PReCIT Launches Inaugural PolyU Innovation & Technology Index
The Policy Research Centre for Innovation and Technology (PReCIT) of The Hong Kong Polytechnic University (PolyU) today released its inaugural PolyU Innovation & Technology Index (the Index). With the aim of formulating impactful I&T development policy recommendations to the HKSAR Government in view of enhancing Hong Kong’s competitiveness and its integration into national development under the 14th Five-Year Plan, the Index compares Hong Kong’s I&T strengths and challenges with those of various regions in Greater China and four major bay areas.
1) Comparison of Hong Kong with other Regions in Greater China
Guangdong, Jiangsu and Beijing rank as the top three regions for I&T among the 34 regions in Greater China, with an I&T Index score of 6.77, 5.20 and 4.72 respectively.
Hong Kong ranks 7th with an I&T Index score of 3.53. The city’s ranking is attributable to lower scores in R&D, the number of patents, I&T practitioners, and start-ups, and the contribution to GDP from the city’s manufacturing industry. Despite Hong Kong’s Gross Domestic Expenditure on R&D (GERD) as a ratio to GDP having risen from 0.74% in 2016 to 0.99% in 2022, the figure is still below the Greater China average of 2.4%.
However, Hong Kong outstrips other Greater China regions in the aspects of average venture capital deal size and high-technology exports, highlighting the city’s edge as an international financial centre with its free market economy, thriving trade circumstances and liveable environment.
The study forecasts that Hong Kong’s ranking will rise to 6th in 2027 and 3rd in 2032 respectively if the city realises the vision outlined by the HKSAR Government in the Hong Kong Innovation and Technology Development Blueprint.
Table 1: Top 10 I&T Regions in Greater China
Rank
Region
Overall
R&D
Start-ups
Talent
Industry
Impact
1
Guangdong
6.77
2.03
2.08
1.00
0.46
1.20
2
Jiangsu
5.20
1.88
1.21
0.86
0.48
0.77
3
Beijing
4.72
2.22
1.68
0.15
0.14
0.52
4
Zhejiang
4.61
1.66
0.91
0.83
0.46
0.75
5
Taiwan
4.28
1.65
0.31
1.13
0.48
0.71
6
Shanghai
3.89
1.74
1.03
0.26
0.32
0.54
7
Hong Kong
3.53
0.82
1.09
0.29
0.00
1.33
8
Fujian
3.00
1.37
0.51
0.39
0.41
0.32
9
Shandong
2.90
1.22
0.30
0.31
0.47
0.60
10
Anhui
2.63
1.23
0.33
0.26
0.39
0.42
Prof. Christopher CHAO, PolyU Vice President (Research and Innovation) and Director of PReCIT, said, “Hong Kong has not fully leveraged its internationally recognised free-market economy due to the dominance of public investment in R&D expenditure. Guangdong, Jiangsu and Beijing, in contrast, have successfully optimised their investment policies promoting private capital investment in local start-ups. Hong Kong is advised to enhance private investment in R&D and strengthen the venture capital flow from the Mainland to Hong Kong in order to more effectively support the ongoing development of Fintech and the I&T ecosystem.”
Prof. Eric CHUI, Co-Director of PReCIT and Head of the Department of Applied Social Sciences, continued, “The number of patents is a crucial parameter for measuring I&T advancement. R&D institutions in Hong Kong, including universities and enterprises, are encouraged to apply for patents and participate in setting standards with the Mainland to better align with the 14th Five-Year Plan. However, the cost of maintaining intellectual property rights in the early stages of start-ups is high, which discourages entrepreneurs from protecting their unique business ideas and competitiveness. The Government is recommended to increase the funding limit for each enterprise or individual application to encourage innovation and entrepreneurship, and strengthen the I&T talent pool for long-term sustainability.”
2) Comparison of GBA with other Three Bay Areas
The San Francisco Bay Area and Tokyo Bay Area rank 1st and 2nd among the world’s four largest Bay Areas with scores of 6.99 and 4.07 respectively, followed by the Greater Bay Area (3rd, score: 3.75) and the New York Bay Area (4th, score: 3.14).
