Hong Kong is “changing gear” in developing technology at a pivotal moment as it seeks to build itself into an international innovation and technology center, says Duncan Chiu, who was reelected to represent the technology and innovation functional constituency in the city’s legislature last month.

“We have long been strong in applied technology,” he says. “But, recently, we’ve been pulling government and policy resources to migrate from just application to research and innovation.”

The transition also aligns with the nation’s priorities for the 15th Five-Year Plan (2026-30). Chiu says he believes one key direction for China’s technology sector is the development of research-based technologies. “We have to look at the core technology and innovations instead of the application side,” he says.

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The legislator, who also serves as president of the Hong Kong Information Technology Joint Council, says funding from public and private sources has traditionally favored projects that generate short-term returns.

However, the special administrative region government has rolled out various initiatives to plug the early‑stage funding gap for startups, including the Research, Academic and Industry Sectors One‑plus Scheme and the New Industrialisation Acceleration Scheme that aim to attract long‑term capital and steer more professional investors toward nascent projects.

The SAR authorities also launched the HK$10-billion ($1.28-billion) Innovation and Technology Industry-Oriented Fund in 2025.  

Chiu expects to see the funds going to the market in 2026 to catalyze further market investment, and support early-stage innovative projects from universities, research institutions, and project teams in Hong Kong.

According to the Innovation and Technology Commission of Hong Kong, total funding exceeding HK$54.8 billion had been approved for more than 80,000 projects by September last year.

“We can see the snowball starting to roll,” says Chiu.  

Another aspect of the change, he says, is “the recognition of science to be a very important stage in academics”. “We will not have all the top students applying only for medicine. We want more students to apply for technology or science-related majors in the future.”

As for key technology fields in 2026, he cites artificial intelligence, life sciences, blockchain and digital assets. To develop these sectors, however, one challenge to overcome, he believes, is to strengthen cross‑boundary flows within the Guangdong‑Hong Kong‑Macao Greater Bay Area, including data, talent and sample exchanges.

An ideal region for cross-boundary exchange trials is the Hetao Shenzhen-Hong Kong Science and Technology Innovation Cooperation Zone. The Hong Kong Park of the zone opened in December last year and three buildings are already in full operation, including two wet-laboratory buildings that have attracted over 60 enterprises from the Chinese mainland, Hong Kong and overseas.

The Hong Kong Innovation, Technology and Industry Bureau signed a memorandum of understanding with the national Cyberspace Administration in June 2023 to jointly promote cross-boundary data flow within the Greater Bay Area. By the end of August 2025, about 100 applications for cross-boundary transfer of personal data from different sectors, including healthcare, insurance, and securities, had been processed.

Another concern for many innovation and technology enterprises is land supply.

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Chiu says the Northern Metropolis, which occupies about one-third of Hong Kong’s total land area, will continue to be a focal point of the city’s development strategy this year.

The HKSAR government should expedite the designation of developable sites in the Northern Metropolis by 2026 and identify a list of companies in specific sectors — AI, medical equipment and financial technology — that are willing to expand their presence there.

“We have to bring not just one, but a field of leading companies to Hong Kong,” with the goal of creating a synergistic effect by drawing specific industries to the Northern Metropolis, Chiu says.

Contact the writers at akirawang@chinadaily.com