Innovation and Technology Bureau

In order to promote application of innovation and technology in society and improve people’s daily living, the Government proposed to set up a $500 million Innovation and Technology Fund for Better Living.[14] The ITB will consider setting different themes, such as health, transportation, education, safety and environmental protection, so as to facilitate the participation of different sectors.[14]

The eligible applicants include non-government organisations, non-profit making organisations, professional bodies, chambers of commerce and public organisations. The projects must focus on improving people’s daily living and should not be used for profit making or any purpose other than proposals.

The organisations have to sign an agreement with the government and the phased grant will be given according to the progress and achievements of the project as stated in the agreement. A Secretariat is set up to support the daily operation of the fund. An Assessment Committee is established to assess and approve the application from the business community, academia, relevant bureaux or departments, etc.[14]

There is a monitoring and supervision system which monitors the approved projects according to the project phases stated in the agreement. The subvented organisations must maintain a separate and proper set of accounts and records for the projects and submit the progress and financial reports on a regular basis for the Secretariat's review.[14]

The Hong Kong-Shenzhen Innovation and Technology Park is owned by the Hong Kong Science and Technology Park ("HKSTP") in which initiation, operation and management is run by the HKSTP while inter-governmental arrangements were made by the "Joint Task Force on the Development of the Hong Kong-Shenzhen Innovation and Technology Park" ("Joint Task Force").[15]

The Joint Task Force instigated an agreement between Hong Kong and Shenzhen to carry out an extensive study regarding the Lok Ma Chau Loop development ("Loop") in March 2008.[15] The HK-SZ IT Park is located at the Loop, occupying 87 hectares which were originally administered by Shenzhen. The study commenced in June 2009 and was completed in 2014.[15] Two stages of public engagement and consultation were conducted between 2010 and 2012.[15]

An agreements was signed between the two regions agreeing that the Loop would operate under the principles of "applying the laws and land administration system of the HKSAR"; "non-profit making"; and "friendly negotiation".[15]

• Benefit from national policy in IT development
• The HK-SZ IT Park to serve as a "key base for co-operation in scientific research"[15]
• Encourage scientific collaboration among Mainland and international institutes
• Promote "re-industrialisation"[15]
• Support and assists start-ups, small and medium enterprises
• Create a "vibrant I&T ecosystem for various stakeholders in the government, industry, academic and research sectors"[15]

• Bi-annual meetings dedicated to the discussion of the development of the HK-SZ IT Park, additional meeting would be held if it is deemed necessary.
• Relevant reports regarding the HK-SZ IT Park progress would be submitted to facilitate annual review[15]

The Technology Voucher Programme ("TVP") was announced in the 2016- 2017 Budget and was launched under the Innovation and Technology Fund[16] to help the business development of small and medium enterprise ("SME"). The TVP backs "technological services and solutions"-related initiatives and projects to enhance the applicant’s business productivity.[17]

The initial TVP would be implemented for 3 years with $500 million, providing up to a $200,000 fund for each applicant on a 2:1 matching basis.[16] Funded projects are expected to be accomplished in a year while the fund would not cover the business operating costs.[16]

The Bureau submitted proposal of Innovation and Technology Venture Fund to the Finance Committee at Legislative Council in 2016. According to the Document (FCR(2016–17)67),[18] the Fund is to encourage more private organisation, venture capital funds and angel investors to invest in I&T.

The Council finally approved HK$2 Billion to the Fund. The Innovation and Technology Venture Fund Corporation (ITVFC) was then set up. The Corporation will select venture capital funds and co-invest as Co-investment Partners in IT start-ups. The CP has the obligation to identify potential investee companies which qualify as Eligible Local IT Start-ups to the ITVFC for co-investment.

Further details as follows:[19]

＊The application of first batch of the Fund started in 2017 and the deadline will be 15/1/2018. Therefore, the effectiveness of the Fund is yet to be evaluated.

The Bureau had been advocated by former Chief Executive CY Leung in his campaign in 2012. His predecessor Donald Tsang submitted the bill to reform existing bureaus to establish Innovation and Technology Bureau. However, pan-democratic councilor found it offensive as the Chief Executive-elected intervene current administration and legislation. Therefore, they opposed against the bill. It has become political dispute in establishment of the Bureau. And the Bill was not passed.

After CY Leung’s inauguration, the bill of establishing the Bureau had been submitted twice to the Legislative Council. The Bill was originally passed in the Council. However, the pan-democratic councilors filibustered in the Finance Committee against the budget of establishing the Bureau because they were unhappy with the administration about rearranging the agenda of the meeting to prioritise the budget of the Bureau. The Bill was ineffective as the Finance Council could not pass the Budget on the designated time.

The Government submitted the Bill in 2015 again. Pan-democratic councilors filibustered in the Bill and the Budget in the beginning of the debate. However, it passed with the support of the majority of pro-establishment councilors. The Bureau was finally established after three submission of Bill.

In October 2017, Chief Executive Carrie Lam promised to "personally lead a high-level, inter-departmental Steering Committee on Innovation and Technology to examine and steer measures under the eight areas of innovation and technology development as well as Smart City projects" (HKSAR, 2017, p. 28)[20] in her first Policy Address. The objective of the Steering Committee is to foster Hong Kong’s innovation and technology development expeditiously and efficiently.

According to the Enterprise Innovation (2017), the Steering Committee will bring more inter-departmental collaboration to speed up the development process of innovation and technology in Hong Kong. The Committee also creates a top-down approach to formulate policy instead of bottom-up approach which is believed that lacking support from the senior level executives hindering inter-departmental collaboration.

Compared to the hierarchy of Innovation and Technology Bureau, some people were worried[21] that the Steering Committee seems to have a higher level of status to override the function of the Bureau.