Hong Kong Attracts 900 Tech Companies as Innovation Hub Efforts Pay Off

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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.

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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.

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Frequently Asked Questions (FAQs) Related to the Above News

How many tech companies have established themselves in Hong Kong this year?

About 900 technology firms have chosen to establish a foothold in Hong Kong this year.

What are the main reasons behind these tech companies choosing Hong Kong?

Tech companies are attracted to Hong Kong due to its top-quality local universities and reputation for world-leading research in science and technology. Additionally, Hong Kong provides potential access to markets in Southeast Asia and the rest of the world.

How has the Hong Kong government encouraged the establishment of tech companies?

The Hong Kong government has actively encouraged the establishment of tech companies through initiatives like the Office for Attracting Strategic Enterprises (OASES), which connects companies in healthtech, artificial intelligence, and big data with opportunities in Hong Kong.

How many companies have established a local presence through the OASES initiative, and what investments and job opportunities have they brought?

So far, 30 companies have established a local presence through the OASES 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.

What challenges do tech companies face in setting up operations in Hong Kong?

One of the challenges is the complex and time-consuming process of opening new offices or transferring research and operations. Additionally, the lack of a regulatory body similar to the US Food and Drug Administration has been noted, making it difficult to certify new products before they enter the market.

What is the concern regarding talent shortage in Hong Kong?

Tech companies, such as SinoSynergy International, have faced difficulties in finding R&D talent after setting up operations in Hong Kong, highlighting the talent shortage in the city.

What suggestions have been made to address the talent shortage and attract more investment?

Suggestions include offering targeted funding schemes, promoting awareness of specific technologies like hydrogen, effectively matching individuals brought in through talent drives with suitable job positions, and ramping up overseas promotion to attract more investment to the city.

What steps does Hong Kong need to take to solidify its position as a leading destination for tech companies?

Hong Kong needs to address regulatory challenges, talent shortages, and funding gaps to further solidify its position as a leading destination for tech companies.

Please note that the FAQs provided on this page are based on the news article published. While we strive to provide accurate and up-to-date information, it is always recommended to consult relevant authorities or professionals before making any decisions or taking action based on the FAQs or the news article.

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