HK to ink deal with local tech unicorn to bolster I&T ecology

Hong Kong Investment Corporation (HKIC), a government-owned investment agency will ink deal with a local "tech unicorn", a start-up company worth more than US$1 billion.

While the name of the company is not revealed, Paul Chan, finance secretary of Hong Kong, said on his weekly blog on Sunday that the "tech unicorn" focuses on artificial intelligence and smart manufacturing.

This deal aims to expand research and development (R&D) investment, local talent training, promote deeper implementation of AI models in the Greater Bay Area, and accelerate digital transformation in the region, Chan said. 

Despite scattered applications of AI in the industrial fields, Chan said AI’s efficiency and standardisation system will allow technology to be quickly adjusted to match various industries. Furthermore, the “AI labours” will undertake repetitive works and provide high-precision manufacturing and high-volume production capabilities.

As the number of partnerships increases, Chan said the number of technology companies rooted in Hong Kong will also increase, and thus Hong Kong’s innovation and technology sector will be thriving.

In recent years, innovation and technology have been one of the core pillars of the Hong Kong government. The authority has invested heavily in the sector and wished technology companies to reach “unicorn” scale and thus encourage young people to start their own businesses. Between 2017 and 2021, the government invested more than HK$130 bn to support the development of I&T in Hong Kong.

According to InvestHK's 2023 Start-up Survey, the number of start-ups in Hong Kong last year has reached 4257, a year-on-year increase of about 7%, of which about 20% of the founders were from Europe and the United States.

Biotechnology, artificial intelligence (AI), smart city and financial technologies (fintech) have been identified as the four key areas for Hong Kong’s innovation and technology (I&T) industry.

Don't miss: Around 30 enterprises to invest HK$30bn in HK to 'spur city's rise' as I&T centre

Back in October 2023, around 30 overseas and mainland Chinese companies pledged to invest about HK$30 billion in Hong Kong, which looks to provide 10,000 jobs in the city in the coming few years, including scientific research and management positions.

20 of the 30 companies that have already set up or will expand their businesses in Hong Kong, signed an agreement with the newly established Office for Attracting Strategic Enterprises (OASES) of Hong Kong. The city's leader John Lee said at the launch ceremony that the strategic enterprise partners would help spur Hong Kong's rise as an innovation and technology centre. 

Related articles:

HK leader John Lee vows to 'snatch' global talents by strengthening innovation and tech
Survey: Over 80% of big enterprise leaders optimistic about HK talent landscape
Next up, AI gatekeepers. Brands’ next big hurdle to reaching consumers