How Hong Kong can stand out in the innovation economy
Published: 11:30am, 5 Feb 2025 Feel strongly about these letters, or any other aspects of the news? Share your views by emailing us your Letter to the Editor at [email protected] or filling in this Google form . Submissions should not exceed 400 words, and must include your full name and address, plus a phone number for verification Hong Kong's commitment to becoming an innovation hub is evident in the government's 2022 Innovation and Technology Development Blueprint, increasing investment in research and development and STEM (science, technology, engineering and mathematics) education, and initiatives like the Talent Engage Office and Office for Attracting Strategic Enterprises. However, several critical elements require attention to realise this vision effectively.
First, we need greater focus. Hong Kong cannot excel in every sector simultaneously. We must strategically allocate resources based on our core strengths, developing targeted approaches for cash cows like financial services while nurturing emerging opportunities in education, healthcare and Chinese medicine. We should develop an innovation blueprint for each strategic industry, taking into account the emerging but indispensable role of artificial intelligence.
The current policy overemphasises product and technological innovation. There can also be innovation in business models, customer experiences, delivery processes and stakeholder relationships. Management innovation – which is arguably the most important but often overlooked – is essential to building a culture of innovation among Hong Kong organisations. This will require leadership commitment, customer-centricity, employee empowerment, an appetite for experimentation and risk-taking, a diverse workforce and a learning culture. Innovation is about mixing and matching. Hong Kong's traditional role as an international marketplace positions the city uniquely to adapt global innovations for the emerging economies of Asia and the Middle East, and to take Chinese innovations to the world. The success story of DeepSeek shows that we do not have to be the first in the market. Instead, we could learn from global best practices and be 'an innovator of innovations'.
The current supply-driven approach needs rebalancing with market demand. Both government and businesses should be incentivised to adopt innovations, with the public sector leading by example. While numerous innovation awards exist, we lack recognition for innovation adoption – a crucial driver of market uptake.
Public-private partnerships are crucial for commercialisation but require clear guidelines and transparent processes to build trust. Both sectors need capacity building to collaborate effectively.
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