Hong Kong Emerging from the Global Biotech Map Keeping aligned with the global trend, Hong Kong is quick to realize the tremendous potentials in biotechnology and is determined to catch the fifth wave of technology and transforming it into one of its economy pillars for the future. The inaugural of the Hong Kong Science & Technology Parks Corporation (HKSTP) in May 2001 is a major initiative of the Hong Kong Government to transform Hong Kong into a innovation and technology hub. Managed by a team of specialists, the state-of-the-art infrastructure and hightechnology facility has completed its first phase and is fully operational. Situation in Hong Kong If not for the outbreak of Severe Acute Respiratory Syndrome (SARS), Hong Kong dwellers simply would probably not been able to realize the importance of a science park or similar facility designated for medical or scientific research in their hometown. According to CD Tam, CEO of Hong Kong Science & Technology Parks Corporation (HKSTP), that was the first wake up call for all Hong Kong dwellers. APBN Vol. 8 No. 1 2004 5
www.asiabiotech.com There are over 50 science & technology parks in Mainland China cities while none in Hong Kong, making people really wonder why Hong Kong as such a world-class developed settlement has not even one biotech facility within its territories. This has very much to do with the culture of the city. All along, its economic pillars revolve around banking, finance, servicing and manufacturing industries, and researches are still very much academic orientated. Comparatively, biotechnology is a much-overlooked sector. The dazzling city has been known as a city packed with talents and currently there are eight universities in Hong Kong and each year there are hundreds of millions of dollars being invested in driving various leading edge research projects. Yet there is no specified direction in terms of biotech industry. Many of these efforts ended up on shelves after publications and not much was done in transforming these valuable knowledge and efforts into application locally, said Tam. Some of the findings that received further development were transferred abroad in exchange for a sum of royalties. In a sense, Hong Kong is loosing its intellectual properties and innovations. Tam would like to see the Hong Kong tag on all the inventions done locally in future, giving Hong Kong its share in the global innovation map. Government Policies Realizing the situation, both the China Mainland Central Government and the Government of Hong Kong Special Administrative Regional (HKSAR) have introduced initiatives to put an end to this situation. Immigration Law In the past (before 1997), as an initiatives to attract talents, scientists from all around the world (except from Mainland China) can apply a working permit to work and reside in Hong Kong. These talents will be granted permanent residency if they have worked and stayed in Hong Kong for a consecutive seven years. This restriction had indirectly hinder the biotechnology development of Hong Kong (and China as a whole), and over the years, thousands of talented Mainland scientists turned to overseas (e.g. Europe, UK and US) seeking for better career opportunities. To reverse the trend, the new legislation implemented in 2004 enables Chinese scientists the option to work and obtain residency in Hong Kong. This arrangement is a win-win solution China can retain much of the national talents (indirectly, the nation s intellectual properties) while these scientists serve as the driving force behind Hong Kong s biotech industry. Each year, there are tens of thousands of graduates and postgraduates from Chinese universities (not to forget the graduates from the eight local universities in Hong Kong) and this can assure a strong sustaining force behind the industry. 6 APBN Vol. 8 No. 1 2004
CEPA Following the endorsement of the Mainland and Hong Kong CEPA (Closer Economic Partnership Arrangement), with effective from 2004, the Mainland Government has lifted tariffs for selected categories of products imported from Hong Kong (www.tid.gov.hk/english/cepa). This incentive serves to attract more overseas companies to set up R&D and manufacturing plants (e.g. pharmaceutical, diagnostics and food), especially for companies interested in leveraging on Hong Kong s infrastructure and to distribute products into China market. One Country, Two Systems Owing to this arrangement, Hong Kong still practices low tax scheme and no intervention from the Mainland China Central Government, i.e. Hong Kong gets to retain its entrepreneurial heritage. Funding The HKSAR Government has allocated a total of US$1.5 billion for the construction of the Hong Kong Science Park. A 22-hectare site on the Tolo Harbor waterfront has been designated for building the science park. Support Set up a statutory body on 7 May 2001 to determine the direction for Hong Kong knowledge-based industry. Biotechnology Focus A team of experts in biotech and life science including Dr. HM Pang, Senior Advisor, Life Science, HKSTP, is working on the potential and development of biotechnology in Hong Kong. (For details, please contact Dr. HM Pang at email: ming.pang@hkstp.org). With the Bioinformatics Centre opening in Hong Kong Science Park in 2004, the Centre will assist companies in R&D in bioinformatics, biomedical instruments and diagnostics which will open a whole new opportunity for Hong Kong in biotechnology development. The Hong Kong Science & Technology Parks Corporation The Team A board of directors consists of 16 top members have been appointed for the mission, with 14 members from professional associations, relevant industry and academic representatives as well as two from government sector. It is hope that this highly experienced team can help Hong Kong to maximize its capacity to lead as the hub for innovation and technology in Asia. Apart from forming the advisory team, the HKSAR Government also actively supports the Corporation by providing full funding, creating a tremendous momentum to drive the industry. APBN Vol. 8 No. 1 2004 7
