Hong Kong: A Global Hub for
Innovation and
Technology
Hong Kong: A Global Hub
for Innovation and
Technology
driven by world-class infrastructure, renowned universities,
and a dynamic start-up ecosystem
driven by world-class infrastructure, renowned universities, and a dynamic start-up ecosystem
The gleaming skyline of Hong Kong is a testament to its long-standing position as a financial hub, sitting at the centre of Asian business affairs and offering a springboard into the vast Mainland China market as well as other countries across the region.
In recent years, the city has also become a global hub for innovation and technology (I&T), helped by world-class infrastructure, top-tier universities and a vibrant start-up ecosystem.
The city has produced various unicorns – tech start-ups valued at more than $1 billion – including artificial intelligence (AI) specialists SenseTime and SmartMore, fintech companies Babel Finance and Micro Connect and on-demand logistics business Lalamove.
In their wake, many more start-ups are emerging, helped by bodies such as the Hong Kong Science & Technology Parks Corporation (HKSTP) and Cyberport, which support thousands of young, innovative companies. According to Invest Hong Kong (InvestHK), the number of start-ups in the city reached a record high of 4,694 last year.
The city's healthy I&T ecosystem is part of the reason the World Intellectual Property Organisation (WIPO) ranks the wider Shenzhen-Hong Kong-Guangzhou region as the second largest science and technology cluster in the world for the fifth consecutive year, behind only Tokyo-Yokohama in Japan.
“Hong Kong serves as a vital gateway to connect Mainland China to the global market. The city plays a unique role as both a super-connector and a super value-adder, facilitating interactions between the Mainland and the rest of the world.”
Prof. Nancy Ip
President of the Hong Kong
University of Science
and
Technology
A GLOBAL
SUPER-CONNECTOR
Hong Kong's strategic position and dynamic role in global trade make it a key player in connecting Mainland China to the world.
“Hong Kong serves as a vital gateway to connect Mainland China to the global market,” says Prof. Nancy Ip, President of the Hong Kong University of Science and Technology (HKUST). “The city plays a unique role as both a super-connector and a super value-adder, facilitating interactions between the Mainland and the rest of the world.
“Hong Kong is a melting pot of global talent, investment, and partnerships. With a strong legal framework and robust intellectual property protections, it provides an ideal environment for fostering innovation and technological advancement,” she adds.
Hong Kong, Shenzhen and Guangzhou are all part of the Greater Bay Area (GBA), which also includes Macao and seven other cities, with a combined population of over 87 million. The links within this region have helped to create a synergistic ecosystem for companies operating in areas such as AI, fintech and clean energy. The opportunities for Hong Kong go beyond being able to tap into Shenzhen's manufacturing strengths or Guangzhou's position in research and development (R&D).
“In fields such as AI and biomedical research, where abundant data and a large population are essential for training large data models and conducting clinical testing, Hong Kong's proximity to the Mainland provides a significant advantage in translating research findings into practical innovations,” says Prof. Ip.
In return, Hong Kong offers companies in the rest of the GBA access to funding and expertise. “As the financial gateway of the GBA, Hong Kong facilitates the flow of capital and talent to enable seamless collaboration across the region,” says Falcon Chan, Strategy, Risk and Transactions Partner at Deloitte China.
Under China's 14th Five-Year Plan, which runs from 2021-25, the GBA has been transformed into an international science and technology innovation centre. The next Five-Year Plan (2026-30) has yet to be announced, but is expected to further boost high quality economic activity.
“As the financial gateway of the GBA, Hong Kong facilitates the flow of capital and talent to enable seamless collaboration across the region.”
Falcon Chan
Strategy, Risk and
Transactions Partner at
Deloitte
China
ACADEMIC
PROWESS
Another important element has been Hong Kong's academic capabilities. The city has five of the top 100 universities in the QS World University Rankings: The University of Hong Kong, Chinese University of Hong Kong, HKUST, City University of Hong Kong and Hong Kong Polytechnic University.
All are heavily engaged in the I&T sector, not least through their involvement in InnoHK research clusters. The first two centres focus on healthcare and AI technologies, with local universities working with leading international institutions, such as Stanford University, University of Oxford, and the Institut Pasteur.
The universities help the I&T sector to grow in other ways too. Prof. Ip points out that HKUST members have founded 1,800 active start-ups, including 10 unicorns, and the university has established the Redbird Innovation Fund, a HK$500 million initiative aimed at creating HK$2 billion in venture investment.
In his 2024 Policy Address, Hong Kong's Chief Executive John Lee said the government had started work on a third InnoHK research cluster, which will focus on advanced manufacturing, materials, energy and sustainable development. As with the first two, the aim is to attract world-class R&D teams to collaborate with local institutions.
The Hong Kong New Industrialisation Development Alliance is also established to promote closer collaboration between the government, industry and academia and foster more I&T co-operation between companies and local universities.
“The city's mid- to long-term development plan for new industrialisation, supported by the Hong Kong New Industrialisation Development Alliance, will drive the development of advanced manufacturing, materials science and sustainable energy solutions,” says Chan.
Hong Kong has also taken significant steps to boost innovation and technology, such as the HK$10 billion I&T Industry-oriented Fund, announced in 2024, which targets sectors like AI, robotics, life sciences, and green energy. This fund aims to channel more capital into key industries, driving growth and development.
