1. Global Summit of Innovation Economy Creators April 2012 Fostering Innovation Development – Hong Kong Experience E. Anthony Tan Chief Executive Officer Hong Kong Science and Technology Parks Corporation

2. 2012 Index of Economic Freedom An annual guide published by The Wall Street Journal and The Heritage Foundation, Washington's No. 1 think tank. Freest Hong Kong’s economy: the Freest in the world (with overall score: 89.9) (Source: http://www.heritage.org/index/country/hongkong)http://www.heritage.org/index/country/hongkong World Rank Country Overall Score Change from Previous 1 Hong Kong 89.9+0.2 2Singapore87.7+0.3 3Australia83.1+0.6 4New Zealand82.1-0.2 5Switzerland81.1-0.8 Global Ranking (Source: http://www.heritage.org/index/country/hongkong)http://www.heritage.org/index/country/hongkong Rule of Law Limited Government Property Rights 90.0 Government Spending 91.0 Freedom from Corruption 84.0Fiscal Freedom 93.1 Regulatory Efficiency Open Markets Business Freedom 98.9 Trade Freedom 90.0 Labor Freedom 86.5 Investment Freedom 90.0 Monetary Freedom 85.8Financial Freedom 90.0

3. The New Economic Order The rise of the BRICS nations: Brazil, Russia, India, China, South Africa Source: IMF Data & Statistics Sept. 2011 & CIA World Fact Book 2010 GDP (US$ Billion) Source: IMF Data & Statistics Sept. 2011 BRICS: population 2.94 billion(~1/3 world) GDP US$13.6 trillion (~21% of World US$63.04 trillion) Reserves US$4.4 trillion (~35% of WW)

4. China - Key Economic Regions (Source: http://www.zpooo.com/info/) Shenyang Beijing Tianjin Nanjing Shanghai Hangzhou Wuhan Chengdu Chongqing Guangzhou Shenzhen Hong Kong

5. The Greater Pearl River Delta (PRD) Over 42% of Hong Kong companies have R&D presence in PRD (Source: http://www.info.gov.hk/info/gprd/pdf/F_GPRD_Overview.pdf)http://www.info.gov.hk/info/gprd/pdf/F_GPRD_Overview.pdf Area: 42,824 km 2 Population: 470 million (~94% of EU population) 9 +2 (Hong Kong & Macao)

6. Success Factors for Innovation Development Market - China As of 2012, China has the world's second-largest nominal GDP, totaling approximately 47.2 trillion yuan (US$7.48 trillion), with rising living standards. Capital- Global Financial Centre Hong Kong is an international financial center with a high degree of transparency and prudent regulatory enforcement. Stock Exchange Market Capitalization (2011) In 2011, total equity funds raised by HKEx was US$ 62.9billion, with 101 newly listed companies on the Main Board and GEM raising US$33.3 billion - ranking first globally for the third year in terms of funds raised by initial public offers (IPOs). Talent - From Around the World 2008 recorded over 36,000 talents from overseas/Mainland to HK. HKU/CUHK/HKUST: 3 leading research U rank top 40 of World University Ranking 2011 (QS Quacquarelli Symonds Limited). 4 HK Engineering Schools are top 100 of global ranking. Exchange USD bn (End-2011) 1NYSE Euronext (US)11 796 2NASDAQ OMX (US)3 845 3Tokyo Stock Exchange Group3 325 4London Stock Exchange Group3 266 5NYSE Euronext (Europe)2 447 6Shanghai Stock Exchange2 357 7Hong Kong Exchanges2 258

7. HK Technology Ecosystem University Research Local well established companies Early Technology Adaptors Mainstream Market R & D Centres: e.g ASTRI New Technology Start-up Incubation Angel / VC Infrastructure Support Gov’t Funding Gov’t Incentives e.g. LED Light Bulb, EV Multinational Companies Window of Opportunities TALENT CAPITAL MARKET Hong Kong Science & Technology Parks

8. HK/PRD Ranked No.1 in R&D Expenditure & Personnel (2009) Source: China Statistical Yearbook 2010 China Statistical Yearbook on Science and Technology 2010 Hong Kong Innovation Activities Statistics 2009

9. Hong Kong Science & Technology Parks Corporation Hong Kong Science Park InnoCentre Industrial Estates

10. Phase 1 Phase 2 Phase 3 (Constructing) Hong Kong Science Park (3-phase Development) Phrase 1 Information Communication Technology Phrase 2 Biotechnology Phrase 3 Green Technology Phase 3 Gross floor area: 105,000 sqm Development Cost: US$0.6bn Bldg occupation: End 2013- End 2015

11. Phase 3 Objectives To plan and develop phase 3 into a sustainable development that incorporated the latest green technologies and green building design To accomplish its vision being a role model in promoting and implementing green sustain- able construction and development in Hong Kong Targeting net zero carbon with due consideration of cost-effectiveness and road-mapping To evolve Phase 3 into the catalyst to develop Hong Kong and Pearl River Delta Region as the hub for clean-tech A New Horizon The Green Decade

12. China’s Ambition in Green Technology Improve Building Energy Saving All new buildings are mandated to achieve 65% energy savings compared to the existing building stock Energy and Environmental Taxes New environmental tax plan which is likely to be levied on CO2 emissions and discharges of polluted water, has been submitted to the State Council for review More Mandatory Green Targets The 12 th FYP maintained the existing four mandatory greentech targets while adding 6 new mandates, e.g. percentage of non- fossil fuel from primary energy consumption Policies for Innovation Stepped Up Strategic Emerging Industries which include new energy vehicles, energy efficiency and new energy (solar, wind and biomass) are identified to help advance economic development. (Source: The China Greentech Report 2011) The 12 th Five Year Plan (2011-2016) further emphasises energy and environment development

13. Hong Kong Science Park Enabling Growth and Innovation Phase 1+2 (Current) 382 Companies (32% from overseas) (32% from overseas) >9,000 people Annual Turnover ~US$16billion(2011/12) Phase 1+2+3 (Projected) >500 Companies >12,000 people

14. Hong Kong Inception of Hong Kong Science & Technology Parks Corporation HKSP now home to: 382 companies >9,000 employees Russia Innovation Development -a bright future