Knowledge-based economy cannot be empty talk

(The original was written in Chinese and appeared in Hong Kong Economic Journal on Friday, 3 September 2010.)

In the Chief Executive Donald Tsang's policy address last year, he proposed Hong Kong should move towards a high value-added knowledge-based economy. He also pointed out that "innovation" and "knowledge-based industries" are not limited to the Six New Pillar Industries (Testing and Certification, Medical Services, Innovation and technology, Culture and Creative Industries, Environmental Industry and Education Services), the Four Traditional Pillar Industries (Trade & Logistics, Financial Services, Professional Services & Other producers Services, Tourism) are also included. The problem is, vertical industry-based development model tends to be fragmented; only horizontal industry support structure that captures the synergistic effect between the industry is a true Knowledge-based Economy development strategy.

Mainland's "Going Out" Strategy is a double-edged sword for Hong Kong
In his Budget Speech this year, Financial Secretary John Tsang further proposed that Hong Kong could support the national development strategy by moving towards a knowledge-based and high value-added economy. Mainland's "Reform and Opening Policy of thirty years now encourages companies to adopt a "Going Out" strategy (internationalise). However, this national policy of many years has not yet been successful because mainland's industrialisation that is based on a "World Factory" production strategy; and a significant proportion of the locally originated high value-added products often failed to meet international intellectual property standards, which are complex in their nature. Hong Kong, with its developed legal system, international networks and business experience, is in an ideal position to help the mainland in solving this complex problem. There ought to be plenty of room for Hong Kong to move towards this development direction. However, the real situation is moving towards the opposite direction. In recent years, mainland companies are gradually reducing the dependence on Hong Kong, the number of mainland regional headquarters and regional offices have declined, from 267 in June 2005 to 223 in June 2009, a decline of more than 16 percent.

Excellent business environment has always been one of the sustainable development strategies of Hong Kong's economic development. Hong Kong's excellent "First-level Business Conditions" alone (e.g. a sound legal system, open social environment, comprehensive and developed administrative system) cannot overcome Hong Kong limitations of its traditional "middleman" role. As the Mainland gains more frequent and direct contacts with international companies and the outside world, Hong Kong must create new competitive advantages for itself or risks the fate being marginalised.

Knowledge-based economy ─ the only way for sustainable economic development
To this end, Hong Kong needs to further improve the "Second-level Business Conditions", including the development of quality human resources, improve the diversity of producer services, creating a favorable environment for innovation through supportive public policies and so on. So that the cumulative research capability and high value-added, high knowledge content and other intangible inputs could create added values. Public policies could then further encourage businesses to use these "soft technology support" to create economic value and gradually expand the scales and depth of a Knowledge-based Economy in Hong Kong. On the other hand, the lack of a mature legal environment in the Mainland, a short tradition of the rule of law, as well as mainland enterprises finding it difficult to establish international brands and "Self-initiated Intellectual Property" on their own ought to be seen as an opportunity for Hong Kong. Hong Kong has a free and open environment conducive to the development of knowledge-based economy. Hong Kong will also be able to find an important role to play in the development of the Knowledge-based Economy of Mainland China.

A sound intellectual property system is important for knowledge-based economy development. Intellectual Property Department (IPD) of the HKSAR Government ought to be able to have an important supporting role in the development of Hong Kong's Knowledge-based Economy. The problem is IPD is required to concentrate on "Intellectual Property Protection" and not to venture out into areas not understood by higher levels of Government. At the most IPD could help Hong Kong companies to do an audit to "… identify knowledge capital and use these sources in formulating marketing plans." The HKSAR Government could have gone a few steps further. Singapore, Scotland and Finland are good sources of reference. The high-level coordinating unit within the Singapore Government is the Economic Development Board (EDB), an agency that charted Singapore's economic development since the 1960s. Specific support measures include establishing the research council called A-Star (Agency for Science, Technology and Research) that coordinates cross disciplined researches in universities and overseas investments.

HKSAR Government should consider the Knowledge-based Economy as an economic development strategy. The successful experience in Ship Registration Services could be seen as a useful reference. In 1999 the HKSAR Government implemented innovative survey and the quality management system of ships. This has led to a significant increase the total tonnage of ships registered in Hong Kong; from November 5.5 million tons in 1997 to a historical high of 52 million tons in July 2010. This arrangement also brought the ship sale and purchase, financing and insurance services business to Hong Kong. Compared with the Ship Registration Service, Knowledge-based Economy involves a much broader range of services, such as testing and certification, branding and packaging, IP registration, technology transfer, IP commercialisation and other areas which Hong Kong could assist and complement the Mainland on.

HKSAR Government also needs to adjust the definition of Knowledge-based Economy. The Census and Statistics Department published the "Hong Kong as a Knowledge-based Economy ─ A Statistical Perspective". However, the report focuses on narrowly defined indicator from the ICT industries (Information and Technology) and has ignored human resource development and introduction of innovative systems. These generic indicators have completely forgotten Hong Kong's characteristics as a service-based economy, the relations between the "Four Pillar Industries" and the "Six New Pillar Industries" and the "Knowledge-based Economy". To develop the Knowledge-based Economy, HKSAR Government not only needs to allocate more resources targeted at training talents, but also to monitor the knowledge content of industries, human resources from a more useful set of data collection and statistics.

