Higher Education, Innovation and Technology - Changing Dynamics of Hong Kong

1. Higher Education, Innovation and Technology - Changing Dynamics of Hong Kong Prof Tony Chan, PresidentThe Hong Kong University of Science and Technology 12 April 2016 1

2. Table of Content • Innovation and Entrepreneurship Ecosystem Drives Social and Economic Development • Higher Education Drives Innovation and Technology • Case Study: Hong Kong • HKUST – Innovation and Entrepreneurship Nurturing • Conclusion

3. I. Innovation and Entrepreneurship Ecosystem Drives Social and Economic Development Magnet for Talent • Increasing mobility brought about by globalization and digitalization • Talent concentration: innovation hub synergizing local competitive edges with globalization • Government’s effort in shaping the society and economy by reframing city into center of innovative industries, and attracting talent • Self-contained ecosystem involving different stakeholders for fostering economic development via innovation, technology, entrepreneurship and education, e.g. • Silicon Alley, New York • Boston, U.S. • Innopolis, Russia • Silicon Wadi, Israel • Hong Kong Silicon Alley Boston Innopolis Silicon Wadi Hong Kong

4. I. Innovation and Entrepreneurship Ecosystem Drives Social and Economic Development Hong Kong – Innovation Hub for Pearl River Delta and China: • HKUST – The first Hong Kong government initiative on innovation and technology • Government Initiatives • Recent Major Investments: • Injected US$250M to encourage mid-stream applied research projects in universities • Set up a US$250M Innovation and Technology Venture Fund • Earmarked US$64M to set up Innovation and Technology Fund for Better Living • Smart City: US$1B smart production & research hub at Tseung Kwan O • Re-industrialization: promoting smart production and high value-added technology industries • New Economic Order • Development powered by “One Belt, One Road”: investment on all fronts from energy, transport infrastructure, technology, finance and real estate, hitting a total of US$200B by the end of 2018

5. II. Higher Education Drives Innovation and Technology Critical Success Factors / Challenges • Talent • Top universities to nurture talents and generate innovative ideas • International environment to draw global talents and families • Research with strategic importance and focus • Scientific research efforts in universities (blue sky research vs commercialization) • S&T aligned with national objectives • Innovative Environment / Ecosystem responsive to opportunities • Free market / Strategic location • Open society, free flow of information, IPR protection, mature legal system, efficient infrastructure • Government support: Dedicated ministry, policies / priorities, funding, attracting talent • Research grants / private funding / venture capital • Cross-country / Cross-disciplinary Collaborations • Regional & global partnerships (e.g. universities, research institutions, funding agencies) • Popularity of consortia / partnerships • Globalization and digitalization • Working with Industry • Industry support: R&D funding, expertise, inspiration • Culture • Advancing culture of research / innovation

6. III. Case Study: Hong Kong Established on a Solid Foundation Hong Kong - Unique Strategic Position in China • “World’s freest economy ” (Index of Economics Freedom 2013) • “One Country; Two Systems” • Separate governance systems, e.g. legal, tax, immigration, education, etc. World-class University System • Academic freedom is guaranteed • Western academic system and embedded Chinese culture • Competitive salary level • Access to China’s abundant academic and research resources • University Grants Committee (UGC) established by government in 1965, to drive global standard operation, is led by a board of elites from business & higher education: e.g. Stanford, Cambridge, Oxford & NSW, etc. • Research Endowment Fund (REF): US$3B generates investment income of US$145M/year for support of basic academic research • Full range of university: liberal arts college, poly-tech and professional schools and research-intensive universities • Tertiary policy and wide autonomy: stability in funding and policy 6

7. III. Case Study: Hong Kong Globally Recognized Universities in Hong Kong

8. III. Case Study: Hong Kong Pursuing a Broader Base for Hong Kong’s Economic Growth • Innovation and Technology was designated one of the six pillar industries since 2009 • HK ranks 2nd in Asia-Pacific for innovation and 11th among 141 economies worldwide (Global Innovation Index 2015); ranks 5th globally for growth of start-up ecosystem • Government Support • The new Innovation and Technology Bureau (ITB) • Innovation and Technology Commission (ITC) • Innovation and Technology Fund (ITF) • Technology Start-up Support Scheme for Universities (TSSSU) • University-Industry Collaboration Programme • InvestHK • Excellent Infrastructure: HK Science Park/ HK Cyberport • Hong Kong Applied Science and Technology Research Institute (ASTRI) • Establishment of the Academy of Sciences of Hong Kong • Strategic Global Partnership • MIT Innovation Node (MIT’s first overseas innovation node) • Karolinska Institutet China-Hong Kong Regenerative Medicine Centre • Access to Mainland R&D funding and market • 973 Program, 863 Program, Peacock Project • 16 Partner State Key Labs • Hotbed of startup activity: Co-working spaces operating from 40+ locations; > 1,500 start-ups as of Aug 2015 (up 50% from 2014) • Cross-Border Cooperation: The Guangdong-HK Technology Cooperation Funding Scheme and the Shenzhen-HK Innovation Circle • Competitive Edges of HK • International talent • Low tax (personal & company) • IP protection • Close to market • Part of PRD

