INNOVATION ENVIRONMENT, R-AND-D LINKAGES AND TECHNOLOGY DEVELOPMENT IN HONG-KONG

Based on detailed interviews with major industry and trade organizations and an investigation of 46 electronics and professional equipment manufacturers, this paper finds that the environment in Hong Kong for technological innovation is relatively unconducive because the territory lacks specific policy objectives and appropriate support structures. The development of advanced technology is limited and is confined to large complex technology producers. The technology Linkage structure is fragmented and underdeveloped; technological interaction between local manufacturers, support organizations and tertiary institutions is lacking. Nevertheless, Hong Kong has the potential to develop an indigenous advanced technology base because of local entrepreneurship, technical ingenuity and an established international trading network. Policies to promote: technological innovation need to focus on fostering small and medium complex technology producers and local R & D linkages. The policy framework must be comprehensive and coherent; measures to improve the innovation environment alone are inadequate.