COMMERCE AND INDUSTRY
supporting the development of SMEs. The department will expand and fully implement the programme to benefit more SMEs.
Promotion of Innovation and Technology
To make Hong Kong a regional centre for innovation and technology, the Government has been implementing recommendations of the Chief Executive's Commission on Innovation and Technology to drive forward innovation and technology, particularly in respect of the proposed institutional arrangement and the building up of human capital.
Council of Advisors on Innovation and Technology
In a step to strengthen the Government's institutional framework in accordance with the commission's advice, the Chief Executive appointed a Council of Advisors on Innovation and Technology (CAIT). The council is a high-level standing advisory body reporting directly to the Chief Executive. Its role is to advise and make recommendations to the Chief Executive on matters relating to innovation and technology so as to optimise their contributions to Hong Kong's economic development.
The CAIT was established in April 2000 and it now comprises a total of 16 members; 14 of them are non-official members mainly from the business and academic sectors, either locally or externally. All are experts in their respective fields covering finance, economics, electronic engineering, telecommunication technology and services as well as biomedical engineering. Four Special Advisors have also been appointed to provide expert advice to the council. These Special Advisors are renowned experts in their fields.
Innovation and Technology Fund
The $5 billion Innovation and Technology Fund supports projects that will help promote innovation and technology upgrading of the manufacturing and service industries. By the end of the year, the fund had provided financial support of some $526 million to 236 projects undertaken by industrial support bodies, trade and industry associations, higher education institutions, professional bodies and locally incorporated companies.
Promoting Technological Entrepreneurship
Major efforts have been made to promote technological entrepreneurship. A $750 million Applied Research Fund was established in March 1998, replacing two previous schemes to provide equity finance for technology ventures in the private sector. In November 1998, private venture capital firms were appointed as managers for the fund. Besides selecting technological ventures for investment, the venture capital firms provide management and networking advice to the investee companies. By the end of the year, $306 million in financial support had been provided to 18 companies through these fund managers.
Hong Kong Applied Science and Technology Research Institute Company Limited The publicly funded Hong Kong Applied Science and Technology Research Institute Company Limited (ASTRI) has commenced operation. It performs relevant and high quality research and development for transfer to industry for commercialisation with
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