Hong Kong Science Park – Optimising Synergies

Hong Kong Science Park Hong Kong Science Park ––Optimising SynergiesOptimising Synergies

Nicholas Brooke, Nicholas Brooke, ChairmanChairmanHong Kong Science & Technology Parks CorporationHong Kong Science & Technology Parks Corporation

25 February 201025 February 2010

Hong Kong Science ParkHong Kong Science ParkStatutory body incorporated in 2001 under Statutory body incorporated in 2001 under Hong Kong Science and Technology Hong Kong Science and Technology Parks Corporation OrdinanceParks Corporation OrdinanceOperate according to commercial Operate according to commercial principlesprinciplesBoard comprises nonBoard comprises non--executive Chairman executive Chairman and 15 nonand 15 non--executive directors from a executive directors from a wide range of backgroundswide range of backgrounds

Role of GovernmentRole of Government

Essentially the only shareholderEssentially the only shareholderMade available siteMade available siteProvided initial funding for hard and soft Provided initial funding for hard and soft infrastructure infrastructure –– US$1 billionUS$1 billionThereafter Corporation on it own and has Thereafter Corporation on it own and has to make ends meetto make ends meet

New Ideas, New WaysNew Ideas, New Ways

Economic growth is underpinned by technological progress – new and better ways

of doing things

Economic GrowthSustained increase

inGDP per capita

Initial DriversInitial DriversEffect of the Asian financial crisis on the wider economy Traditional economic pillars of finance and services being challengedUrgent need to build a knowledge-based, more balanced and diversified economyMajor potential for technology-based innovation to influence/change our lives for the better

HKSTP HKSTP –– VisionVision

To be the flagship for technology industry To be the flagship for technology industry innovation in Hong Konginnovation in Hong KongTo position Hong Kong as a major To position Hong Kong as a major international centre for innovation and international centre for innovation and technology development for high valuetechnology development for high value--adding, skilladding, skill--intensive manufacturing and intensive manufacturing and service industriesservice industries

Hong Kong Science & Technology Parks Hong Kong Science & Technology Parks CorporationCorporation

Hong Kong Science ParkHong Kong Science Park InnoCentreInnoCentre

Industrial EstatesIndustrial Estates

Location of Science ParkLocation of Science Park

HONG KONG SCIENCE PARK香港科学园

YUEN LONG INDUSTRIAL ESTATE元朗工业园

INNO CENTRE创新中心

TAI PO INDUSTRIAL ESTATE 大埔工业园

TSEUNG KWAN O INDUSTRIAL ESTATE 将军澳工业园

Location of Science Park

HKSTP HKSTP –– MissionMissionTo provide quality infrastructure and To provide quality infrastructure and support facilities for innovation and support facilities for innovation and development of selected technology development of selected technology clusters clusters To provide fullTo provide full--service incubation service incubation programme for technology startprogramme for technology start--upsupsTo foster partnership and collaboration To foster partnership and collaboration between industry and universities and between industry and universities and applied research institutesapplied research institutes

HKSTP HKSTP -- CampusCampus

StateState--ofof--thethe--art physical and soft art physical and soft infrastructureinfrastructureThreeThree--phase development with Phase 1 phase development with Phase 1 and 2 currently comprising 20 buildingsand 2 currently comprising 20 buildingsUltimate development will cover 330,000 Ultimate development will cover 330,000 square metressquare metresKnowledgeKnowledge--based campus environment based campus environment occupying 22 hectaresoccupying 22 hectaresHome for 250 companies ranging from Home for 250 companies ranging from startstart--ups to established multiups to established multi--nationalsnationals

Companies in HK Science ParkCompanies in HK Science ParkHong KongHong KongUSAUSAMainland ChinaMainland ChinaJapanJapanTaiwanTaiwanFranceFranceGermanyGermanyNetherlandsNetherlandsSingaporeSingapore

UKUKCanadaCanadaAustriaAustriaBelgiumBelgiumKoreaKoreaSwedenSwedenDenmarkDenmarkNorwayNorwayNew ZealandNew ZealandItalyItaly

PPPPSS

Creating Clustering SynergyCreating Clustering Synergy

PrecisionEngineering精密工程 HKSTP

Biotechnology生物科技

Green Technology綠色科技

Electronics 電子

Information Technology &

Telecommuni-cations資訊科技及電訊

Green Technology綠色科技

Electronics電子

PrecisionEngineering精密工程 HKSTP

Biotechnology生物科技

Information Technology &

Telecoms資訊科技及電訊

WorldWorld--class Niche Technologiesclass Niche Technologies

Green Technology綠色科技

Electronics電子

RFID無線射頻識別

IC Design for Mobile Devices流動裝置集成電路設計

Thin Film PV Solar Cells薄膜光伏電太陽能電池

Building Energy Management建築能源管理

Environmental Engineering環境工程

LED發光二極體

Information Technology &

Telecoms資訊科技及電訊

Cluster DistributionCluster Distribution(as at 31 Aug 2009)(as at 31 Aug 2009)

Partner Companies + IncubateesTotal No. of Companies = 279

Electronics29%Biotech/Life

Science8%

Precision Engineering

12% IT & Telecoms

39%

Green Tech8%

Services4%

ServicesServicesTechnical supportIncubation ProgrammeR&D commercialisation and raising of angel fundNetworking and mentoring supportUniversities and industry collaborationTalent Pool ProgrammeTraining and education

Incubation ProgrammeIncubation Programme

100 companies currently in programme100 companies currently in programme213 companies incubated to date 213 companies incubated to date including four IPOsincluding four IPOsActive angel/venture capital raising Active angel/venture capital raising programme (raised HK$584m since programme (raised HK$584m since 2003)2003)Incubatees from all five clustersIncubatees from all five clusters

