Presentation made on 6 November 2012 at the "Beijing-Hong Kong Technology Cooperation and Investment Seminar" hosted by the Hong Kong Trade Development Council

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