1. 1 Higher Education, Innovation and Technology - Changing Dynamics of Hong Kong Prof Tony Chan, President The Hong Kong University of Science and Technology 12 April 2016

2. Table of Content 2 I.Innovation and Entrepreneurship Ecosystem Drives Social and Economic Development II.Higher Education Drives Innovation and Technology III.Case Study: Hong Kong IV.HKUST – Innovation and Entrepreneurship Nurturing V.Conclusion

3. I. Innovation and Entrepreneurship Ecosystem Drives Social and Economic Development  Increasing mobility brought about by globalization and digitalization  Talent concentration: innovation hub synergizing local competitive edges with globalization  Government’s effort in shaping the society and economy by reframing city into center of innovative industries, and attracting talent  Self-contained ecosystem involving different stakeholders for fostering economic development via innovation, technology, entrepreneurship and education, e.g. Silicon Alley, New York Boston, U.S. Innopolis, Russia Silicon Wadi, Israel Hong Kong 3 Magnet for Talent Silicon Alley Boston InnopolisSilicon WadiHong Kong

4.  HKUST – The first Hong Kong government initiative on innovation and technology  Government Initiatives Recent Major Investments: - Injected US$250M to encourage mid-stream applied research projects in universities - Set up a US$250M Innovation and Technology Venture Fund - Earmarked US$64M to set up Innovation and Technology Fund for Better Living Smart City: US$1B smart production & research hub at Tseung Kwan O Re-industrialization: promoting smart production and high value-added technology industries  New Economic Order Development powered by “One Belt, One Road”: investment on all fronts from energy, transport infrastructure, technology, finance and real estate, hitting a total of US$200B by the end of 2018 Hong Kong – Innovation Hub for Pearl River Delta and China: I. Innovation and Entrepreneurship Ecosystem Drives Social and Economic Development

5.  Talent Top universities to nurture talents and generate innovative ideas International environment to draw global talents and families  Research with strategic importance and focus Scientific research efforts in universities (blue sky research vs commercialization) S&T aligned with national objectives  Innovative Environment / Ecosystem responsive to opportunities Free market / Strategic location Open society, free flow of information, IPR protection, mature legal system, efficient infrastructure Government support: Dedicated ministry, policies / priorities, funding, attracting talent Research grants / private funding / venture capital  Cross-country / Cross-disciplinary Collaborations Regional & global partnerships (e.g. universities, research institutions, funding agencies) Popularity of consortia / partnerships Globalization and digitalization  Working with Industry Industry support: R&D funding, expertise, inspiration  Culture Advancing culture of research / innovation 5 Critical Success Factors / Challenges II. Higher Education Drives Innovation and Technology

6. Hong Kong - Unique Strategic Position in China  “World’s freest economy ” (Index of Economics Freedom 2013)  “One Country; Two Systems”  Separate governance systems, e.g. legal, tax, immigration, education, etc. World-class University System  Academic freedom is guaranteed  Western academic system and embedded Chinese culture  Competitive salary level  Access to China’s abundant academic and research resources  University Grants Committee (UGC) established by government in 1965, to drive global standard operation, is led by a board of elites from business & higher education: e.g. Stanford, Cambridge, Oxford & NSW, etc. Research Endowment Fund (REF): US$3B generates investment income of US$145M/year for support of basic academic research  Full range of university: liberal arts college, poly-tech and professional schools and research-intensive universities  Tertiary policy and wide autonomy: stability in funding and policy 6 III. Case Study: Hong Kong Established on a Solid Foundation

7. 7 RankingsHKLondonBoston City having the greatest no. of World’s Top 100 Universities by QS - also higher than San Francisco Bay Area (2), New York (2), Chicago (2), Paris (2), Beijing (2), Tokyo (2) & Melbourne (2) #1 (4 out of 8) #1 (4) #2 (3) Globally Recognized Universities in Hong Kong RankingsHKUSTHKUCUHK World’s Top 60 Universities in QS World University Rankings 2015#28 (#1 in HK) 3051 World’s #1 Young University (<50) by QS#1 (2 out of last 4 years) N/A Global Employability University Ranking 2015 (reported by Times Higher Education) #14 (#1 in China) #83#60 World’s Top 65 Universities in Engineering & Technology  QS World University Rankings 2015  Times Higher Education Rankings 2015 / 2016 #14 (#1 in HK) #26#41 #16 (#1 in China) #34#65 World’s Top 25 Universities in Computer Science & Information Systems  QS World University Rankings 2016 #14 (#1 in China) #19#22 III. Case Study: Hong Kong

