Proposal and Implementation Plan: Beijing-Guangdong-Hong Kong Knowledge

CorridorAlan Lung 6

November 2012 Beijing-Hong Kong Technology Cooperation and Investment Seminar

北京 - 廣東 - 香港知識走廊 建議和實施計劃

龍家麟 2012年 11月 6日

「京港科技招商與投融資對接」研討會

Zhejiang University Hangzhou

Beijing Academy of Science & Technology

PECC Beijing Conference

Jinan University Guangzhou

Hong Kong SAR Government Office in Beijing

IPR2 Beijing Office

Hong Kong Science & Technology Park

NDRC & SIPO Beijing

Links to Scotland, USA & EuropeEU in HK & Beijing

About:

Chen Hongshen 陈宏生 Zhu Shilong 朱世龙 Samson Tam 譚偉豪

Meeting with Commission of Science and Technology of

Municipal Government of Beijing (9 September 2010 in Beijing):

Gordon McConnachie, CTO of APICC and major tech-transfer units from around the world in Beijing

(ITTN 2012 International Technology Transfer Conference, 26 March 2012)

AUTM (USA)Tsinghua (China) Association of University

Technology Managers (USA)

Enterprise Europe Network DG Enterprise and Industry, European Commission

•Hong Kong’s Overall Ranking: 9(+2) (China:29 (-2))• HK is at “Stage 3” of economic development (i.e. innovation driven) – along with Japan, Singapore, South Korea and Taiwan

• Basic Requirements: 3(-2) (institution, infrastructure, macroeconomics environment, health & primary education)

• Efficiency Enhancers: 3 (-1) (of which HK ranks no. 1 in the world in “Financial Market Development”)

• Innovation & Sophistication Factors: 22 (+2) HK is below 0ECD’s average while China is improving steadily:

(China:31 (+3))

Silicon Valley has a solid industrial base: R&D, strong manufacturing capacity, creativity and presence of grateful entrepreneurs …

產業政

策

At a philosophical levelHong Kong’s industrial development

policy had remained unresolved:

Free Market Economy, rule of law, freedom of information and the need to develop high value-added industries acknowledged by CY Leung; however:

•“Service Economy” or “Manufacturing”?

• Current status of “Six New Industries”?

•“Sector Neutral” or ”Sector Biased”?

The proposed BJ-GD-HK Knowledge Corridor:

Build “Expertise Clusters” in Technology-transfer and Technology-commercialization

BTEC/ITTN in Beijing and APICC in Hong Kong will jointly apply for Enterprise Europe Network (EEN) membership as EEN-Beijing and EEN-Hong Kong in late 2013 (for approval and implementation in 2014):• EEN is the largest technology transfer network in the world; EEN is owned by the European Union;• Enables Tech-transfer and Tech-commercialization know-how to be imported from Europe;• EEN-Beijing and EEN-HK will receive coaching from EEN-Scotland, a unit of the Scottish Government.

The proposed BJ-GD-HK Knowledge Corridor

Maximizes BJ-GD-HK’s External Economy of Scale and integrates “Expertise Cluster”, “Regional Cluster” &

“Industry Cluster” development policies BJ, GD and HK on their own do not have all the success factors needed to build a “Silicon Valley” type of economy:

• Beijing: R&D is 5.5% of Beijing’s GDP (4 times the national average); 50% of China’sTech-transfer;

• Guangdong: 37.7% of China’s high-tech manufacturing export;(Source: OECD Review of Innovation Policy – China, OECD 2008)

• Hong Kong: built on a tradition of free market and ‘good law, well administered’; HK uses English as a business language and is seamlessly connected to the West.

The proposed BJ-GD-HK Knowledge Corridor

Builds “Regional Clusters” within China, it is also a practical implementation of

EU-China Cooperation: Linking people, skills and knowledge at a Regional Level:

• Strategic transition from focus on R&D exclusively to innovation and commercialization of R&D;

• Supports Europe’s strategy for post 2008 economic growth;

•Assists European companies’ wishes to do business with China through Hong Kong;

• Supports the national “12th Five Year Plan” and China’s wish to cooperate with the West.

The proposed BJ-GD-HK Knowledge Corridor

A strategy for China to move from “Sustained Development” to “Sustainable Development”

A strategy that combines European expertise, China’s strengths in science and technology and high-tech manufacturing; and Hong Kong’s service capacity to facilitate economic transitions:

• China’s “Sustained Development” (through investment by the State) to “Sustainable Development” (through values created from Technology Transfer and Technology Commercialization);

• Hong Kong’s narrow industry base and over-reliance on the financial and property sectors.

The proposed BJ-GD-HK Knowledge Corridor:A strategic move from IP Protection alone to

making money from R&D and IP Rights

$and Jobs

$and Jobs

Structural Capital (generic)Structural Capital (generic)

Complementary BusinessAssets (differentiated)

Intellectual Capital (unique)

Value Creation Value Extraction

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HumanCapital(Free Innovation)

HumanCapital(Free Innovation)

IntellectualAssetsIntellectualAssets

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Source: © Patrick Sullivan, ICMG

Focusing on knowledge-intensive economic activities is NOT a sector-specific (vertical) industry support policy:

• Instead, it follows a “horizontal” policy of supporting all knowledge-intensive industries that has high value-added potential -- an approach favored by the OECD and European Union; •It resolves the difference between the Hong Kong General Chamber of Commerce and the HKSAR Government on “Sector-biased” (e.g. “Six New Industries”) versus “Sector-Neutral” industry support policies;

• It is also a SME support and Service Industry support strategy at the same time.

The proposed BJ-GD-HK Knowledge Corridor

Resolves differences and supports SMEs, service industries and manufacturing

industries in Hong Kong

The proposed BJ-GD-HK Knowledge Corridor

Combines high-level strategies and the know-how and know-who to

make things happen

The proposed BJ-GD-HK Knowledge Corridor

Support from industries, consensus building, practical government policy and promotion support now needed:

enterprise china network

Thank you!

List of references:

1. “A history of Silicon Valley – The Greatest Creation of Wealth in the History of the Planet”, Rao and Scaruffi, Omniware Group, 2011

2. “The Global Competitiveness Report 2012-2013”, World Economic Forum 20123. “The OECD Innovation Strategy – Getting a Head Start on Tomorrow”, OECD 20104. “OECD Review of Innovation Strategy – China”, OCED 20085. “OECD Reviews of Regional Innovation, Competitive Regional Clusters – National

Policy Approach”, OECD, 20076. “Hong Kong and the Knowledge-Based Economy: Developments and Prospects”,

Alan Ka-lun Lung, Asian Education and Development Studies, Vol. 1 Iss: 3, Emerald Group Publishing 2012

7. “Hong Kong’s Innovation and Technology Role in Mainland China’s 12th Five Year Plan”, APICC Whitepaper #7, March 2011

8. “Policies and Practices for Hong Kong as a Knowledge Economy and the Proposed Innovation and Technology Bureau”, APICC Whitepaper #8, July 2011

9. “Proposed: Guangzhou-Hong Kong Knowledge Corridor”, Samson Tam Wai-ho, China Daily Asia Pacific Edition, 6 July 2012

10. “Chief Executive of Hong Kong Election Manifesto”, CY Leung 2012