1. How to Become a Creative City? Stephen Yan-Leung Cheung City University of Hong Kong

2. Content 1.The needs for innovation 2.How innovative Hong Kong is? 3.Ways forward

3. Foundations of Past Successful Stable macro-economic environment More 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 creatively 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: 2004 Knowledge Assessment Methodology

8. Basic Scorecard: Hong Kong (II) Source: World Bank: 2004 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 1.Education 3+3+4 Creative abilities Student participation Questioning Debate 2.Import talented people

13. 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

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

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

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

17. “ 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

18. ~ END ~