TNAG-1607-FCO40-22122-Minutes-and-Hansards-of-the-Legislative-Council-of-Hong-Kong-1987 — Page 62

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ensure that the imported technology is utilized effectively. a matter of fact, not much effort is made to understand the technology itself. This 'matchmaking' deal is very profitable in the short term but much less so in the medium or long term.

One of the disadvantages from which Hong Kong suffers badly by applying borrowed technology blindly is the lack of flexibility in industrial production. That is, any innovations in products which warrant changes in the technological processes adopted, make it necessary for the replacement of the old system with a new system. This method of industrial production would in the long run increase production costs and detract from a sound economic base necessary to sustain industrial growth at the level required to ensure the continued competitiveness of Hong Kong in the world market. However, if sufficient -research is conducted prior to technology transfer, the technology can be comprehended, and it will no longer be a 'blackbox' which is unknown and mysterious. This will enable local industries to purchase only the relevant and adaptable parts of externally developed high-technology rather than importing complete systems. Furthermore, changes in technological processes will no longer then mean the purchase of a brand new technological system but only a modification of the present system, hopefully, locally.

In this connection, Sir, I am indeed very happy to learn that the Industry Department intends to develop links with those foreign industrial organisations which exist wholly or in part to promote the transfer of technology on a mutually beneficial basis. I understand that several such organisations in France, Germany, Japan, Switzerland and Scandinavia have already been identified. I would very strongly suggest, if I may, that action in this direction needs to be expedited to ensure that a workable machinery for technology transfer is established in Hong Kong either before the end of this decade or very soon thereafter.