9. III. Case Study: Hong Kong Capitalizing Opportunities in China • Close to Shenzhen  China’s Silicon Valley / City of Innovators • Industry driven activities: Communications giant leading future 5G development: Pre5G concept (ZTE), world's first 5G test bed collaboration (Huawei) Huawei: • Noah’s Ark Lab in HK Science Park • Huawei-HKUST Innovation Laboratory DJI: World’s biggest consumer drone by revenue • Set up an R&D team in HK Science Park in 2015, to support the growth of its international business • BGI: Collaboration on ‘Google Genomics’ creates global impact • Set up BGI-HK Co Ltd • Invest > USD 64.5 mil for lab in HK DJI & BGI:Global Growth Companies Honourees 2015 by WEF 4 billion users KuangChi (headquartered in SZ, listed in HK): • Disruptive novel space technology. “Near Space Ship” 20-100km above sea level for global wi-fi access, resources mapping, disaster relief BYD Auto Co., Ltd.: largest selling Chinese brand Mindray Medical Int’l Ltd: China's largest medical equipment manufacturer

10. IV. HKUST – Innovation and Entrepreneurship Nurturing • Strategic focus of HKUST • Entrepreneurial and innovative thinking is being cherished • Recently created Associate Vice-President for Knowledge Transfer • Entrepreneurship Center: HK$1M Entrepreneurship Competition, the BASE • R&D Corporation (1992): business arm of HKUST for commercialization of technologies it develops • Technology Transfer: #61 globally in US utility patents granted (34 granted) in 2014 • Undergraduate Minor Program in Entrepreneurship • HKUST-MIT Research Alliance Consortium - R&D collaboration • Research clusters • IoT in Intelligent Buildings and Transportation • Data Science & E-Learning Research • US$200K from sponsoring companies/year on each cluster matched 9:1 by ITC • Sponsoring companies: Intel, Texas Instruments, NTT, etc. • HKUST-Berkeley-X Alliance for Robotics, Machine Intelligence & X-tronics • Spin-off Companies from HKUST (Perception Digital Holdings Ltd, Googol Technology (HK) Ltd, Advanced Photoelectronic Technology Ltd) • Working with industry (e.g. GSK R&D China-HKUST Neuroscience Laboratory) • MOOC • HKUST Alumni DJI Innovation • Advanced Manufacturing • Biomedical Systems 10

11. V. Conclusion Global Financial Centers Spurring with Innovation and Technology: • Cluster of talents (universities, S&T, industry) with government support and foreign investments • With strategic focus • Advanced economies: robust regulatory framework; conducive environment for startups; and opportunities for geographical rejuvenation Successful examples • New York City • Named #1 in the world for Technology, Innovation and Entrepreneurship in 2015 • Hosted 300,000 employees in the tech sector • First-ever Chief Technology Officer (CTO); the new “Smart City, Equitable City” strategy • Silicon Alley: with rapidly growing venture capital investments; Cornell Tech • NYC Tech Talent Pipeline; Digital.NYC (online hub for regional innovation ecosystem) • London • The “digital powerhouse” with US$17B into economy in the next ten years. Growing at a faster rate than the Silicon Valley • Around 90 overseas tech companies located to London (Linkedin, Solocal) • Tech City UK (first launched in Shoreditch in London in 2010) – In 2015/2016, received funding of US$3M to provide support to digital business community • Tech and Information Sector driving 30% of job growth in London since 2009 • Zurich • Rated #2 in knowledge creation in one of the element in Global Innovation Index • Political stability; government support: FinTech Center to promote Finance Technology • US$21,914M FDI inward flow in 2014 • Swiss Innovation Park focused on innovative Biotechnology and Engineering research (100% sponsored by private sectors) • Singapore • USD14B to develop a “knowledge based, innovation driven and future-ready economy” • Technology incubation scheme (investing 85% of capital in select startups) • Encourage public-private partnerships through funding and industry led consortium

12. V. Conclusion Global Financial Centers Spurring with Innovation and Technology: • Hong Kong – A financial center which has all the elements needed to lead the way for innovation and technology in China • Melting pot of talent • Unique strategic location: The gateway to China • Operating under “One Country; Two Systems” • Bursting with opportunities: Government S&T initiatives; “One Belt, One Road” The prospect of Hong Kong’s development in innovation and technology is promising

13. Thank You! 13