To stay ahead, Hong Kong focuses on talent acquisition and retention. The Research Talent Hub under the Innovation and Technology Fund (ITF) supports around 14,200 R&D positions. Additionally, the ITF has subsidised 15,500 STEM students for internships, while the Technology Talent Admission Scheme simplifies visa processes for overseas experts.
“Hong Kong has established itself as a global hub for I&T, driven by its world-class universities, robust research ecosystem, and strategic government policies.”
Dr Eesa Al Bastaki
President of the University
of Dubai
Value of I&T Industry-oriented Fund (2024) focusing on sectors like AI, robotics, life sciences, and green energy
R&D positions supported by the Research Talent Hub under the Innovation and Technology Fund (ITF)
STEM students subsidised for internships by ITF
Value of fund for the Hong Kong AI Research and Development Institute to accelerate R&D and market applications
FOSTERING
INNOVATION
More wide-ranging international collaborations could help to further accelerate and strengthen the city's I&T ecosystem. One person who understands that potential as well as anyone is Dr Eesa Al Bastaki, President of the University of Dubai. He took a sabbatical at HKUST in 2008 while working on research into digital communication systems and now says the city is “an ideal environment for fostering innovation and entrepreneurship”.
“Hong Kong has established itself as a global hub for I&T, driven by its world-class universities, robust research ecosystem, and strategic government policies,” he says.
In his 2024 policy address, Hong Kong's Chief Executive John Lee said the government had started work on a third InnoHK research cluster, which will focus on advanced manufacturing, materials, energy and sustainable development.
“The UAE and Hong Kong, both recognised for their commitment to technological advancement, can support each other in cutting-edge fields such as AI, robotics, medical technology, clean energy, and start-up incubation through strategic partnerships and knowledge exchange,” he adds.
“By fostering cross-border research collaborations, joint innovation centres, and incubator programmes, both regions can accelerate technological breakthroughs while supporting start-ups and entrepreneurs in developing disruptive solutions.”
“Dubai and Hong Kong don't just embrace change, we design it. We've built environments where innovation isn't just encouraged, it's expected. There's a deep-rooted culture of future thinking, scientific collaboration, and entrepreneurship.”
Abdulaziz Al Jaziri
Deputy Chief Executive and
Chief Operating Officer of
the
Dubai Future Foundation
INTERNATIONAL
COLLABORATIONS
Recent contacts have included a high-level delegation from HKUST that visited Abu Dhabi and Dubai in 2024 and held discussions with prominent institutions such as the Dubai Future Foundation, Khalifa University of Science and Technology and Mohamed Bin Zayed University of Artificial Intelligence.
“Dubai and Hong Kong don't just embrace change, we design it,” says Abdulaziz Al Jaziri, Deputy Chief Executive and Chief Operating Officer of the Dubai Future Foundation. “We've built environments where innovation isn't just encouraged, it's expected. There's a deep-rooted culture of future thinking, scientific collaboration, and entrepreneurship that connects us.”
For a super-connector like Hong Kong, cross-border links are natural targets, with benefits flowing in both directions.
In 2023, Chief Executive Lee led a delegation to the UAE, visiting among other things Dubai's iconic Museum of the Future. On the sidelines of that visit, the Dubai Future Foundation signed a memorandum of understanding with Cyberport to encourage tech companies to expand across the two cities.
“Through this collaboration, we're creating a direct bridge between two of the world's most dynamic tech hubs,” says Al Jaziri. “We have been actively exploring ways to bring Hong Kong-based AI start-ups into Dubai's ecosystem. It's not just about market access; it's about giving these companies the platform to scale, test, and grow in a city that is built for the future. This partnership is about creating momentum for the next wave of global tech entrepreneurs.”
For a super-connector like Hong Kong, such cross-border links are natural targets, with benefits flowing in both directions. “Hong Kong's success in building a robust research ecosystem through university-industry collaboration and a strong IP protection framework can provide valuable guidance to the UAE,” adds Al Bastaki.
FUTURE
PROSPECTS
Such interactions and collaborations, alongside Hong Kong's well-established domestic strengths, could help to drive the next wave of innovation and economic growth in Hong Kong. Among the sectors that appear well placed to thrive are areas such as sustainable technology, including green hydrogen, sustainable aviation fuel (SAF) and solar-to-hydrogen facilities.
The low altitude economy of drones and aerial logistics is another promising area, according to Chan. AI and robotics are themselves notable areas of growth. A further frontier technology area lies in medical sciences, genetic engineering and biotechnology.
The low altitude economy of drones and aerial logistics is another promising area, according to Chan, particularly with support from the Hong Kong government's ongoing review of civil aviation legislation and pilot projects under the Low-altitude Economy Regulatory Sandbox. AI and robotics are themselves notable areas of growth, bolstered by Hong Kong's recent commitment to establishing the Hong Kong AI Research and Development Institute with a HK$1 billion fund to accelerate R&D and market applications.
A further frontier technology area lies in medical sciences, genetic engineering and biotechnology. The government's HK$6 billion subsidy programme for the set-up of life and health technology research institutes is expected to catalyse cross-disciplinary collaboration and industry growth.
While the technologies might be new, the dynamics at play fit in with Hong Kong's history and its well-established regional role. According to Chan, Hong Kong is positioned “not only as a hub for innovation but also as a driver of high-quality economic development in Asia”.