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Commerce and Industry

SME funding schemes to help SMEs secure loans from financial institutions, expand export markets and enhance overall competitiveness.

In the light of the uncertain external economic environment and the financing difficulties which enterprises (in particular SMEs) might face as a result of possible credit tightening, in May the Hong Kong Mortgage Corporation Limited introduced a time-limited special concessionary measure under its SME Financing Guarantee Scheme to provide 80 per cent loan guarantees at a concessionary fee rate. The Government has provided a total loan guarantee commitment of $100 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 in which Hong Kong enjoys clear advantages. The Government provides both hardware and software support to foster innovation and technology development and to create synergies among the government, industry, academia, and the research sector.

Innovation and Technology Commission

The Commerce and Economic Development Bureau's Innovation and Technology Commission spearheads Hong Kong's drive to become a world-class, knowledge-based economy. 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

The Innovation and Technology Fund (ITF) supports applied R&D projects that help upgrade technology and promote innovation in the manufacturing and service industries. By the end of 2012, the fund had committed over $7 billion to support more than 3,000 projects undertaken by research institutions and the industry. In July 2012, the financial ceiling for each ITF project was raised from $21 million to $30 million, while the funding scope was extended to cover the production of prototypes/samples and conduct of trial scheme in the public sector (including government departments, public bodies and trade associations) for all ITF-funded projects.

The ITF's Small Entrepreneur Research Assistance Programme provides matching grants for R&D by small start-up companies to turn innovative technological ideas into commercially viable products or services. By the end of 2012, $398 million had been provided to assist 359 projects. In April 2012, the following enhancements were implemented:

⚫ the funding ceiling for each project was increased from $4 million to $6 million;

⚫ the programme was extended to cover enterprises with venture capital investment; and

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