Guest lecturer Regina IP LAU Suk Yee B.A.-First Class Honor (HKU), Master of Letters (University of Glasgow), Master of Science in Management (Stanford University), Master of Art in East Asian Studies (Stanford University).

Guest lecturer: Mrs. Regina Ip Mrs. Ip worked for the Hong Kong Government from 1975 to During that time, she had served in a wide range of areas including democratization of local government, international trade and industry and security. Mrs. Ip was the first woman to be appointed the head of a disciplined service (Immigration Department) ( ) and as Secretary for Security of Hong Kong ( ).

Guest lecturer: Mrs. Regina Ip In 2003, Mrs. Ip pursued higher studies at the Stanford University for a MA program in East Asian Studies In July 2006, she established a think tank, Savantas Policy Institute, focused on tackling the twin structural constitutional and economic problems of Hong Kong. Its core vision is to transform Hong Kong into a knowledge-based economy. In July 2007, Mrs. Ip was appointed by the Government as a member of the Commission on Strategic Development.

Guest lecturer: Mrs. Regina Ip In September 2008, Mrs Ip was elected Legislative Council Member in the Hong Kong Island geographical constituency. In the same year, she joined the China Reform Council as Vice Chairperson ( ). She was also awarded the title of “Outstanding person for Chinese Entrepreneurial Innovation 2008” by the Chinese Entrepreneurial Innovation Forum.

Making IT Work in Hong Kong A presentation by Regina Ip Chairperson, Savantas Policy Institute

IT/ICT Information Technology /Information and Telecommunications Industry (OECD) Information Technology Telecommunications Products (things in boxes) Software Services (things supplied on-line)

IT/ICT Industry Grew at about 10% per year for 25 years to comprise about 4% of total world output

Growth driven by Decline in transportation costs A huge reduction in telecom costs Advances in computer technology, such as doubling of the number of circuits per chip every 18 months to 2 years tremendous advance in storage technology Emergence of fibre optics and space technology with advanced communications capacities Emergence of modularized standards in many goods

US Policy Requiring AT&T to license transistor technology at a low price to all comers and unbundling of IBM ’ s software from its hardware Creation of an independent software industry

Modularization New Business Models Comprising independent, specialized suppliers of hardware and software within value-added chains; supply chain management, exploitation of brand names.

Relationship Between Developed World and Asia Between 1977 and 1989, 88% of 176 semiconductor companies in the world formed in US (55% in Silicon Valley) Americans, Japanese and Europeans conceived new products and offered large markets for them, while the Asians assembled them

Relationship Between Developed World and Asia Developed World Product conceptualization, innovation, architecture development Assembly Region Detailed design, application programming or services work

Developed World Assembly Region Add Value (ICs, flat panel displays, computers, mobile devices, disc drives, other electronics and telecoms exports)

Six IT/ICT Regions in Asia Japan Teheran Valley in Seoul and Daeduk in Republic of Korea (ROK) Zhongguancun Science Park in Beijing Hsinchu Science – based industrial Park in Taiwan Singapore Bengalore in India Cyberport

Regional Clusters Driven by agglomeration economics, a term that denotes the several kinds of benefits that firms in similar lines of work can derive from proximity (Porter); The net effects of several factors, namely Transportation and communications technologies and networks Time and speed demands in specific markets Proximity to customers Knowledge capabilities Pricing pressures ( Kenney and Florida)

Knowledge Clusters (as distinct from Production Clusters) MIT and Harvard in Boston Stanford and UC Berkeley in Silicon Valley KAIST in Daeduk in Korea ITRI in Hsinchu Academy of Sciences and major universities in Beijing

Regional Specializations Taiwan A major cluster of computer manufacturing and design companies Shanghai Silicon foundry and design complex Beijing Software Cluster Singapore Southeast Asia hard disk production complex

Determinant Factors for Regional Specialization Historical Legacy National technology strategies Education, especially of scientists and engineers Acquisition and development of technologies Trade and Foreign Direct Investment (FDI) Telecom Investments Finance and Industry structure Creation of high-tech clusters (Rowen, 2007)

China ’ s strategy Train technologists Bring back overseas trained scientists Help scientists and engineers in research institutes and universities form companies Encourage foreign firms bring technology and management skills through FDI Large investments in R&D Large investments in telecoms

India ’ s strategy Market Liberalization Investments in satellite communications Opening of telecom sector Reform of financial sector boosting venture capital industry

Incubators – especially useful when wider economy poses obstacles for start-ups Who created Clusters ? Government ? Market ? Not prominent in Japan Clusters obsolescing because of arrival of low-cost, digitized information ?

Country and Regional Strategies Licensing of Western technology Government support for R&D Keeping foreign firms out Creation of strong, export-oriented manufacturing industry, initially with technology and FDI from US and focus on improving manufacturing process Foreign investment in R&D centres Spin-offs from state-supported research institute (ITRI in Taiwan) FDI/Technology transfer by MNCs

Next High Tech Clusters Shenzhen? Hong Kong (Cyberport)? Cyberport Focus of Digital Entertainment Incubator Scheme Creation of DE Cluster?

Cyberport – Ready for a Reboot?