Some Contemporary Economic Concerns of Hong Kong
Maslow’s Theory of Human Needs Physiological Needs Safety Needs Belonging and Love Needs Esteem Needs Self- Actualization Needs
Human Needs: Maslow’s Theory <ul><li>Physiological needs, Safety needs, Belonging and love needs, Esteem needs, and Needs for self-actualization. </li></ul><ul><li>Esteem needs prompt users to move to new products quickly - you buy a new shirt you like even if you already have too many shirts. </li></ul><ul><li>Modern customers are demanding more product variety and more innovative products. </li></ul>
Is Hong Kong hollowing out ? Or, Is there an industrial transformation?
Transformation: Mfg Moves to the Mainland To Lower Costs <ul><li>Over 4M workers in the mainland </li></ul><ul><li>1995: HK exports to mainland up by 20% </li></ul><ul><li>1995: 71% of domestic exports and 40% of re-exports attributed to outward processing activities in the mainland </li></ul><ul><li>1995: 74% of imports and 82% re-exports of mainland origin </li></ul>
A quote from the second report (1999) of HKSAR Chief Executive’s Commission on Innovation and Technology “ There is strong competition [to HKSAR] from neighboring economies for Hong Kong’s regional role in trade, finance, transportation and communications. With respect to manufacturing, Hong Kong must strive to support and further develop high-value activities. Hong Kong is also facing stiff competition from low-cost economies. A fundamental challenge is how Hong Kong should position itself in the knowledge-based, global economy of the 21st century.”
P roductivity Q uality I nnovation Industrial Progress
Innovation is not easy Although innovation is increasingly seen as a powerful way of obtaining competitive advantage and more secure approach to defending strategic positions, success is not guaranteed. After all, innovation is by its nature a risky business. And we need to remember that there is a great deal of uncertainty in innovation, made up of technical, market, social, political and other factors.
Innovation is essential Because the innovation process is so uncertain, it sounds that it is forgivable for many organizations to decide not to innovate. But, the approach of doing nothing is rarely an option, especially in the rapid change of the technology and the economics.
We have no option but to learn to manage innovation So the question is not one of whether or not to innovate but rather of how to do so successfully. What lessons can we learn from research and experience, and is there any pattern to these which might be used to guide actions?