ENG-1993 — Page 111

INDUSTRY AND TRADE

With its expanded terms of reference and a more focussed and co-ordinated approach, the council is better placed to advise the government in this area. A proposal was being drawn up at the end of the year to provide the ITDC with a budget of more than $900 million over the next four years to support industry. A Technology Committee advises on technology issues with relevance to Hong Kong's industrial and economic development, and the Technology Review Board gives advice on the directions for technology development on the basis of global technology trends.

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.

On June 1, the Hong Kong Industrial Technology Centre Corporation was established to facilitate the promotion of technological innovation and the application of new technologies in local industries. Among other things, the centre acts as an incubator for technology-based companies that are starting up.

A study commissioned by the Industry Department in 1992 made recommendations to upgrade Hong Kong's technology infrastructure, including the establishment of a science park. The department is now planning to commission a further study to examine the feasibility of implementing these recommendations.

In December 1991, the Finance Committee of the Legislative Council approved $200 million from the Capital Investment Fund as up-front capital for an applied research and development (R&D) scheme. The objective of the scheme is to increase the currently limited volume of applied R&D activity in Hong Kong by providing government funding as a catalyst. The longer-term objective is to improve the technological capability and competitiveness of local industry, in this way helping to sustain Hong Kong's economic growth. A private company named the Hong Kong Applied R&D Fund Company Limited was established in February to administer the scheme. The company is wholly owned by the government, with a board of directors comprising mainly non-officials with a wide spectrum of expertise. Under the scheme, funding support of up to half the cost of a single applied R&D project, or a total of $10 million for a single company or organisation, can be granted. Funding support can either take the form of a loan or equity participation, or a combination of both. Companies incorporated under the Companies Ordinance and statutory bodies undertaking applied R&D locally are eligible to apply.

External Trade

Hong Kong is the world's 10th largest trading entity in terms of the value of its merchandise trade.

With total exports valued at $1,046,251 million and imports at $1,072,597 million, the territory recorded a trade deficit of $26,346 million in 1993.

Its largest trading partner is China, followed by the United States of America and Japan. Appendices 15 and 16 provide summary statistics of external trade.

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