Joseph Chan, Chairman of the Hong Kong Productivity Council: New industrialization empowers Hong Kong's high-quality development

Chan Cho-hang (Chairman, Hong Kong Productivity Council) / Text

On the occasion of the beginning of the new year, I wish all readers of the National Business Daily progress and all the best in the new year!

The year 2024 is a crucial year for the mainland to build itself into a great modern socialist country in an all-round way, and it is also an important year for Hong Kong to thoroughly implement the Outline Development Plan for the Guangdong-Hong Kong-Macao Greater Bay Area and the Development Plan for the Shenzhen Park of the Shenzhen-Hong Kong Science and Technology Innovation Co-operation Zone in the Loop.

Standing at a new starting point in the new era, Hong Kong is seizing new opportunities and opening up a new pattern. The country attaches great importance to and vigorously supports Hong Kong's I&T development, and cooperating with Hong Kong to promote international I&T is in line with the global layout and development trend of I&T, which is necessary for the country to accelerate the implementation of the innovation-driven development strategy and for the Guangdong-Hong Kong-Macao Greater Bay Area to build an international I&T hub with global influence. Both the key strategies outlined in the Hong Kong Innovation and Technology Development Blueprint and the corresponding 2023 Policy Address of the Chief Executive of the Hong Kong Special Administrative Region clearly demonstrate that the Hong Kong Special Administrative Region (HKSAR) will continue to make efforts in strengthening top-level design, industrial layout, infrastructure, funding schemes, and I&T talent pool, making I&T an important engine for activating Hong Kong's high-quality economic development and forming new quality productivity.

The Hong Kong Productivity Council (HKPC) is a statutory body established in Hong Kong in 1967, as an important component of Hong Kong's innovation and technology system, one of the core promoters of cultivating new productivity and realizing new industrialization in Hong Kong and other cities in the Guangdong-Hong Kong-Macao Greater Bay Area, and one of the largest and most powerful applied R&D institutions in Hong Kong.

Chan pointed out that in 2024, HKPC will fully support the HKSAR Government to give full play to Hong Kong's advantages in internationalisation and introduce global high-quality innovation resources. The picture shows Chen Zuheng Courtesy of the interviewee

In the new year, HKPC will celebrate its 57th anniversary, embarking on an important new journey, and will fully support the overall development direction, key plans and major strategies of the country, and uphold the spirit of "dare to take responsibility and do good work", and provide new industrialization, intelligent manufacturing, digital transformation, cyber security, green and smart living, future skills, funding schemes, With world-class advanced technology and innovative services, we provide customized technology solutions for enterprises, support enterprises to improve their productivity, help them move towards high-end, intelligent and green, and promote new industrialization.

Build an international innovation and technology hub at full speed and contribute to the development of the country

In the new year, HKPC will actively cooperate with the HKSAR Government to promote new industrialisation in the following four directions, build Hong Kong into an international innovation and technology hub and smart city at full speed, and promote Hong Kong to better integrate into the overall development of the country, the Guangdong-Hong Kong-Macao Greater Bay Area and the Belt and Road Initiative, and move towards a new journey of high-quality development.

1. To help enterprises grasp the development opportunities in Hong Kong, the Greater Bay Area and the country with advanced technology, future talent training and government funding

The country attaches great importance to and vigorously supports the development of Hong Kong's I&T industry. The Development Plan for the Shenzhen Park of the Shenzhen-Hong Kong Science and Technology Innovation Co-operation Zone in the Loop, promulgated in 2023, makes comprehensive arrangements for the planning and construction of the Shenzhen Park, especially the coordinated development with the Hong Kong Park, and sets out two major development goals, namely the basic establishment of an efficient Shenzhen-Hong Kong Science and Technology Innovation Synergy Mechanism by 2025, and the development of a world-class scientific research hub by 2035. At the same time, four main tasks are proposed, including building a world-class scientific and technological innovation platform, building an internationally competitive industrial pilot transformation base, building an international scientific and technological innovation system and mechanism, and building a scientific and technological cooperation platform that gathers global wisdom. The development of the Loop will strongly support the planning and construction of Hong Kong's "Northern Metropolis" and will become a major node for Hong Kong's integration into the overall development of the country.

