ENG-2011 — Page 155

Commerce and Industry 115

overall competitiveness. To provide continued support to SMEs, approval was obtained from the Finance Committee of the Legislative Council in July 2011 to substantially increase the total loan guarantee commitment for the SME Loan Guarantee Scheme from the then $20 billion to $30 billion, and to inject an additional $1 billion into the Export Marketing Fund and Development Fund for SMEs, increasing the Funds from $2.75 billion to $3.75 billion.

Promotion of Innovation and Technology

Innovation and technology development is a key driver of economic growth. The Government is determined to facilitate the growth of this industry which Hong Kong enjoys clear advantages. Over the years, the Government had been providing both hardware and software support to foster innovation and technology development and to create synergies among the government, academia, research and industrial sectors.

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 applied R&D projects that help upgrade technology and promote innovation in the manufacturing and service industries. By the end of 2011, the fund had provided $6.3 billion to support more than 2 680 projects undertaken by research. institutions and the industry.

The Small Entrepreneur Research Assistance Programme under the ITF, provides matching grants of up to $4 million per project to help small start-up companies to carry out R&D to turn innovative technological ideas into commercially viable products or services. By the end of 2011, $388 million had been provided to assist 353 such projects.

Research and Development Cash Rebate Scheme

The Government launched an 'R&D Cash Rebate Scheme' on April 1, 2010 to reinforce the research culture among enterprises and to encourage them to establish stronger partnership with local research institutions. Under the $200 million scheme, the Government provides a 10 per cent cash rebate to companies conducting applied R&D projects under the ITF, or in collaboration with designated research institutions. By the end of 2011, the scheme had approved over 340 applications for rebate amounting to about $10.5 million.