hkstp.org

Green Technology ClusterWhere Conserving The Earth Means Business

Green TechnoloGy

A new mandate for sustainable development

Green technology encompasses varied disciplines ranging from renewable energy and power storage, smart buildings innovations, green living technology, to smart transportation and mobility, waste management and recycling.

Most countries around the world have passed legislations on pollution control and carbon emission. Eco-friendliness is no longer an option, but an obligation. All the big players around the world have jumped on board requesting their subcontractors and suppliers to provide environmental audit of their products and services. Policy makers are also proposing market-based instruments to address climate change, such as carbon taxes and systems of tradable carbon rights, to put a price tag on pollution and wastage of resources.

In 2013, the global market for environmental technologies reached US$917 billion1 and in developing countries alone, there’s a US$1.6 trillion market to capitalise on in the

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GREEN TECHNOLOGY

next decade2. One of the global economic powerhouses and one of the biggest polluters in the world,3 China saw the biggest renewable energy investments in the world in 2014 — a record US$83.3 billion, up 39% from 2013, over twice as much as the amount spent by the U.S4. The government is also determined to crack down water-polluting industries and waste management is expected to add RMB 5.7 trillion to China’s GDP5.

Environmental tech businesses are sure off to a good start in China and deemed to have much potential in future. Hong Kong Science Park is the perfect base for green tech enterprises to anchor the region and exploit the potential therein.

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Uonment

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1 International Trade Administration. 2015 Top Markets Report: Environmental Technologies, July 2015. http://trade.gov/topmarkets/pdf/Environmental_Technologies_Top_Markets_Report.pdf Retrieved on 10 Oct 2015

2 The Climate Group. Small and medium-sized enterprises can unlock $1.6 trillion clean tech market in next 10 years, 25 Sep 2015. http://www.theclimategroup.org/what-we-do/news-and-blogs/small-and-medium-sized-enterprises-can-generate-us16-trillion-in-next-10-years-through-cleantech/ Retrieved on 10 Oct 2015.

3 Meyer Robinson. China, the World’s Biggest Polluter, Commits to Cap-and-Trade Carbon Emissions. 25 Sep 2015. http://www.theatlantic.com/science/archive/2015/09/the-worlds-largest-cap-and-trade-program/407371/ Retrieved on 10 Oct 2015

4 Frankfurt School FS-UNEP Collaborating Centre. Global Trends in Renewable Energy Investment 2015 http://fs-unep-centre.org/publications/global-trends-renewable-energy-investment-2015 Retrieved 10 Oct 2015

5 Te-Ping Chen. China Cracks Down on Water-Polluting Industries, 17 April 2015 on The Wall Street Journal. http://www.wsj.com/articles/china-cracks-down-on-water-polluting-industries-1429267822 Retrieved 10 Oct 2015.

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honG KonG ScIence PArK

The winning formula for green tech enterprises

01 STRONG GOVERNMENT POLICIES IN HONG KONG

The best place to set up your business is where the government is stable, credible and supportive. Hong Kong is one of your top choices.

BEST Place TOP Choices

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Funding supportThe government is committed to long-term plans that foster innovation and technology in Hong Kong. By January 2015, its Innovation and Technology Fund (ITF) has provided about HK$8.9 billion for more than 4,200 projects6. Diverse R&D funding schemes are available to tech companies, such as R&D Cash Rebate Scheme, Enterprise Support Scheme, Innovation & Technology Support Programme, General Support Programme for Patent Application Grant, University Industry Collaboration Programme. For more details, please visit www.itf.gov.hk.

HK$8.9FUNDING

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Intellectual property rightsProtection of intellectual property is the basis for creativity and innovation to flourish. Hong Kong has well-established intellectual property laws that are stringently enforced. According to The Global Competitiveness Report 2014-2015, Hong Kong ranks number 10 for its intellectual property laws and protection7. Trademarks, copyrights, patents, design patents, and domain names are all protected by the laws.

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TaxThe tax system is simple with low tax rate. Profits made in Hong Kong are taxed 16.5%. There is no VAT, no withholding tax, nor tax on capital gain, dividends or transfer of estate.

CEPAHong Kong and mainland China signed a free trade agreement known as Closer Economic Partnership Arrangement (CEPA) that grants Hong Kong businesses greater access in the mainland market. It’s the perfect springboard for foreign investors to tap into business potential in the mainland.

6 The government of the HKSAR, 2015 Policy Address. http://www.policyaddress.gov.hk/2015/eng/p41.html. Retrieved on 10 Oct 2015.

