ENG-2010 — Page 149

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Innovation and Technology Commission

The Innovation and Technology Commission (ITC) is responsible for spearheading Hong Kong's drive to become a world-class, knowledge-based economy. The commission is part of the Commerce and Economic Development Bureau (CEDB). It formulates and implements policies and measures to promote innovation and technology; supports applied research and development (R&D); supports technology transfer and applications; promotes technological entrepreneurship; facilitates the provision of innovation and technology infrastructure and development of human resources; and promotes internationally-accepted standards and conformity assessment services to underpin technological development and international trade.

Innovation and Technology Fund

A $5 billion Innovation and Technology Fund (ITF) was established in 1999 to support projects that help upgrade technology and promote innovation in the manufacturing and service industries. By the end of 2010, the fund had provided $5.7 billion to support more than 2 250 projects undertaken by research institutes and the industry.

In January 2009, the ITF internship programme was expanded to provide more opportunities for local graduates to participate in R&D work. Under the programme, additional financial support is provided to ITF projects that employ up to two interns for an internship lasting up to 24 months. More than 300 internships were provided in 2010.

Another ITF scheme, Small Entrepreneur Research Assistance Programme, provides matching grants of up to $4 million per project to help small start-up companies to carry out R&D in turning innovative technological ideas into commercially viable products, processes or services. By year-end, $363 million had been provided to assist 334 such projects.

Research and Development Cash Rebate Scheme

The Government launched an 'R&D Cash Rebate Scheme' on April 1, 2010 to encourage enterprises to invest more in R&D. Under the $200 million scheme, the Government provides a 10 per cent cash rebate on the R&D investments by companies conducting applied R&D projects under the ITF or in collaboration with designated research institutions. By the end of 2010, the scheme had approved over 150 applications for rebates amounting to about $4.5 million.

Hong Kong Applied Science and Technology Research Institute Company Limited

The publicly-funded Hong Kong Applied Science and Technology Research Institute Company Limited (ASTRI) was set up in January 2000 to carry out research and development projects to help raise the standard of Hong Kong's technology- based industries and to strengthen their growth. The ASTRI houses the R&D Centre for Information and Communications Technologies which focuses on matters relating to five technology industries: communications technologies, consumer electronics, integrated circuit design, opto-electronics, and bio-medical electronics.