Financial Secretary Paul Chan released the 2021 Budget on February 24. For those working in innovation and technology, was this Budget satisfactory? technine has summarized the plans related to the I&T industry. If you work in IT, these measures are worth understanding.
Innovation and Technology Infrastructure
Hong Kong’s support infrastructure for IT and innovation has not always been complete. Could this year’s Budget further support the industry?
The 2021 Budget noted that InnoCell was completed at the end of the previous year and would begin leasing and trial operation in the first half of the year. It provides around 500 flexible residential spaces with shared workspaces and other facilities to support researchers at Science Park.
Science Park and Cyberport would also expand. Science Park and Cyberport Phase 5 were expected to provide approximately 28,000 and 63,000 square metres of floor area respectively, mainly for R&D and I&T enterprises.
The Hong Kong-Shenzhen Innovation and Technology Park in the Lok Ma Chau Loop was expected to have its first batch of facilities completed in phases from 2024 to 2027. It was estimated to contribute HKD 500 million annually to Hong Kong’s economy and create around 4,800 jobs.
Digital Economy
In recent years, many companies have wanted to implement digital transformation. The pandemic accelerated the digital economy. What happened in the previous year, and what new plans were introduced?
The government would continue supporting enterprises and manufacturers through schemes such as the Public Sector Trial Scheme, Technology Voucher Programme, and Re-industrialisation Funding Scheme. These programmes help businesses commercialize R&D results, use technology services to improve productivity or business processes, and establish smart production lines in Hong Kong.
The Budget also injected HKD 1.5 billion into the BUD Fund, gradually expanding its geographical coverage and raising the cumulative funding ceiling for each enterprise. An additional HKD 1 billion was allocated to the Distance Business Programme.
Starting from 2021/22, the government would allocate funding over three years to the Hong Kong Trade Development Council to develop virtual platforms, strengthen online event capabilities, and support digitalization. To provide young people with more channels to promote design work, HKTDC would also study its B2C physical and online platforms to help young entrepreneurs promote original products and test consumer preferences.
HKSTP and Cyberport would inject capital into HKSTP Ventures and the Cyberport Macro Fund respectively, expanding coverage to Series B or later-stage financing. To promote R&D, funding would also be injected into the Innovation and Technology Fund to support its funding schemes and research laboratories over the following years.
Cultivating Innovation and Technology Talent
The number of R&D personnel and startup employees in Hong Kong has grown significantly. In response, the 2021 Budget included a series of plans to cultivate and attract talent.
The Global STEM Professorship Scheme would be launched to support universities in attracting internationally renowned I&T scholars and teams to Hong Kong for teaching and research. The scheme would involve funding from the government, universities, and The Hong Kong Jockey Club Charities Trust, supporting 100 places over five years.
The government also allocated funding to promote IT learning in primary schools, benefiting hundreds of aided primary schools over the next three school years.
The government had previously piloted subsidies for local university STEM students to join short-term I&T internships. With strong participation from students and companies, and many interns considering I&T careers after graduation, the programme would become regularized.
The government has long supported Hong Kong’s IT and innovation sector. If you work in IT or run a business, you should make good use of available resources and actively pursue digital transformation. Contact technine to explore the right direction for your business.
Translation supported by AI.