7 World Economic Forum. The Global Competitiveness Report 2014-2015. http://reports.weforum.org/global-competitiveness-report-2014-2015/rankings/ Retrieved on 10 Oct 2015.

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03 SMART MEGA-CITY IN THE MAKING

With the Hong Kong-Zhuhai-Macao Bridge due for completion in 2017 and the expanding high-speed mass transit network in Guangdong province, Pearl River Delta is set to become the largest conurbation in the world with over 100 million inhabitants8. The Hong Kong government embraces the smart city concept and there are many ways green tech enterprises can benefit. Smart grids and renewable energy sources play an important role in curbing air pollution. Eco-built environment technology and building system interoperability contribute much towards smart resource consumption throughout the course of urbanisation. Sustainable forms of transport such as electric cars and mass transit systems help cut back on carbon emission. Smart water and waste management also play a pivotal role in conserving vital resources for the smart city. Opportunities abound for green tech innovators.

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8 The Economist. The Pearl River Delta: not just a tale of two cities, 17 July 2014. http://country.eiu.com/article.aspx?articleid=1692027353&Country=Hong%20Kong&topic=Economy&subtopic=Forecast Retrieved on 10 October 2015.

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04 STRATEGIC GEOGRAPHICAL LOCATION

At the heart of Asia, Hong Kong is only a two-hour drive away from Pearl River Delta, China where a number of high-tech manufacturers are located. Most major cities in Asia (such as Beijing, Shanghai, Seoul, Tokyo, Bangkok, Kuala Lumpur, Singapore and Taipei) can be reached within four hours of direct flight from Hong Kong, making it the perfect IT base to launch your products and services in Asia and China.

05 STATE-OF-THE-ART INFRASTRUCTURE

Hong Kong Science Park’s 22-hectare waterfront site totals 330,000 sq m of floor space with offices, laboratories, conference and exhibition venues. A variety of R&D office units are available for enterprises of varying sizes, ranging from SME plug-and-play offices to build-to-suit premises for larger operations. Lab spaces and facilities can be tailor-made according to your specific research needs.

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06 ONE-STOP R&D SOLUTION

Hong Kong Science Park is home to over 40 green tech companies covering different products and services such as smart building technology, energy efficiency solutions, eco-friendly product, waste management and recycling, smart transportation and mobility, renewable energy and power storage. From resources such as land, labour, finance and funding, via cluster synergy and networking for collaborative opportunities, to technical testing and commercialisation, Hong Kong Science Park has everything you need under one roof. Networking events and study tours hosted by the Park are highly popular among investors, academics and government officials. These are vital opportunities for tenants and incubatees to touch base with like-minded potential partners and collaborators in the region.

07 INCUBATION AND SUPPORT PROGRAMMES

Incu-TechA 3-year incubation programme for tech start-ups, Incu-Tech incubatees enjoy rent subsidy on working space in the Technology Incubation Centre at the Park. Various business and technology supporting services are available.

LEAPThe Leading Enterprises Acceleration Programme (LEAP) is the initiative that provides in-depth assistance on business and corporate development to selected incubatees and graduates of HKSTP Incubation Programmes as well as selected current tenants of the Park for them to grow into regional or global enterprises. Business and investment matching, professional panel and mentoring services are also available for selected companies to prepare them for eventual IPO or M&A.

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Over 40Green TechCompanies

HKSTP Venture Capital Partnership ProgrammeHKSTP has its own Venture Capital Partnership Programme for selected tenants to connect with globally renowned venture capital firms, as funding alternatives other than raising capital in public markets or bank loan. For more details, please visit www.hkstp.org.

Corporate Venture FundThe Corporate Venture Fund (CVF) is an initiative of HKSTP to fill the funding gap faced by local tech start-ups in the early stage by co-investing along with private investors into the equity of selected high-potential start-ups. For more details please contact the CVF Team at CVF@hkstp.org.

Soft Landing CentreSetting up a full-fledged tech enterprise in Hong Kong without any funding and financial assistance could be difficult. What if there is a way to test the water before setting up an operation in full swing? The Soft Landing Centre provides low-cost entry-level office facilities for those interested in making the first contact with investors, manufacturers and potential clients in Hong Kong, mainland China and other Asian markets. Office cubicles with reception service, Wi-fi access, shared conference room and basic office support are available for as little as HK$500 per week. The fee also covers business matching service, fundraising support, professional service referral, business plan consultancy and access to talent pool recruitment platform.

There is an admission and screening process for both Incubation Programme and Soft Landing Centre. For more details, visit www.hkstp.org.

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hkstp.org

Green Technology ClusterWhere Conserving The Earth Means Business

Hong Kong Science and Technology Parks Corporation