5
Commerce and Industry
Industrial Policy
Hong Kong has benefited significantly with the global centre of economic gravity shifting to Asia and the implementation of the National 12th Five-year Plan ushering in a new wave of development for the Mainland economy. Its competitive edge, coupled with the government's 'appropriately proactive' approach, makes Hong Kong well placed to diversify its industries to meet the aspirations of its people for start-up initiatives, investment, business operation and employment. The government seeks to increase business volume, diversify the products and services of existing industries, and identify new areas for development.
Since its establishment in January 2013, the Economic Development Commission, led by the Chief Executive, has been studying and considering the overall strategy and policy to broaden Hong Kong's economic base and to enhance economic growth and development. The commission's four working groups, responsible for transport; convention and exhibition industries and tourism; manufacturing industries, innovative technology, and cultural and creative industries; and professional services, have submitted specific recommendations for the related industries for the government's consideration.
Small and Medium Enterprises
Small and medium enterprises refer to manufacturing businesses that employ fewer than 100 people and non-manufacturing businesses employing fewer than 50 people in Hong Kong. The territory has about 320,000 SMEs, representing 98 per cent of all local enterprises and employing 1.3 million people. The Trade and Industry Department operates three funding schemes to help SMEs secure loans from lending institutions, expand export markets and enhance their competitiveness.
Promotion of Innovation and Technology
Innovation and technology development is a key driver of economic growth. The government is determined to develop Hong Kong into a knowledge-based economy and an innovation hub for technology and its application in the region. In November 2015, the Innovation and Technology Bureau was established with the responsibility of formulating holistic innovation and technology policies, thereby fostering the development of innovation and technology and related industries in Hong Kong.
Innovation and Technology Commission
The Innovation and Technology Commission under the bureau implements policies and measures to promote innovation and technology development. It also promotes internationally accepted standards and conformity assessment services to underpin technological development and international trade in Hong Kong.
Innovation and Technology Fund
The Innovation and Technology Fund (ITF) supports applied research and development (R&D) projects that help upgrade technology and promote innovation in the manufacturing and service industries. In February 2015, the Legislative Council approved an injection of $5 billion into the fund to provide sustained and comprehensive support for the development of
93