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Proposal and Implementation Plan:
Beijing-Guangdong-Hong Kong
      Knowledge Corridor
                           Alan 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
PECC Beijing Conference


                    Zhejiang
                   University
                   Hangzhou



                                    About:
Jinan University Guangzhou
                                                                      NDRC & SIPO Beijing




                                                          Beijing Academy of Science &
  Hong Kong SAR Government Office in Beijing              Technology



  Hong Kong Science &
  Technology Park




Links to Scotland, USA & Europe
                                     EU in HK & Beijing       IPR2 Beijing Office
Meeting with Commission of Science and Technology of
 Municipal Government of Beijing (9 September 2010 in Beijing):




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




                                                  Enterprise Europe Network
                                                  DG Enterprise and Industry, European
                                                  Commission

Tsinghua (China)      Association of University
      AUTM (USA)     Technology Managers (USA)
•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 …
At a philosophical level
Hong Kong’s industrial development
 policy had remained unresolved:
                                                             產
                                                             業
                                                             政
                                                             策
                         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
   Intellectual Capital (unique)              Complementary Business
                                              Assets (differentiated)
    Value Creation         Value Extraction




                                                  Manufacturing Facilities




                                                                             Distribution Capabilities
                            Intellectual




                                                                                                         Sales Force
       Human                Assets                                                                                     $
       Capital                                                                                                         and
       (Free Innovation)      Intellectual
                              Property
                                                                                                                       Jobs




                      Structural Capital (generic)
   Source: © Patrick Sullivan, ICMG
The proposed BJ-GD-HK Knowledge Corridor
Resolves differences and supports SMEs,
 service industries and manufacturing
        industries in Hong Kong
             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
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 2012
    3. “The OECD Innovation Strategy – Getting a Head Start on Tomorrow”, OECD
        2010
    4. “OECD Review of Innovation Strategy – China”, OCED 2008
    5. “OECD Reviews of Regional Innovation, Competitive Regional Clusters – National
        Policy Approach”, OECD, 2007
    6. “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

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2012 Beijing-Guangdong-Hong Kong Knowledge Corridor (6 Nov 2012)

  • 1. Proposal and Implementation Plan: Beijing-Guangdong-Hong Kong Knowledge Corridor Alan 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
  • 2. PECC Beijing Conference Zhejiang University Hangzhou About: Jinan University Guangzhou NDRC & SIPO Beijing Beijing Academy of Science & Hong Kong SAR Government Office in Beijing Technology Hong Kong Science & Technology Park Links to Scotland, USA & Europe EU in HK & Beijing IPR2 Beijing Office
  • 3. Meeting with Commission of Science and Technology of Municipal Government of Beijing (9 September 2010 in Beijing): Chen Hongshen 陈宏生 Zhu Shilong 朱世龙 Samson Tam 譚偉豪
  • 4. 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) Enterprise Europe Network DG Enterprise and Industry, European Commission Tsinghua (China) Association of University AUTM (USA) Technology Managers (USA)
  • 5. •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))
  • 6. Silicon Valley has a solid industrial base: R&D, strong manufacturing capacity, creativity and presence of grateful entrepreneurs …
  • 7. At a philosophical level Hong Kong’s industrial development policy had remained unresolved: 產 業 政 策 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”?
  • 8. 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.
  • 9. 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.
  • 10. 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.
  • 11. 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.
  • 12. The proposed BJ-GD-HK Knowledge Corridor: A strategic move from IP Protection alone to making money from R&D and IP Rights Intellectual Capital (unique) Complementary Business Assets (differentiated) Value Creation Value Extraction Manufacturing Facilities Distribution Capabilities Intellectual Sales Force Human Assets $ Capital and (Free Innovation) Intellectual Property Jobs Structural Capital (generic) Source: © Patrick Sullivan, ICMG
  • 13. The proposed BJ-GD-HK Knowledge Corridor Resolves differences and supports SMEs, service industries and manufacturing industries in Hong Kong 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.
  • 14. The proposed BJ-GD-HK Knowledge Corridor Combines high-level strategies and the know-how and know-who to make things happen
  • 15. 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!
  • 16. 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 2012 3. “The OECD Innovation Strategy – Getting a Head Start on Tomorrow”, OECD 2010 4. “OECD Review of Innovation Strategy – China”, OCED 2008 5. “OECD Reviews of Regional Innovation, Competitive Regional Clusters – National Policy Approach”, OECD, 2007 6. “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