30.
"Although the Government steadfastly believes that it makes much better economic sense to let market forces rather than bureaucrats drive the economic life of Hong Kong, the Government has actually seen fit to intervene in the market-place from time to time, primarily where there is a market failure, or where the market is not functioning as effectively as it should," said Mrs Ip.
By virtue of the 'public goods' nature of scientific discoveries and knowledge creation, and the fact that Hong Kong firms generally have shorter time-horizons, and are constrained by small firm size, the Government has introduced the Industrial Support Fund, the Applied R andD Scheme, and the Co-operative Applied R andŸ Scheme in recent years to stimulate applied R andD that would help raise the technological level of Hong Kong's industries.
"To encourage applied R&D, technology transfer, product and process innovation, the Government has since April 1994 allocated nearly $900 million to fund projects that contribute to technological upgrading," she said.
Mrs Ip pointed out that, apart from the Government's market-oriented policies, Hong Kong's strategic fit with China was another advantage which should provide a firm foundation for the territory's future success.
"Our proximity to China is important not only as a market but as a resource for the next stage of Hong Kong's industrial development.
"Given the vast pool of applied R&D expertise in China, and Hong Kong's happy knack for commercialisation and product development, there is plenty of room for collaboration between the Mainland and Hong Kong in undertaking applied R&D, developing new products and producing, marketing and distributing them", she said.
Mrs Ip also paid tribute to Hong Kong's entrepreneurs, who, without any subsidies or guidance from government, had scored many successes in manufacturing.
She pointed out they were noted for their quick response; ability to spot market trends and produce products which appeal to changing consumer taste; and their expertise in the management of global production.
End
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