Technology Support LaboratoriesTechnology Support Laboratories

Integrated Circuit Design & Development Integrated Circuit Design & Development Support CentresSupport CentresReliability LaboratoryReliability LaboratoryMaterials Analysis LaboratoryMaterials Analysis LaboratoryBiotechnology LaboratoriesBiotechnology LaboratoriesPhotovoltaic Test LabPhotovoltaic Test LabIntellectual Property Servicing CentreIntellectual Property Servicing CentreWireless Communication Test CentreWireless Communication Test CentreSolid State Lighting Test CentreSolid State Lighting Test CentreHong Kong RFID CentreHong Kong RFID Centre

Development support through laboratory services from design to production release within a 15 minutes walk

Other Soft InfrastructureOther Soft InfrastructureIndoor exhibition area & technology expositionIndoor exhibition area & technology expositionAuditorium & Conference CentreAuditorium & Conference CentreBusiness CentreBusiness CentreServiced ApartmentsServiced ApartmentsFitness and Recreation ClubFitness and Recreation ClubLakeside alfresco amenity areasLakeside alfresco amenity areasRetail & dining facilitiesRetail & dining facilitiesBanking servicesBanking servicesMedical clinicMedical clinicBakery shopBakery shop

Supporting Local CompaniesSupporting Local Companies(as at 31 Aug 2009)

107

82

79

11

0 20 40 60 80 100 120

PartnerCompanies

Incubatees

Local Foreign

58%

12%12%

88%

42%

12%

Hong Kong Science Park Enabling Growth and Innovation

Phase 1 + 2 Phase 1 + 2 (Current)(Current)

279 Companies279 Companies

7,000 People7,000 People--R&D: 4000R&D: 4000

-- Supporting staff: 3000Supporting staff: 3000

Estimated 2009 Estimated 2009 Annual TurnoverAnnual Turnover

HK$62bHK$62b

Phase 1 + 2 +Phase 1 + 2 + 3 3 (Projected)(Projected)

450 Companies450 Companies

15,000 People15,000 People

Science Park Science Park –– Phase 3Phase 3HKSTP plans to develop Phase 3 as a green HKSTP plans to develop Phase 3 as a green tech cluster focusing renewable energy and tech cluster focusing renewable energy and environmental industries and green technology environmental industries and green technology development and internationalisationdevelopment and internationalisationCommissioned Ove Arup to undertake Commissioned Ove Arup to undertake Sustainability Master Planning Study Sustainability Master Planning Study Plans to commission study to identify focus Plans to commission study to identify focus areas in green tech which would best position areas in green tech which would best position Hong Kong and most benefit the Mainland Hong Kong and most benefit the Mainland

ChallengesChallenges

Low understanding and acceptance of R&D in business communityPrivate investment in R&D is lowLimited VC to support developing companies, especially incubatees

Source: Census and Statistics Department, HKSAR

Overview of Technology Overview of Technology Development in Hong KongDevelopment in Hong Kong

The number of R&D personnel in business sector in 2007 was 4.6 times over that in 1998

Number of R&D Personnel12,700

2,750

1998 2007

1.6

6.1

0

1

2

3

4

5

6

7

HK

D (i

n bi

llion)

1998 2007Year

Total R&D Expenditure

Overview of Technology DOverview of Technology DDevelopment in Hong KongDevelopment in Hong Kong

Annual R&D expenditure by the business sector in 2007 was 3.8 times over that in 1998

Source: Census and Statistics Department, HKSAR

R&D Spending as % of GDP 2006R&D Spending as % of GDP 2006

0.00% 0.50% 1.00% 1.50% 2.00% 2.50% 3.00% 3.50% 4.00%

Sweden

Finland

Japan

South Korea

United States

Taiwan

Germany

Singapore

France

Canada

United Kingdom

European Union

China

Ireland

Spain

Italy

Russia

Hong Kong

SOURCE: OECD, Main Science and Technology Indicators, 2008

OpportunitiesOpportunities

Hong Kong-Shenzhen (PRD) Business ModelMainland’s energy and environmental agendaWorld class research from Hong Kong’s universitiesSupport development of the six economic pillars

Example – DuPont Apollo LtdR&D facilities in Hong Kong and manufacturing capabilities in Shenzhen, forming a full value chain:w Hong Kong to contribute R&D talentsw The Shenzhen Municipal Government to provide land and other

facilities to support the downstream development and manufacturing of solar energy products

Generate clustering effect -- DuPont is in discussion with the Nano and Advanced Materials Institution in HK for further co-operation

Hong KongHong Kong--ShenzhenBusiness ModelShenzhenBusiness Model

Other Examples – ICT Cluster

Hong KongHong Kong--ShenzhenBusiness ModelShenzhenBusiness Model

Other Examples – Electronics Cluster

Hong KongHong Kong--ShenzhenBusiness ModelShenzhenBusiness Model

Testing & Testing & CertificationCertification檢測及認證檢測及認證

Innovation & Innovation & TechnologyTechnology創新科技創新科技

Environmental Environmental IndustryIndustry環保產業環保產業

Educational Educational ServicesServices教育服務教育服務

Cultural & Cultural & Creative Creative IndustriesIndustries

文化及創意產業文化及創意產業

Medical Medical ServicesServices醫療服務醫療服務

Green Green TechnologyTechnologyBiotechnologyBiotechnology

Precision Precision EngineeringEngineering

Information Information Technology & Technology &

TelecomsTelecomsElectronicsElectronics

HKSTP’s five focused clusters

New economic pillars recommended by the HKSAR Government

Thank youThank you

The End