Development of knowledge-based economy also needs to be upgraded to a strategic level, for example, the Financial Secretary should consider establishing a "Knowledge-based Economy Coordination Unit" to co-ordinate the policy development output of the Commerce and Economic Development Bureau and other government departments, and manage other related knowledge-based economy policy and issues in a timely manner.

Alan Lung Ka-lun
Chairman, Hong Kong Democratic Foundation

知識型經濟非空談 2010-09-03 信報財經新聞


特首曾蔭權於去年的施政報告中提出,香港必須走向高增值的知識型經濟,更指出以「創新」及「知識」為本的產業,不限於六項優勢產業,也包括四大支柱產業,問題是以行業為主的直向發展模式流於支離破碎,橫向發展才能促成行業間產生協同效應,才是真正的知識型經濟的發展戰略。

內地「走出去」 對香港的雙刃劍

財政司司長曾俊華在今年的財政預算案亦提出,香港可以配合國家的發展策略,進一步邁向知識型及高增值經濟。內地實行改革開放超過三十年,鼓勵企業「走出去」成為國策也有多年,但大部份企業始終未能成功「走出去」,原因之一是這些「世界工廠」生產的本土產品,頗大比例未能達到國際知識產權的標準。國際知識產權有其複雜性,香港可以憑藉優越的法律制度、國際網絡,與業務經驗幫助解決問題,理應有廣泛的參與及發展空間。可是,事態卻朝相反的方向發展,內地公司近年逐步減少對香港的依賴,駐港的地區總部及地區辦事處的數目不升反跌,由二零零五年六月的二百六十七間減至二零零九年六月的二百二十三間,跌幅超過百分之十六。

優良的營商環境一向是本港經濟賴以持續發展的主要憑藉,這些「第一層次商業條件」(例如:健全的法制,開放的社會環境,完整的制度框架)無論如何優良,也無法改變香港作為中介人的局限性,隨著內地對外直接交往愈形頻繁,香港若不能創造新的競爭優勢,便難逃邊緣化的厄運。

知識型經濟 持續發展必由之路

為此,香港須進一步改善「第二層次商業條件」,包括培養優秀的人力資源、提升生產者服務業多樣化程度、締造有利創新環境的公共政策等,俾能累積研發創新能力,及高增值、高知識內涵的「無形投入」,進而鼓勵企業利用這些「軟技術支援」持續創造經濟價值,逐步擴大知識型經濟的規模。另一方面,內地缺乏成熟的法律環境及法治精神,以至企業難以獨力為產品建立國際品牌,及確立具長遠經濟利益的「自主知識產權」。香港具備自由開放的環境,不但有利本地知識型經濟的發展,更可以為內地知識型經濟發展出一分力。

完善的知識產權制度對知識型經濟的發展至關重要。知識產權署其實可以為知識型經濟的發展提供「軟技術支援」,問題是該署現時的工作重點限於「保護知識產權」,最多只能幫助他們「從現有知識資本中鑒別潛在收入來源,並就這些收入來源制訂市場推廣計劃」。特區政府可以多走一步,新加坡、蘇格蘭及芬蘭的例子可茲參考。新加坡政府早在1960年代便成立高層次的統籌單位 ─ 經濟發展局(EDB),透過科技研究局(A-STAR),協調跨學科以至海外投資。

特區政府宜考慮以知識型經濟作為發展經濟的策略性思維。推廣香港船舶註冊服務的成功經驗,值得參考。特區政府在一九九九年實施創新的驗船安排和註冊船舶品質管理系統,促成在本港註冊船舶總噸位大幅增加,由一九九七年十一月的五百五十萬噸最低位增至二零一零七月的五千二百萬噸的歷史高位,並帶動船舶買賣交易、融資保險服務等。跟船舶比較,知識型經濟所涉及的服務範圍更廣,內地未能為產品提供適當的驗證、包裝、註冊、品牌建設等,香港可以補內地這方面的不足。

特區政府也須調整對知識型經濟的界定。政府統計處出版的《香港 ─ 知識型經濟統計透視》是認識本港知識型經濟的權威性刊物,可是報告的重點限於資訊及通訊科技的普及與應用情況,人力資源發展及創新系統的介紹卻流於泛泛之談,完全忽略本港是服務型經濟的特性,四大支柱產業及六大優勢產業與知識相關的資料均付諸闕如。特區政府若要發展知識型經濟,除了投入更多資源針對性地培養人才外,更須全面監察有關行業的知識含量、人力資源狀況、資料收集及統計等。

發展知識型經濟應提升至策略性高度,為此財政司司長應考慮設立「知識經濟協調組」,負責統籌及協調商務及經濟發展局和其他政府部門,及時制定及處理知識型經濟的相關政策及問題。

龍家麟

The above does not necessarily represent the views of the Foundation. Reproduction of this article requires written permission from the author.

 by Alan LUNG Ka-lun, Chairman