Hong Kong Faces Hurdles in Becoming a Global I&T Hub Like Silicon Valley: Minister

Hong Kong has a long journey ahead to become a global innovation and technology hub comparable to Silicon Valley, according to Secretary for Innovation, Technology, and Industry Sun Dong, who emphasized the need for more private sector investment and focused government initiatives.

Hong Kong’s I&T Development Lags Behind Mainland China, Needs More Private Sector Investment

According to Secretary for Innovation, Technology, and Industry Sun Dong, Hong Kong still needs to make significant progress before it can be considered a global innovation and technology (I&T) hub on par with Silicon Valley. On September 1, Sun emphasized that while the government has made strides in developing the I&T sector, more effort is needed to translate these initiatives into tangible productivity and economic growth.

Sun acknowledged that Hong Kong faces a challenging path ahead, stressing the importance of encouraging private sector investment to fuel industry development. He noted that although the Hong Kong government has invested over HK$200 billion (US$25.6 billion) in I&T development in recent years—amounting to over 1 percent of the city’s GDP in 2022—this figure remains far below the approximately 2.7 percent spent by mainland China and the up to 5 percent recorded in the towns like Shenzhen, Beijing, and Shanghai.

Focused Development and International Collaboration Key to Hong Kong's I&T Growth, Says Sun

Sun highlighted the need to leverage market forces and attract more companies to invest in research and development, creating a “virtuous cycle” where increased demand for technology drives further investment and industry growth. Given government resources and available land limitations, Sun outlined a focused approach where specific I&T fields would be developed within designated technology parks.

According to SCMP, Cyberport in the Southern district will concentrate on digital technology, the Science and Technology Park at Pak Shek Kok will focus on research and development, and the proposed San Tin Technopole near the mainland border will serve as a base for the industry.

Sun also discussed the Hetao Shenzhen-Hong Kong Science and Technology Innovation Cooperation Zone, a project proposed by Beijing in 2017. The zone spans both sides of the Shenzhen River, with Hong Kong contributing 87 hectares and Shenzhen 302 hectares, and is envisioned as a world-class platform for the I&T industry. The Hong Kong side aims to attract international I&T resources and serve as a new trial base for national policies. Sun promised that more details on the scheme would be revealed by the end of the year, with the first three buildings in the Hong Kong section expected to be completed by 2025.