Silicon Valley in the San Francisco Bay Area is home to some of the world's leading tech companies, and the Tokyo Bay Area is well-known for its advances in robotics and electronics, while the New York Metropolitan Area is a hub for finance and media. According to Table 2, the Greater Bay Area scores lowest in the R&D and Start-ups sub-categories. It scores the highest among the other three bay areas in the aspects of Talent and Impact to society.
Table 2: Four Bay Areas’ I&T Ranking
Rank
Bay Area
Overall
R&D
Start-ups
Talent
Industry
Impact
1
San Francisco
6.99
2.51
3.00
0.90
0.08
0.50
2
Tokyo
4.07
1.75
0.59
0.64
0.30
0.78
3
GBA
3.75
0.49
0.23
1.24
0.50
1.29
4
New York
3.14
0.97
1.01
0.75
0.00
0.41
Prof. Haitian LU, PolyU Director of Mainland Development and Core Member of PReCIT, commented, “To differentiate itself from other bay areas and consolidate its position as a global economic and technological powerhouse, the GBA is advised to more effectively address social innovation and inclusivity, and improve access to education and healthcare. Better integration within the GBA is crucial for enhancing its ranking in the future. Hong Kong can strengthen its collaboration with GBA cities by leveraging its strength as an international financial centre and accelerating interconnectivity within the Area to empower the GBA’s overall development.”
Dr Winnie TANG, Adjunct Professor of the Department of Applied Social Sciences and Founder and Honorary President of the Smart City Consortium, added, “As the first Interactive Map Dashboard for I&T index focusing on the Greater China region and bay areas, the index will serve as a platform to enhance collaboration and take the I&T development of Hong Kong to new heights. This is especially true in the areas of new industrialisation, digital economy and smart city, after Guangdong and Hong Kong signed the ‘Co-operation Agreement between Guangdong and the HKSAR on Co-developing a Smart City Cluster’ in March 2023 to enhance mutual exchanges within the GBA.”
Recommendations for Hong Kong
Increase R&D expenditure and encourage patent licensing.
Support I&T start-ups and establish the I&T ecosystem.
Retain and attract I&T talents, and improve the public’s innovation awareness.
Leverage Hong Kong’s strategic positions to accelerate new industralisation.
Harness the green economy and enhance I&T development.
Embrace the digital economy with the innovation evaluation framework.
Accelerate GBA integration for building a leading international innovation and technology hub.
The full report is available at: https://polyu.me/PolyUInTIndex2023
Press Release: Click here (English Verision) Click here (Chinese Version)
Interactive Dashboard:
Hong Kong and China I&T index (arcgis.com)
Four Bay Areas Innovation and Technology Index (arcgis.com)
Established in 2022, PReCIT is a University-level interdisciplinary I&T think-tank. Its primary areas of research include carbon-neutral cities, Greater Bay Area I&T development, and the Belt and Road Initiative development in Southeast Asia.
Online Coverage:
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Hong Kong Economic Journal - https://polyu.me/3YGYeXm
Now.com - https://polyu.me/3DYDyAC
RTHK - https://news.rthk.hk/rthk/ch/news-programmes/20230915
Ta Kung Pao - https://polyu.me/47BBRH2
Oriental Daily News - https://polyu.me/3R0E49l; https://polyu.me/3DYya0w
Hong Kong Business Times - https://polyu.me/3E2yewq
Dot Dot News - https://polyu.me/45dV6or
ThinkHK - https://www.thinkhk.com/article/2023-08/17/61195.html
Infocast - http://iportal.infocastfn.com/taitak_portal/News/viewInfocastNews
AAstock - http://www.aastocks.com/tc/stocks/news/infocast-news/IC4115522/1
QUAM - https://www.quamnet.com/post/8pGr24jtHaRHriHy0bej_
Hong Kong China News Agency - https://polyu.me/45jt3nS
China Daily - https://www.chinadailyhk.com/article/346494
China News Service - https://polyu.me/44eTV73
East Money - https://polyu.me/3OF6jHB
Print Coverage:
Oriental Daily News
Hong Kong Economic Journal
Ta Kung Pao
Sing Tao Daily
