HK to further support innovation, creative industries: financial chief

Hong Kong will further support and nurture innovation, start-ups and creative industries to maintain competitive edge under the "new economic order," Financial Secretary of Hong Kong Special Administrative Region (SAR) government John Tsang said on Wednesday.

When delivering the 2016-17 Budget, Tsang said the development of emerging markets and IT industry has changed the global economic landscape, gradually shaping a "new economic order", offering new directions for both traditional and emerging industries, and Hong Kong should be well positioned as a key player.

In the application of research and development results, Tsang said the HKSAR government will inject 2 billion HK dollars (about 257 million U.S. dollars) to launch a Midstream Research Program for Universities to carry out more applied research projects in key technology areas, and continue with the Technology Start-up Support Scheme for Universities to help commercializing research results.

The HKSAR government will also increase the level of cash rebate under the R&D Cash Rebate Scheme to 40 percent to encourage private enterprises, SMEs in particular, to put more resources into R&D works.

In the start-ups area, Tsang said Hong Kong will set up a 2-billion-HK dollars Innovation and Technology Venture Fund to co- invest with private venture capital funds on a matching basis in local technology start-ups.

Besides, the Science Park will be expanded in stages to provide additional floor area of 70,000 square meters for start-ups and other technology companies by 2020, while the Cyberport will earmark 200 million HK dollars to invest in its start-ups, Tsang said.

The Budget also unveiled series measures to support creative industries, including injecting 400 million HK dollars into the CreateSmart Initiative, with priority given to supporting start-ups and nurturing talents.

Tsang said the HKSAR government will further strengthen the promotion of local fashion brands in Hong Kong and overseas, promote the Cantonese films as well as assist arts groups and sports institutions.