Hong Kong Sees Growth as Innovation Hub with 900 New Tech Companies
Hong Kong has become an attractive destination for tech companies, with about 900 technology firms choosing to establish a foothold in the city this year. This development comes as Hong Kong aims to transform itself into a leading innovation hub. Business leaders are now urging the authorities to introduce policies that will further support the growth of their respective fields.
According to the government, the Hong Kong Science Park in Pak Shek Kok has welcomed 400 companies in the past 12 months. This represents an 18% increase compared to the previous year, with 20% of the businesses coming from mainland China or overseas. Cyberport in Pok Fu Lam has also seen a rise, with 489 companies deciding to establish themselves there, a 7% increase from the previous year.
One of the companies that recently set up its operations in the Hong Kong Science Park is Simcere, a Chinese pharmaceutical company. Zhou Gaobo, Simcere’s chief investment officer, cited the top-quality local universities and Hong Kong’s reputation for world-leading research in science and technology as the main reasons behind their decision. He believes that these factors will enable the company to quickly scale up its clinical research and commercialization efforts. Zhou also highlighted Hong Kong’s potential as a stepping stone for expanding into markets in Southeast Asia and the rest of the world.
The Hong Kong government has been actively encouraging the establishment of strategic enterprises in the city. The Office for Attracting Strategic Enterprises (OASES) has been instrumental in connecting companies in healthtech, artificial intelligence, and big data with opportunities in Hong Kong. So far, 30 companies have established a local presence through this initiative, pledging to invest approximately HK$30 billion (US$3.8 billion) and create around 10,000 jobs, primarily in scientific research and managerial positions.
Despite the positive developments, challenges remain. Lawmaker Duncan Chiu emphasized the remarkable increase in companies setting up shop in Hong Kong, especially given the global economic downturn and the struggles faced by startups to raise funds. He stressed that opening new offices or transferring research and operations is a complex and time-consuming process. Additionally, Simcere’s Zhou noted that Hong Kong lacks a regulatory body similar to the US Food and Drug Administration, which can certify new products before they enter the market. However, there are discussions about establishing a drug regulatory agency in Hong Kong to expedite the approval process for leading drugs.
The talent shortage is another concern. SinoSynergy International, a hydrogen fuel cell company from mainland China, also faced difficulties in finding R&D talent after setting up operations in Hong Kong. The company’s CEO, Cynthia Zhu Zheyu, called on the local authorities to offer targeted funding schemes and promote awareness of hydrogen technology. She believes that dedicated funding for hydrogen projects can enable local industries to try out this new technology and showcase its economic and environmental benefits.
Lawmaker Johnny Ng Kit-chong emphasized the importance of effectively matching individuals brought in through talent drives with suitable job positions. He also suggested that the government should ramp up overseas promotion to attract more investment to the city.
Hong Kong’s growth as an innovation hub reflects its efforts to attract technology companies and foster a conducive environment for research and development. As the city continues to prioritize innovation, it will need to address regulatory challenges, talent shortages, and funding gaps. By doing so, Hong Kong can further solidify its position as a leading destination for tech companies and drive economic growth in the technology and innovation sectors.
