Nurturing the growth of a science and technology focused sector
became a significant part of the government policies of the first
post-1997 administration. Under the guidance of the late Professor
Tien Chang-lin, former chancellor of University of California,
Berkeley, the government issued a technology blueprint for Hong
Kong shortly after the changeover, which led to a new period of
innovation and growth in the tech sector.
These included the establishment of the following:
Hong Kong Science & Technology Parks
Hong Kong Applied Science and Technology Research
Various funding schemes managed by the Innovation and
The main location of the Hong Kong Science Parks located at Pak
Shek Kok - now comprising around a dozen state-of-the-art
multi-story buildings under its first two phases of construction -
stands as a visible testimony to Hong Kong's attempt to put
itself on the yellow brick road of innovation and technology. In
addition to established tech companies and R&D facilities, its
current occupants include some 100 startup companies under its
incubation program. Since the program's inception, more than
200 incubatees have graduated.
The Hong Kong Applied Science and Technology Research Institute
("ASTRI"), modeled after the successful
Industrial Technology Research Institute
("ITRI") of Taiwan, was established in
2000 and is engaged in mid-stream R&D in IC designs,
communications technologies, enterprise & consumer electronics,
and material & packaging technologies. At the end of 2008,
ASTRI employed more than 340 researchers.
The Innovation and Technology Commission is an executive
government body under the Communications and Technology Branch of
the Commerce and Economic Development Bureau. It manages various
government innovation and technology funds focused on helping local
businesses in the relevant sectors. Among various funding schemes
pertinent to startup financing, is the Small Entrepreneur Research
Assistance Program ("SERAP"), which
provides pre-VC stage financing to startups.
In addition to the above initiatives, the government has had a
long-standing policy to invest substantially in higher education.
Despite its relatively small size, Hong Kong has eight
universities, some of which have won academic acclaim worldwide and
are highly ranked in selected fields. Universities in Hong Kong
have regularly achieved breakthroughs and successes in their
research efforts. Many made significant efforts to commercialize
their research results.
In April 2009, based on the recommendation of a government
appointed economic advisory committee, Chief Executive Donald Tsang
announced that Hong Kong should focus on and encourage businesses
in six major industrial areas where Hong Kong is believed to have
competitive advantages. These areas include innovation and
technology, the cultural and creative industry and the
Some critics charge that much more could have been done by the
government to help innovation and technology based entrepreneurial
pursuits. None would dispute that the policies now in place,
however, are vast improvements compared with the virtual absence of
government support under the so-called "Positive
Non-interventionist" policies of the pre-1997 British
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As per a 2015 survey by Nasscom (the National Association of Software and Service Companies) India has paved the way to secure the third position in the world with three to four startups emerging every day, primarily in the areas of e-commerce, consumer services and aggregators.
Joint Ventures are still a popular investment vehicle for many
foreign investors who do business in China. Sino-foreign joint
ventures can take the form of equity joint ventures or cooperative
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