Secretary for Commerce and Economic Development Algernon Yau delivers opening remarks before the Policy Dialogue – Powering Economic Growth through a Future-Ready IP Policy in the Business of IP Asia Forum at Hong Kong Convention and Exhibition Center in Wan Chai, Hong Kong on Dec 7, 2023. (ANDY CHONG / CHINA DAILY)

The Hong Kong Special Administrative Region government will launch a “patent box” tax incentive in the first half of next year, with the aim of cementing its position as a regional center for intellectual property (IP) trading, and leveraging the power of IP to drive economic development and digital transformation, officials said at the 13th Business of IP Asia Forum on Thursday.

According to a study conducted by the Intellectual Property Department, IP-intensive industries in Hong Kong contributed to 32.7 percent of the SAR’s gross domestic product and 29.1 percent of its employment from 2019 to 2021.

The figures demonstrate the “pivotal role IP plays in our economic development” and IP’s “cornerstone position of today’s global economy”, Algernon Yau Ying-wah, secretary for commerce and economic development, said at the session on policy dialogue.

READ MORE: Experts: HK well poised to cash in on IP trading

Margaret Fong, Executive Director of Hong Kong Trade Development Council delivers welcome remarks during the Business of IP Asia Forum at Hong Kong Convention and Exhibition Centre in Wan Chai, Hong Kong on Dec 7, 2023. (ANDY CHONG / CHINA DAILY)

Echoing Yau’s views, Margaret Fong, executive director of the Hong Kong Trade Development Council, said, “With this potential to create opportunities for businesses, IP can transform economies and drive sustained economic growth.”

Yau revealed that the government has been making efforts in patent regime and artificial intelligence (AI) “to further develop the SAR into a dynamic regional IP trading center”.  

Legislative amendments are set to be introduced in the first half of 2024 to pave the way for the launch of the “patent box” tax incentive, under which the government will offer a comprehensive tax regime to taxpayers who have brought their research and development outcomes to the market and commercialized their patented inventions, the commerce chief said.

Specifically in the field of AI, the government will initiate a consultation among stakeholders next year to explore ways of enhancing copyright protection for AI-generated work, so as to back the development of AI technology in Hong Kong.

Deputy Financial Secretary Michael Wong Wai-lun delivers opening remarks during the business of IP Asia Forum at Hong Kong Convention and Exhibition Center in Wan Chai, Hong Kong on Dec 7, 2023. (ANDY CHONG / CHINA DAILY)

In addition to the longstanding common law system that ensures secure and transparent IP transactions, Hong Kong is home to world-renowned universities and institutions rich in IPs and patents, Deputy Financial Secretary Michael Wong Wai-lun said at the forum. 

The Hong Kong Science Park, for instance, has established collaboration with 30 world-class universities and research institutes, and 29 laboratories have immersed themselves in the research of key sectors, such as life science and healthcare, AI, and robotics.

Shenzhen-Hong Kong-Guangzhou science and technology cluster ranked second globally for the fourth consecutive year, and Hong Kong remained fifth in Asia and 17th globally among 132 economies  

“Playing a pivotal role in the Guangdong-Hong Kong-Macao Greater Bay Area (GBA)”, the SAR also enjoys huge opportunities in the domain of IP development created by the GBA 86 million people and many leading innovation and technology enterprises, Wong added.

In the Global Innovation Index 2023 published by the World Intellectual Property Organization in September, the Shenzhen-Hong Kong-Guangzhou science and technology cluster ranked second globally for the fourth consecutive year, and Hong Kong remained fifth in Asia and 17th globally among 132 economies.

READ MORE: Hong Kong's IP-driven economy in the making

A pilot project for prioritizing examination of qualified invention patent applications filed by Hong Kong applicants on the mainland was launched on Jan 1, which can been seen as one of the measures proposed by the mainland to support the SAR in patent examination, talent cultivation and setting up information platforms, said Lu Pengqi, deputy commissioner of the China National Intellectual Property Administration.

Margaret Fong Shun-man (second from left), executive director of the Hong Kong Trade Development Council, and Michael Wong Wai-lun (second from right), deputy financial secretary of the Hong Kong Special Administrative Region, pose for a photo with other guests in front of a booth outside the Business of IP Asia Forum venue, at the Hong Kong Convention and Exhibition Centre, on Dec 7, 2023. (ANDY CHONG / CHINA DAILY)

Contact the writer at irisli@chinadailyhk.com