context: The plan aims to position China’s southeastern region as a global tech innovation hub. Given Hong Kong's openness and closer adherence to international norms and regulations, the project brings opportunities for foreign companies and institutions to set up collaborations in the former colony with operations in nearby mainland provinces.
State Council's Hong Kong–Macau–Guangdong Greater Bay Area (GBA) development plan calls for an open innovation community, a better innovation environment and sci-tech innovation entities and platforms. The plan will centre on an innovation corridor, which started in 2017 along the Guangzhou–Shenzhen highway, modelled after the State Route 128 highway in California's Silicon Valley, reports Jiemian. In July 2018, Guangdong province announced extending the corridor to Hong Kong. It will bring much-needed internationalisation to Pearl River Delta high-tech industrial resources, says Lin Jiang 林江 Sun Yat-Sen University Department of Economics.
But even Guangzhou–Shenzhen collaboration is not always a smooth process, says Ding Li 丁力 Guangdong Chinese Academy of Sciences Regional and Enterprise Competitiveness Research Centre director. The compartmentalisation of local finances encourages officials to prioritise their own areas. Still, Hong Kong and Shenzhen have the potential to create interesting synergies, says Ding.
Lok Ma Chau Loop on the Hong Kong side of the border is already being developed into a Hong Kong–Shenzhen innovation and sci-tech park, notes Caixin. Next to similar 'Hong Kong enclaves' on the mainland, the plan's proposed re-industrialisation could involve setting up small Hong Kong industry parks where Guangzhou manufacturers assemble phones to circumvent import restrictions by 'protectionist countries', says Peng Peng 彭澎 Guangdong Comprehensive Reform and Development Research Institute vice director. Hong Kong lacks the land for a large advanced manufacturing zone, but it could set up an AI demonstration area, adds Peng.
Re-industrialisation will be key to energising Hong Kong's economic activity and innovation, says Cao Zhongxiong 曹钟雄 China (Shenzhen) Development Institute Department of New Economy managing director. Industry is only 2.5 percent of Hong Kong's GDP, much less than that of New York and London. The nine mainland cities included in the plan will function as incubators and accelerators, says Cao.
The plan promotes frictionless travel, work, residence and logistics in the area and opens up domestic research funding to qualified Hong Kong universities and research institutes. This opening up is one-directional, says Ding, noting that hurdles remain in the mainland-to-Hong Kong direction. Integrating sci-tech resources will be key for the plan's success, adds Lin, but it will take years to harmonise IP protection, research ethics and lab practise standards. Differences between market- and state-led approaches will also hamper big data centre and international platform construction, says Lin.