Policy Address

Innovation and Technology

40.        The Government has been actively promoting the development of innovation and technology. The share of enterprises in Hong Kong's total expenditure on research and development (R&D) steadily increased from less than 30% in 2001 to nearly 50% in 2007. The Government will allocate about $200 million to launch an “R&D Cash Rebate Scheme”, under which enterprises conducting applied R&D projects with the support of the Innovation and Technology Fund or in partnership with local designated research institutions will enjoy a cash rebate equivalent to 10% of their investments. We hope this scheme will inculcate a research culture among enterprises and encourage them to establish long-term partnerships with research institutions. As a result, the R&D capabilities of Hong Kong and the competitiveness of enterprises will be enhanced, and more business and employment opportunities will be created. We will review the effectiveness of the scheme three years after its implementation.

Cultural and Creative Industries

41.        I announced last year the setting up of a dedicated office to expedite the development of creative industries. Create Hong Kong was set up in June this year to co-ordinate the work of different departments. The CreateSmart Initiative launched recently has been warmly received by the industry.

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