fund will launch in 2026-27 to guide market capital into emerging and future industries.
People-Oriented Research and Low-Altitude Economy
The Innovation and Technology Fund will support people-oriented research, including a two-year plan to fully subsidize high-tech prosthetics for amputees. The government will also develop a competitive low-altitude economy ecosystem, positioning Hong Kong as an Asia-Pacific hub for innovative applications. The action plan includes amending civil aviation legislation to allow non-traditional aircraft above 150 kg, improving vertiport and smart traffic management infrastructure, designating spectrum and encouraging enterprise applications and pilot projects.
Translation supported by AI.