INDUSTRY AND TRADE
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On the recommendation of the Industry Development Board, the Hong Kong Design Innovation Company Limited, a private company, was formed and incorporated in October, with government financial assistance initially, to provide local industry with a product innovation and design service.
During the year, the board formulated a three-year plan for a unified approach to implementing various proposals for supporting industry in a co-ordinated and effective way. In addition, a techno-economic and marketing research study on the plastics industry began in April and a research study on computer-aided design and manufacture systems started in July. The board was also in the process of commissioning an in-depth study on the textiles and clothing industry. Three research projects on electronics technologies undertaken by the two universities and the Hong Kong Polytechnic continued.
Industrial Investment Promotion
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To strengthen industrial investment promotion activities, the fifth overseas investment promotion office of the Industry Department is being established in New York. The four existing offices - in London, Stuttgart, Tokyo and San Francisco - continued to generate considerable interest in Hong Kong as a manufacturing base, but with the United States remaining by far the most important source of investment and enquiries, the need for a second office in the United States had become clear.
The department's promotion activities are geared towards encouraging the introduction into Hong Kong of new or improved production technology and processes, so that local industry can upgrade its methods and continue to move towards higher technology and higher manufacturing skills.
The overseas offices are linked to a ‘One Stop Unit' in Hong Kong, which, with its wide network of contacts in both the government and the private sector, is well placed to provide useful information to assist potential investors. This unit also helps local manufacturers to find overseas partners or firms willing to enter into licensing or other agreements.
In 1985, the department received a total of 405 industrial investment enquiries from around the world, and at the end of December was dealing with 496 active investment promotion projects. The department also increased its efforts in making the services provided by the One Stop Unit better known to local industrialists and overseas investors visiting Hong Kong. In May, the department appointed an advertising agent to co-ordinate its overseas advertising campaign.
As well as responding to enquiries, following through individual projects and developing personal contacts with the public and private sectors, the Industrial Promotion Division carried out a formal promotion programme of outward missions, participation in trade fairs and seminars, and speaking engagements. The Director of Industry spoke at seminars in the United Kingdom, the United States, Japan and Germany, and led a mission of local manufacturers to the United Kingdom in June. Staff from both Hong Kong and overseas offices organised missions and attended trade and industrial fairs, seminars and other functions in North America, Europe, Australia and East Asia.
During the year, an industrial investment promotion film was produced to encourage potential overseas investors to choose Hong Kong as their manufacturing base in the region. Work began on another film, centring on the need for local manufacturers to upgrade their operations. This was scheduled for completion in 1986.
Hong Kong continues to be an attractive location for overseas manufacturers. At the end of 1985, there were some 556 factories either fully or partly owned by overseas interests. These factories employed 91 580 workers or 11 per cent of total industrial employment in