8.  Innovation and Technology was designated one of the six pillar industries since 2009 HK ranks 2nd in Asia-Pacific for innovation and 11th among 141 economies worldwide (Global Innovation Index 2015); ranks 5th globally for growth of start-up ecosystem  Government Support The new Innovation and Technology Bureau (ITB) Innovation and Technology Commission (ITC) Innovation and Technology Fund (ITF) - Technology Start-up Support Scheme for Universities (TSSSU) - University-Industry Collaboration Programme InvestHK  Excellent Infrastructure: HK Science Park/ HK Cyberport  Hong Kong Applied Science and Technology Research Institute (ASTRI)  Establishment of the Academy of Sciences of Hong Kong  Strategic Global Partnership MIT Innovation Node (MIT’s first overseas innovation node) Karolinska Institutet China-Hong Kong Regenerative Medicine Centre  Access to Mainland R&D funding and market 973 Program, 863 Program, Peacock Project 16 Partner State Key Labs  Hotbed of startup activity: Co-working spaces operating from 40+ locations; > 1,500 start-ups as of Aug 2015 (up 50% from 2014)  Cross-Border Cooperation: The Guangdong-HK Technology Cooperation Funding Scheme and the Shenzhen-HK Innovation Circle  Competitive Edges of HK International talent Low tax (personal & company) IP protection 8 Pursuing a Broader Base for Hong Kong’s Economic Growth Close to market Part of PRD

9. 9 Communications giant leading future 5G development: Pre5G concept (ZTE), world's first 5G test bed collaboration (Huawei) Huawei: Noah’s Ark Lab in HK Science Park Huawei-HKUST Innovation Laboratory DJI: World’s biggest consumer drone by revenue Set up an R&D team in HK Science Park in 2015, to support the growth of its international business KuangChi (headquartered in SZ, listed in HK): Disruptive novel space technology. “Near Space Ship” 20-100km above sea level for global wi-fi access, resources mapping, disaster relief BGI: Collaboration on ‘Google Genomics’ creates global impact Set up BGI-HK Co Ltd Invest > USD 64.5 mil for lab in HK BYD Auto Co., Ltd.: largest selling Chinese brand Mindray Medical Int’l Ltd: China's largest medical equipment manufacturer DJI & BGI: Global Growth Companies Honourees 2015 by WEF 4 billion users  Close to Shenzhen  China’s Silicon Valley / City of Innovators  Industry driven activities: III. Case Study: Hong Kong Capitalizing Opportunities in China

10.  Strategic focus of HKUST Entrepreneurial and innovative thinking is being cherished Recently created Associate Vice-President for Knowledge Transfer  Entrepreneurship Center: HK$1M Entrepreneurship Competition, the BASE  R&D Corporation (1992): business arm of HKUST for commercialization of technologies it develops  Technology Transfer: #61 globally in US utility patents granted (34 granted) in 2014  Undergraduate Minor Program in Entrepreneurship  HKUST-MIT Research Alliance Consortium - R&D collaboration Research clusters - IoT in Intelligent Buildings and Transportation - Data Science & E-Learning Research US$200K from sponsoring companies/year on each cluster matched 9:1 by ITC Sponsoring companies: Intel, Texas Instruments, NTT, etc.  HKUST-Berkeley-X Alliance for Robotics, Machine Intelligence & X-tronics  Spin-off Companies from HKUST (Perception Digital Holdings Ltd, Googol Technology (HK) Ltd, Advanced Photoelectronic Technology Ltd)  Working with industry (e.g. GSK R&D China-HKUST Neuroscience Laboratory)  MOOC  HKUST Alumni DJI Innovation 10 IV. HKUST – Innovation and Entrepreneurship Nurturing -Advanced Manufacturing -Biomedical Systems

11. Global Financial Centers Spurring with Innovation and Technology: V. Conclusion Successful examples  New York City Named #1 in the world for Technology, Innovation and Entrepreneurship in 2015 Hosted 300,000 employees in the tech sector First-ever Chief Technology Officer (CTO); the new “Smart City, Equitable City” strategy Silicon Alley: with rapidly growing venture capital investments; Cornell Tech NYC Tech Talent Pipeline; Digital.NYC (online hub for regional innovation ecosystem)  London The “digital powerhouse” with US$17B into economy in the next ten years. Growing at a faster rate than the Silicon Valley Around 90 overseas tech companies located to London (Linkedin, Solocal) Tech City UK (first launched in Shoreditch in London in 2010) – In 2015/2016, received funding of US$3M to provide support to digital business community Tech and Information Sector driving 30% of job growth in London since 2009  Zurich Rated #2 in knowledge creation in one of the element in Global Innovation Index Political stability; government support: FinTech Center to promote Finance Technology US$21,914M FDI inward flow in 2014 Swiss Innovation Park focused on innovative Biotechnology and Engineering research (100% sponsored by private sectors)  Singapore USD14B to develop a “knowledge based, innovation driven and future-ready economy” Technology incubation scheme (investing 85% of capital in select startups) Encourage public-private partnerships through funding and industry led consortium  Cluster of talents (universities, S&T, industry) with government support and foreign investments  With strategic focus  Advanced economies: robust regulatory framework; conducive environment for startups; and opportunities for geographical rejuvenation

12. Global Financial Centers Spurring with Innovation and Technology: V. Conclusion  Hong Kong – A financial center which has all the elements needed to lead the way for innovation and technology in China Melting pot of talent Unique strategic location: The gateway to China Operating under “One Country; Two Systems” Bursting with opportunities: Government S&T initiatives; “One Belt, One Road” The prospect of Hong Kong’s development in innovation and technology is promising

13. 13 Thank You!