Deeply encouraged, HKPC will fully support the framework of the major co-operation platform system in the Guangdong-Hong Kong-Macao Greater Bay Area to support the industrial layout of the Hong Kong Park in the Loop in three aspects:

The first is to provide all-round, professional and international standard production service support. Over the past decade, HKPC has assisted the industry in promoting more than 1,200 smart projects in the Greater Bay Area, of which about 70% of the projects have been implemented in the Mainland and the remaining 30% in Hong Kong. The projects implemented in the mainland are mainly in Dongguan and Shenzhen, covering industries such as electronics, jewellery, food, textiles, toys, life and health, home appliances, molds, plastics, metals, construction, clocks and watches, printing, auto parts and other industries. HKPC will leverage its world-leading R&D capabilities and rich experience in connecting Hong Kong, the Mainland and international I&T and industrial resources to accelerate the industrial development of Hong Kong parks. In addition, HKPC is equipped with professionally accredited laboratories and state-of-the-art equipment to provide industry-trusted testing services covering environmental, electronics, industrial materials and digital capabilities, as well as ESG and carbon emission certification services, which will well meet the needs of enterprises in the Loop. At the same time, HKPC will also introduce the national "Intelligent Manufacturing Capability Maturity Assessment Method" (including smart factory, smart workshop, specialization, special innovation, etc.), Germany's "Industry 4.0" maturity certification, and "lighthouse factory" and other intelligent maturity definitions and standards, so that the industry can more easily understand or assess the current maturity level of the industry, help the enterprises settled in the park to obtain relevant certifications and become industry benchmarks, and also promote the Hetao Cooperation Zone to become a demonstration place for the docking of international and national standards.

The second is to promote the smooth flow of people, logistics and data in the park, build a test field for institutional and policy innovation, and accelerate the implementation and commercialization of technology. As the chairman unit of the "Guangdong-Hong Kong-Macao Greater Bay Area Productivity Promotion Service Alliance", HKPC has taken the lead in establishing a platform for the docking of scientific and technological achievements. In addition, HKPC also actively cooperates with the Shenzhen/District Government to develop advanced manufacturing, build demonstration production lines, promote the digital transformation and upgrading of enterprises, promote the realization of advanced intelligent manufacturing of enterprises, and actively participate in the construction of the regional linkage pattern of Hetao Cooperation Zone + Guangming Science City. HKPC will also actively strive to expand the cross-border transfer of Mainland R&D data to the Hong Kong Park in the Loop for use by enterprises in the Loop, subject to compliance with national data security laws and regulations and controllable risks. To make the Loop a "data special zone" and a "new Silicon Valley" for the research and development of artificial intelligence (AI) technology products or solutions, and to promote the development of Hong Kong into an "international hub for the development of AI and data industries".

The third is to strengthen future skills training, support the demand for high-tech and multi-skilled talents from enterprises in the park, and build an international innovative talent port for the Greater Bay Area. HKPC has been actively encouraging Hong Kong's tertiary institutions, research institutes and vocational training councils to combine their respective strengths to strengthen future skills training. In line with market trends, HKPC Academy under HKPC currently offers the "FutureSkills" training course and more than 150 NITTP-accredited training programmes in the areas of AI and data management, cyber security, cloud technology, smart logistics, digital and management skills, etc. In 2024, HKPC is preparing a dedicated training on new industrialisation to enhance the knowledge system and competence of engineers and technicians. In the future, HKPC will provide more high-tech and innovative talents for the development of the Park, expand the I&T talent pool, enhance the competitiveness of enterprises, meet the demand for high-tech talents from enterprises in Hong Kong, the Greater Bay Area and the Mainland, and adapt to the new era of industrialisation.

In order to raise the awareness of the industry and the public, the New Industrialization Development Centre (NDDC) was also established in Hong Kong in 2023 to provide enterprises with the most suitable I&T solutions and expand the talent pool of new industrialisation to meet the needs of the industry. On 8 January 2024, HKPC will organise the "Hong Kong Owned Industries" Key Partners Kick-off Kick-off Meeting, which aims to promote collaboration among various industries, leverage their strengths in new industrialisation and productivity enhancement, and showcase relevant achievements. At the same time, the New Industrialization Science and Technology Museum will be unveiled in the first quarter, hoping to enhance the public's understanding of new industrialization, especially young people, through the sharing of practical cases, and lead the industry in the Greater Bay Area to upgrade and transform with innovation and technology, and drive new economic growth points.

2. Strengthen Hong Kong's international advantages, pool global innovation resources, deepen cooperation with the Mainland, and build high-quality Belt and Road cooperation

Hong Kong has the unique advantage of "relying on the motherland and connecting with the world" under the "one country, two systems" principle, and has become a participant, promoter and beneficiary of the Belt and Road Initiative. HKPC has been fully committed to assisting Hong Kong to play its role as a "super connector" and "super value-added person". In the future, it will help the "introduction" of advanced technology and overseas capital from three aspects, and at the same time strengthen the brand advantage of "Made in Hong Kong", lead enterprises to "go global" and explore domestic and overseas markets.

