ENG-2016 — Page 144

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Innovation and Technology

start-ups, promote re-industrialisation, subsidise SMEs' adoption of technology, and fund projects that made use of I&T to improve the daily lives of people.

In March, the Innovation and Technology Bureau co-organised a session entitled 'Innovation and the New Economy of Hong Kong' at the Boao Forum for Asia Annual Conference. The following month, Hong Kong teams comprising companies, academia and students won 20 gold, five silver and six bronze medals at the International Exhibition of Inventions of Geneva, the world's largest event of its kind. In June, the Massachusetts Institute of Technology Innovation Node Hong Kong launched its mini-accelerator programme. In October, the Ming Wai Lau Centre for Reparative Medicine, the first establishment of Karolinska Institutet outside Sweden, opened in the Science Park.

Research and Development

The Innovation and Technology Fund (ITF) supports applied R&D that upgrades technology and promotes innovation in manufacturing and services. As at end-2016, the fund had committed more than $11 billion to supporting about 5,800 projects undertaken by research institutions and the industry, of which over 3,000 were R&D projects with total funding exceeding $8.7 billion.

The R&D Cash Rebate Scheme reinforces a culture of research among enterprises and encourages them to establish strong partnerships with local research institutions. Companies conducting applied R&D projects under the fund or in partnership with designated institutions are eligible for cash rebates on their investments. The level of rebate was increased to 40 per cent in February. As at end-2016, the scheme had approved more than 1,500 applications for rebates amounting to over $220 million.

During the year, a $2 billion Midstream Research Programme for Universities was launched. Its investment income will be used to support institutions funded by the University Grants Committee to conduct more theme-based midstream research in focused technology areas. Each project may receive up to $5 million; those involving collaboration across multiple disciplines or institutions are accorded priority and a higher funding ceiling of $10 million. The programme started inviting project proposals under the theme, 'Elderly Health and Care, in December.

Start-ups

Hong Kong is ranked among the top five fastest-growing start-up ecosystems and among the top 25 start-up hubs. The city recorded a 24 per cent increase in the number of start-up companies from around the world, from 1,558 in 2015 to 1,926 in 2016, that registered with 38 operators of co-working space, incubation and acceleration programme, according to an InvestHK survey.

During the year, the government worked to establish a $2 billion Innovation and Technology Venture Fund that would co-invest with private venture capital funds in local I&T start-ups on an investment ratio of about 1:2. This is to help start-ups with funding during their early growth and to provide them with the professional knowledge and business network of venture capitalists. The fund is expected to be launched in mid-2017.

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