ENG-1992 — Page 96

INDUSTRY AND TRADE

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Science and Technology

Science and technology are transforming the way that business is conducted in all areas of economic activity. Constant advancement in science and technology is essential to Hong Kong's continued prosperity. To ensure that Hong Kong can respond to the rapidly changing technological environment and to underline the vital connection between industry and technology, the Government established in early 1992 an Industry and Technology Development Council (ITDC), which replaced the Industry Development Board and the Committee on Science and Technology. With its expanded terms of reference and a more focussed and co-ordinated approach, this new council is better placed to advise the Government on the overall development of industry and technology in Hong Kong.

Hong Kong has a skilled workforce, ready access to information and technology from overseas, and a sound infrastructure to take advantage of opportunities in technology- based industries. The government is investing substantially in infrastructure to support the use and development of technology in Hong Kong. The key elements of this infrastructure include the provision of education and training in science and technology; the provision of land at development cost to high technology industries; the provision of services and facilities to help manufacturers acquire new technologies; the provision of funding support to applied research and development in industry; and the promotion of technology transfer through inward investment.

In June 1992, in recognition of the need for Hong Kong to improve its technological = infrastructure, the Industry Department commissioned a study to examine the case for

establishing a science park in Hong Kong. The study was completed in November 1992.

The government has also released a $250 million grant and committed another $188 million as an interest bearing loan to meet the initial costs of developing a technology centre in Hong Kong to encourage the growth of technology-based firms. The centre, to be called the Hong Kong Industrial Technology Centre, will be established as a statutory corporation, and will provide accommodation and services for established and fledgling technology-based companies. During the year the Provisional Hong Kong Industrial Technology Centre Company Limited, an interim body pending the establishment of a statutory corporation, began work on planning and developing the technology centre, which is intended to become fully operational in mid-1994.

Electronic Data Interchange

Electronic data interchange, the computer to computer exchange of business information in a standard format, is one of the techniques being implemented worldwide in an attempt to curb the amount of paperwork involved in business and to improve efficiency.

Hong Kong's use of electronic data interchange has expanded considerably during the last few years. The government is keen to encourage this trend as electronic data interchange is seen as an important means of maintaining Hong Kong's competitiveness in international markets.

A particularly important area is the processing of statutory trade documents, such as the lodgement of trade declarations and applications for import and export licences. Following a joint study with Tradelink Electronic Document Services Limited, a group of 11 leading trade-related organisations in Hong Kong, the government agreed to take a substantial shareholding in the company. Tradelink, with government as one of its shareholders, will fund and manage a Community Electronic Trading Service. The service will act as