First, it is necessary to strengthen scientific and technological cooperation with domestic and foreign countries and accelerate the formation of new quality productive forces. HKPC is connected to top international I&T resources, including MIT in the US, Fraunhofer Institute for Production Technology in Germany, RWTH RWTH RWTH in Germany, etc. As early as 2015, HKPC introduced the German "Industry 4.0" maturity standard. HKPC and Fraunhofer IPT jointly established the INC Invention Centre (The Hatch) in Hong Kong, and collaborated to promote Industry 4.0 in the Greater Bay Area, jointly formulating the "i4.0 Maturity and Recognition Plan" to support various industries to gradually move towards Industry 4.0, and in 2024, the two parties will further deepen the cooperation in promoting the application of "Industry 4.0", advanced manufacturing technologies and related technology transfer, and radiate and drive the Greater Bay Area, Other cities in the mainland and different industries in the Belt and Road countries and regions are moving towards high-end, intelligent and green development, and developing new industrialization. MIT Hong Kong Innovation Node has been established at HKPC to strengthen the research ties between the two places. As one of the flagship I&T projects AIR@InnoHK in Hong Kong, HKPC is the sole founding arm of the Hong Kong Industrial Artificial Intelligence and Robotics R&D Centre, which is jointly operated with RWTH RWTH Aachen University in Germany, focusing on the development of industrial artificial intelligence, robotics and commercialisation, combining the advantages of technical expertise, networking and innovative R&D to assist enterprises in the application of AI.

The second is to help the "Belt and Road" rush to the next golden decade. In 2024, HKPC will fully support the HKSAR Government to give full play to Hong Kong's advantages in internationalisation, introduce global high-quality innovation resources, strengthen cooperation with universities, scientific research institutions and business associations in Belt and Road countries and regions, organise more green training courses and more enterprises to visit the Belt and Road markets, participate in exhibitions, seminars and business matching, promote Hong Kong's advantages and opportunities in the Greater Bay Area, and contribute to high-quality co-construction.

Third, we will deepen the synergy between I&T and industrial policies in Hong Kong and Mainland cities, and use innovation and technology to drive the development of new industrialization. HKPC actively participates in major national R&D projects, including the successful application of the Ministry of Science and Technology's "14th Five-Year Plan" Key Technology R&D Program - Key Technology Areas of Circular Economy with well-known universities and research institutions in the Mainland, and the Mainland-Hong Kong Joint Funding Scheme (a major project of the Ministry of Science and Technology) in collaboration with leading enterprises in the Mainland, etc., to promote the development advantages of I&T industries in the Greater Bay Area, Beijing-Tianjin-Hebei and Yangtze River Delta regions, and promote the development of key core technologies. HKPC is cooperating with the Yangtze River Delta National Technology Innovation Centre in areas such as technology R&D and implementation, R&D talent training, etc., to strengthen collaboration between the Yangtze River Delta and the Greater Bay Area, and promote the development of industries such as smart manufacturing, new materials, artificial intelligence and robotics, industrial metaverse, cybersecurity, green technology and smart mobility. At the same time, HKPC is also collaborating with the China Institute of Electronic Information Industry Development (CCID Research Institute) to align with the definitions and standards of German Industry 4.0 and the national new industrialisation system, so that it is easier for the industry to understand or assess the current maturity level of the industry, so as to help various industries (or enterprises) move towards high-end, intelligent and green, help them upgrade their technology and take the lead in becoming the world's most advanced new manufacturing enterprises, and accelerate the development of new industrialization in the Greater Bay Area.

In the context of the development of the Guangdong-Hong Kong-Macao Greater Bay Area, relying on the advantages of the Mainland's complete industrial chain and huge market, and building consensus through the blueprint for innovation and technology in the Greater Bay Area, HKPC will actively work with Mainland cities to strengthen innovation synergy with more industry, academia and research partners at home and abroad, and strive to build a global innovation and technology highland.

3. Promote green and sustainable development in parallel with each other

HKPC will make every effort to encourage the HKSAR Government to support the upgrading and transformation of traditional industries, develop and expand strategic emerging industries, and lay out future industries. HKPC is committed to advocating a "dual-track approach", i.e. on the one hand, using advanced technology to help revitalize traditional industries and inject new momentum, and on the other hand, providing appropriate support for the development of emerging strategic industries such as innovation and technology, cultural creativity, traditional Chinese medicine, new energy transportation, etc., integrating new industrialisation elements in an all-round way, vigorously strengthening cooperation with universities, scientific research institutions and business associations at home and abroad, organising more green training courses for the industry, and promoting new industrialisation with the concept of green, low-carbon and sustainable development.

