The Government Work Report delivered by Premier Li Qiang during the two sessions detailed the exceptional accomplishments in socioeconomic development that brought the 14th Five-Year Plan (2021-25) to a successful conclusion.
China’s economic strength, scientific and technological capabilities, and composite national strength continued to rise, and solid strides were made in advancing Chinese modernization during that period, according to the report. In terms of innovation, a stream of breakthroughs emerged in frontier areas such as artificial intelligence, biomedical technology, robotics, quantum technology and aerospace technology. Moreover, a range of indicators demonstrated the dynamism of innovation-driven development and upgraded industrial structure over the past five years. For instance, total societal expenditure on research and development (R&D) grew by 10 percent annually. The number of high-value invention patents reached 16 per 10,000 population. The value added by core digital economy industries accounted for 10 percent of GDP.
The Hong Kong Special Administrative Region government is not behind. It spares no effort in dovetailing with the national strategy for technological development and continuing the implementation of the directions as set out in the Hong Kong Innovation and Technology Development Blueprint promulgated in 2022. To illustrate, the annual growth rate of R&D expenditure has accelerated since the last-term government, rising from 4.8 percent in 2021 to 8.4 percent in 2024. The Shenzhen-Hong Kong-Guangzhou cluster ranked first in the 2025 Global Innovation Index, with the number of local startups increasing by 370 percent over the past decade, rising to about 4,700 in 2024. The Hong Kong Science Park and Cyberport, the city’s two innovation and technology (I&T) flagships, have collectively nurtured and supported around 20 unicorns to date.
Li’s report also outlined major strategic tasks, policies, measures and projects in accordance with the draft outline of the 15th Five-Year Plan (2026-30). As a legislator representing the local I&T sector, my focus was clear. How will Hong Kong proactively align with the 15th Five-Year Plan, better integrate into national development, and contribute to the country’s pursuit of high-quality growth and greater self-reliance and strength in science and technology? There are five directions that must be given the utmost consideration.
The SAR government will refine the associated tax regime and leverage Hong Kong’s strengths in professional services, with a view to building the ecosystem through driving IP valuation, financing and trading
First, the core frontier technology areas being developed in Hong Kong, including life and health technology, AI and data science, advanced manufacturing, and new energy technology, are in line with those set out in the 15th Five-Year Plan. In stepping up the above efforts, I have submitted three proposals to the SAR government, with a view to expediting the development of commercial space, embodied AI, and quantum technology. The last Policy Address and the 2026-27 Budget embarked on forward-looking deployment for these fields.
Second, the 15th Five-Year Plan specified an indicator of R&D expenditures to intensify the push for breakthroughs in core technologies in key fields. Similarly, the SAR government keeps on consolidating strengths in upstream basic research, with the aim of boosting R&D spending to 2.5 percent of GDP by 2035. Meanwhile, the preparatory work for the establishment of the Hong Kong Artificial Intelligence Research and Development Institute and the Life and Health Technology Research Institute will be completed within this year. The third InnoHK research cluster, focusing on new materials and advanced manufacturing, will also be established progressively starting this year.
On the other hand, the government has been enhancing the transformation of research outcomes in the midstream and promoting downstream industrialization. The HK$10 billion ($1.277 billion) Research, Academic and Industry Sectors One-plus Scheme, of which the author is chair, has cumulatively funded 49 projects. They are led by research teams from local universities, and relevant products will be launched in the market. Another HK$10 billion program, namely the New Industrialization Acceleration Scheme, has supported four projects to date, involving a total investment of about HK$2.5 billion, of which more than 70 percent is private investment.
Third, Li’s report concluded that a robust IP protection regime can optimize support for the I&T sector. In the field of research impact evaluation at local universities, there has been a gradual shift of emphasis from academic to economic factors. Some are promoting enlightened patent policies to encourage commercialization. On downstream, Hong Kong is actively fulfilling its role as a regional IP trading center. The SAR government will refine the associated tax regime and leverage Hong Kong’s strengths in professional services, with a view to building the ecosystem through driving IP valuation, financing and trading.
Fourth, one major strategic task outlined in the report was injecting new impetus into the development of new quality productive forces with private capital, and strengthening financial support for the country’s development as a science and technology powerhouse. In Hong Kong, numerous policies were introduced. The Securities and Futures Commission and the Hong Kong Exchanges and Clearing Ltd are leveraging the Technology Enterprises Channel to assist Chinese mainland technology. enterprises in raising funds in Hong Kong. The Hong Kong Investment Corp Ltd has invested in over 190 projects spanning various fields, including hard and core technology, life technology, new energy and green technology. Besides, the HK$10 billion Innovation and Technology Industry-Oriented Fund will be launched this year, under which the government will proactively channel the “patient capital” to invest in emerging and future industries of strategic importance. Also, our support for the financing lifecycle of technology startups would be more complete if we facilitate ambitious measures in venture capital and early-stage investment.
Fifth, Li’s report stressed proactive participation in promoting high-level two-way opening-up. Hong Kong is well-positioned as a “high value-added” base, capitalizing on business opportunities in the fields of legal services, financial services, marketing, testing and certification, etc. The latest measure is the cross-bureau, cross-department, and cross-agency GoGlobal Task Force, which supports mainland enterprises in venturing into global markets through Hong Kong.
The report marked a strong start in implementing the 15th Five-Year Plan. It is also an expression of the premier’s determination to achieve sustainable long-term social and economic prosperity. We must not hold back Hong Kong’s I&T development, but consolidate and expand its strengths to power the nation’s growth in the decades ahead.
The author is a Legislative Council member representing the technology and innovation functional constituency, a tech entrepreneur, and a tech investor.
The views do not necessarily reflect those of China Daily.
