1. Hong Kong Industrial Development in the Innovative Era
Stephen Yan-Leung Cheung
City University of Hong Kong

2. Content Hong Kong economic model in the past Knowledge economy?
Ways forward

3. Foundations of Past Successful
Stable macro-economic environment
Open economy
High saving and investment rates
Educated work force

4. Changes
Economic Role of China
Sources of Growth

5. Implications for Development Policy
Innovations are needed
How Hong Kong will cultivate innovations within our economy

6. Knowledge Assessment Methodology (World Bank)
Performance Indicators
Economic Incentives and Institutional Regime
Education and Human Resources
Innovation System
Information Infrastructure

7. Basic Scorecard: Hong Kong (I)
Source: World Bank: 2005 Knowledge Assessment Methodology

8. Basic Scorecard: Hong Kong (II)
Source: World Bank: 2005 Knowledge Assessment Methodology

9. Knowledge Economy Index
Source: World Bank: 2004 Knowledge Assessment Methodology

10. Ingredients
Human Capital
Investment

11. Ingredients
Human Capital (才)
Investment (財)

12. Human Capital
Externally
Internally

13. Capital Inflow Major financing centre for Chinese Enterprises
Major driving factor for Pan-Pearl Delta Region

14. Research and Development
Role of Government
Role of private sector
Role of universities
Participation of intellectual property rights
Incentives
Tax incentives
Competition
China
→ Win-win situation

15. International Evidence on R&D Expenditure
Total R&D Expenditure
Source: OECD, MSTI.

16. International Evidence on R&D Expenditure
Government Expenditure
Source: OECD, MSTI.

17. International Evidence on R&D Expenditure
Private Expenditure
Source: OECD, MSTI.

18. “ People with ideas - people who own ideas - have become more powerful than people who work machines and, in many cases, more powerful than the people who own machines.”
The Creative Economy, John Howkins

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