John Lee’s first policy address must turn visions of a Northern Metropolis tech hub into a realistic plan
- New infrastructure does not mean that technological innovation will automatically follow
- We will need incentives to draw tech talent to live and work in the area, and policies that encourage research and collaboration
The Northern Metropolis won’t be a replica of our existing sprawling harbourside metropolis. We are trying to transform virtually bare land not only into an area fit for living and working, but into a world-class innovation and technology (I&T) hub. The Northern Metropolis is expected to house industries offering 650,000 high-paying jobs, with one quarter of them in the I&T sector.
Hong Kong also enjoys preferential access to the mainland through the Closer Economic Partnership Arrangement (CEPA), yet we are hindered by restrictions on entry into certain core industries, such as genetic testing and therapies which we have a strong edge in. If designated parties in the Loop area could be exempt from these restrictions, both sides of the border would benefit.
We can make a similar case for other entities that fall within the I&T value chain: can companies in the Loop, after getting a Hong Kong patent, enjoy a faster application process for a Chinese patent? Can biotech companies in the Loop enjoy priority review by the mainland’s drug regulating body? These are endeavours that we could embark on.
Plans to establish Taiwan-based chip manufacturers in Hong Kong over the years reportedly failed to materialise. It was also reported that a pharmaceutical company’s interest in setting up a vaccine plant here was not proactively received.
Similarly, there was talk that a leading contract research organisation (CRO) had explored settling in Hong Kong several years ago, yet we did not have flexible enough occupancy policies to accommodate its large-scale R&D activities. All these companies went elsewhere.
In short, the creation of a Northern Metropolis will not inherently result in the rise of a new centre of innovation. The government put forward some proposals on core infrastructure last year, yet we are still awaiting more extensive industrial policies.
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We hope next week’s policy address will add some concrete plans to the government’s vision, and address some, if not all, of the most commonly raised problems.
Apart from common industrial policies, the promised I&T development blueprint should also outline key emerging industries that Hong Kong could lend its capabilities to, specific areas we should specialise in, industry-specific regulatory reforms and clear GDP goals.
We are confident in the government’s determination and are truly looking forward to its fast and big moves to transform adversity to opportunity.
Arthur Tsang is assistant researcher at Our Hong Kong Foundation
Eva Luo is research intern at the foundation