www.asiabiotech.com Business Model HKSTP operates with a business model whereby the number of head counts within the organization is kept at its minimum disclosed CD Tam, CEO of HKSTP. Essentially, the team serves as a human resource center to provide the best quality for clients, and by identifying and contracting expertise companies in relevant fields to handle customer request. This approach is a more cost-effective and customers can be assured the best quality service. Infrastructure Hong Kong Science Park Situated at Pak Shek Kok, New Territories, the 22-hectare Hong Kong Science Park [Need to put map here] is designated to serve as a knowledge-based and campus-like environment where high-technology enterprises and talented people can converge to generate synergistic forces. Apart from an affordable rental (at US$1 per sq. ft.), the facility offers ready access to other facilities. For example, research institutes (nearby or located in the parks), and cutting edge technology development facilities in the HK Science Park on a time-share scheme. Tai Po, Yuen Long & Tseung Kwan O Industrial Estate The three industrial estates provide 217 hectare developed land, extensive spaces multistory factory to industries employing innovative technologies or skillintensive processes manufacturing. 8 APBN Vol. 8 No. 1 2004
Tech Center The HKSTP is also equipped with a Tech Center from where to provide full service incubation program. Located next to the Hong Kong Productivity Council and the City University of Hong Kong, this Grade A office building with well-equipped exhibition/ conference facilities and business center is an ideal nurture base for the technology start-ups. Vision There is always a question of competition among various science parks in Asia, and it is of many people s interests to find out how Hong Kong is going position its HKSTP in the niche. I believe all science parks in Asia should work together, not competing with each other, said Tam. In his opinion, it is important to work together and learn from the other science parks in area to complement each other, rather than competing with each other. In this manner, Asia can provide a better overall service to investors in the long run. C D Tam Chief Executive Officer Hong Kong Science & Technology Parks Corporation Tam was formerly the Executive Vice President & President, Motorola, Asia Pacific Region. As a 33-year veteran, Tam built Motorola Asia Pacific region into a multi-billion dollar business. He was instrumental in setting-up major facilities such as Silicon Harbour Center for IC Design in Hong Kong, IC Assembly/Test Center and 8 silicon wafer fabrication plant in Tianjin, China, etc. Moving to the US he became Senior Vice President and Group General Manager for Micro-Controller World Group and later Transportation Systems Group in Austin. He played key roles on a number of government, industry and tertiary institution committees around Asia Pacific. He was elected the Ten Outstanding Young Person of Hong Kong, Executive of the Year (Hong Kong Business Awards), Young Industrialist Award (Hong Kong), and was chosen as one of Ten Asia s Best Executives (Electronics Business Asia). Recently he was awarded an Honorary Fellowship by the Chinese University of Hong Kong. APBN Vol. 8 No. 1 2004 9
www.asiabiotech.com Ming Pang Senior Advisor Life Science Biotech, HKSTP Dr. Pang works closely with appointed overseas consultants and local academia / industry to survey strengths and weaknesses of Hong Kong Life Science and Biotechnology He has enjoyed a long and established career in the pharmaceutical / biotech industry for over 20 years. Throughout those years, he has gained in-depth experience in all aspects of the pharmaceutical industry including R&D regulatory, manufacturing, sales and marketing, technology transfer and commercialisation of pharmaceutical and biotech products. In 2000, he joined the finance industry and was responsible to oversee the business and financial aspect of the life science development projects in Asia. His career spans from East to West covering overseas markets such as Europe, the US, Asia and China. Dr. Pang has sat on numerous local and overseas industry committees and has published numerous research papers on the pharmaceutical industry. About HKSTP Corporation Hong Kong Science and Technology Parks Corporation (HKSTP) is a statutory body set up by the Government of the Hong Kong Special Administrative Region. Its mission is to provide quality infrastructure and support facilities for innovation and technology development in focused clusters* and the upgrading of manufacturing and service industry capabilities; full-service incubation program for technology startups; and foster partnership and collaboration between industry and universities/applied research institutes through consulting, training and research programs. * Focused clusters encompass electronics, biotechnology, precision engineering and information technology/telecommunications industries. Contact Details: HKSTP Corporation Address: Room 1905-13, 19th Floor, Tower 6, The Gateway, 9 Canton Road, Kowloon, Hong Kong Tel: +852 2629 1818 Fax: +852 2664 2481 Email: enquiry@hkstp.org URL: www.hkstp.org 10 APBN Vol. 8 No. 1 2004