According to the Global Innovation Index 2022 brought out by the World Intellectual Property Organisation, Shenzhen–Hong Kong–Guangzhou ranks the top second science and tech cluster in the world, that is, the Hong Kong together with Shenzhen and Guangzhou are the geographical areas around the world with the second highest density of inventors and scientific authors.

The Global Financial Centres Index 32 reveals that Hong Kong ranks as the fourth most competitive financial centre in the world.  With regards to financial technology (fintech), Hong Kong is proud to be one of the top ten most vibrant fintech hubs in the world.

Hong Kong is one of the world’s and Asia Pacific’s leading destinations for start-ups.  The number of start-ups has been increased by 52% from 2018 to 2022 and Hong Kong remains attractive to the startups in a diverse range of industries. In addition, start-ups technologies do help Small and Medium-sized Enterprises streamline communication and workflow and that is one of the reasons why the number of Hong Kong start-ups continue to grow rapidly.

The National 14th Five-Year Plan maps out the strategic directions for Hong Kong to collaborate with other Greater Bay Area (GBA) cities in technology development and exchange of talents.  Hong Kong, with its unique advantages and strong science and tech capabilities, is able to seize opportunities brought forth by the development of the GBA to develop as an international innovation and technology hub and create more room for the sector to grow in the long term. 

The Government has strived to build Hong Kong into an international innovation and technology hub by steering a number of initiatives such as establishment of Innovation, Technology and Industry Bureau, the Innovation and Technology Fund, etc.

According to the World Economic Outlook Report published by the International Monetary Fund in October 2022, global economic activity is experiencing a broad-based and sharper-than-expected slowdown, with inflation higher than seen in several decades.  The cost-of-living crisis, tightening financial conditions in most regions, Russia-Ukraine conflict, and the lingering COVID-19 pandemic all weigh heavily on the outlook.  Global growth is forecast to slow from 6.0 percent in 2021 to 3.2 percent in 2022 and 2.7 percent in 2023.   This is the weakest growth profile since 2001 except for the global financial crisis and the acute phase of the COVID-19 pandemic.  Undoubtedly, the uncertainties in global economic performance will affect the investment and development of innovation and technology businesses in Hong Kong.

Hong Kong is also facing rapidly ageing population and continuously declining fertility rates.  Talent wastage caused by emigration tides and challenges posed by the global competition for talents are the barriers for Hong Kong to retain and develop its talent pools for the innovation and technology sector.  Attracting talents from around the world is crucial to strengthening Hong Kong’s leading position in innovation and technology development, there are comments that Hong Kong’s high living cost and limited land supply will hinder talents and investors to develop their careers or businesses in Hong Kong. 

Although there are some challenges ahead, the Training Board believes that Hong Kong’s competitive advantages and attractiveness of low and simple tax rate, well-structured intellectual property protection system, accessibility to international and Asian markets, business opportunity in Mainland China and free flow of information will continue to facilitate its development as an international innovation and technology hub.