In 2023, the Automotive Platforms and R&D Centre (APAS) released Hong Kong's first "Report on the Development of Hong Kong's Hydrogen Economy and Survey Results" to help the HKSAR Government formulate a long-term strategy for the use of hydrogen energy in land transport and promote hydrogen energy development, so as to achieve Hong Kong's goal of achieving carbon neutrality before 2050.

Fourth, support youth development, expand the talent pool of innovation and technology and new industries, and provide more high-quality upstream opportunities

The Chief Executive of the Hong Kong Special Administrative Region (HKSAR) announced in his 2023 Policy Address the establishment of the Talent Services Office (TSO) to align with the general direction of Hong Kong's future development of innovation and technology. Looking ahead, Hong Kong needs to nurture diverse talents across industries to seize the opportunities in the digital era as it promotes the integrated development of industry-university-research innovation. HKPC recognises the importance of nurturing future talents, and strongly supports the development of all age groups through the "Future Skills" training programme and STEM (Science, Technology, Engineering and Mathematics) education. HKPC also actively provides training courses such as ABCD&R (AI, Blockchain, Cloud, Big Data & Robotics) for the academia and industrial and commercial sectors to build and strengthen the I&T talent pool and create upstream opportunities for young people.

In 2023, HKPC organised about 1,000 "FutureSkills" training courses to enhance the overall I&T atmosphere in society. In 2023, the first "Youth Aerospace Science Popularization Programme" was successfully held, and 130 Hong Kong students enhanced their knowledge of the latest aerospace technology and space science through a series of training courses, contributing to the country's nurturing of future talents in the field of aerospace science and technology. In the future, HKPC Academy will provide more I&T exchange programmes and courses for young people to gain a deeper understanding of the country's technological achievements and the development speed of the Greater Bay Area, and to enhance the sense of homeland and country among young people in Hong Kong.

I&T potential leads intelligent manufacturing and new industrialization empowers development

Artificial intelligence (AI) is a major trend in global development, and the 2023 Policy Address encourages the active use of AI, and lists "AI and data science" as one of the three new industrial development industries.

In November 2023, HKPC announced the first "Study on the Development of Hong Kong's Artificial Intelligence Industry", which provides three core and nine recommendations to promote Hong Kong's development as an "international AI and data industry development hub". HKPC has strong AI application and R&D capabilities, and has achieved remarkable results in promoting the development of the AI industry. After years of hard work, FLAIR has successfully developed the "Tiangong Kaiwu: Industrial AI Application Platform", which allows industry players to access and use data in related fields through data storage, model storage and code generation functions, and assist in training, development and practice of AI applications.

In order to accelerate the development of new industrialisation and digital economy, Celesphere, Hong Kong's first industrial metaverse-themed research and development hall, was set up at HKPC in 2023 to showcase various industrial metaverse application technology solutions and explore the practical application of the metaverse at the industrial level from the perspectives of different industries. HKPC also successfully organised a number of exciting events to bring together industry elites and academics from home and abroad to actively promote industry exchanges, including the International Conference on "Empowering Industries with Extended Reality (XR) Technology to Move Smart and Digitalised", the Guangdong-Hong Kong-Macao Greater Bay Area International AI and Robotics Summit, and the Partner Sharing Session organised by the Hong Kong Industrial Artificial Intelligence and Robotics R&D Centre.

In the process of supporting enterprises in upgrading and transformation, HKPC not only meets customer needs and helps enterprises upgrade their technology, but also promotes enterprises to think about how to create more value for customers through intelligent manufacturing and realize the innovation of business development models. HKPC provides "one-stop" comprehensive technical support, from feasibility study, factory layout, production process and intelligent production line design, equipment installation and integration, testing and commissioning, to matching government funding schemes and training of R&D talents, to enhance the profitability and market competitiveness of enterprises, and help enterprises transform from OEM (independent processing) and ODM (independent design) to OBM (independent brand), and move towards the goal of building a "lighthouse factory".

"What the country needs, what Hong Kong is good at" will form more new and vivid practices in the field of new industrialization. Integration into the country's new industrialisation process will certainly bring unprecedented development opportunities to Hong Kong.

HKPC will continue to take "Innovation, Never Stop" as its mission, give full play to Hong Kong's role as a bridge that "supports the motherland and connects with the world", actively participates in the new development pattern of "dual circulation", and "brings in" international I&T resources, talents and high-tech enterprises to promote the development of the Greater Bay Area, while helping more enterprises to "go global" to explore markets, facilitate the convenient cross-border flow of innovation elements between Hong Kong and the Mainland, promote the integration of innovation systems between Hong Kong and the Mainland, make new contributions to the realization of Chinese-style modernization, and lead the world to see a smart future.

National Business Daily