Hong Kong Business News

Tech executive Fan Yi-chen commutes from his home in Shenzhen for his job at the Hong Kong-Shenzhen Innovation & Technology Park (HSITP) each day. His cross-boundary trip takes only about half an hour, yet it bridges two complementary business landscapes.

Mr Fan heads the Hong Kong operation of a Mainland technology firm specialising in artificial intelligence-driven chemical experimentation.

By leveraging big data and algorithms to design experiments, and deploying robots to run them and gather feedback, the firm’s technology is drastically speeding up research and development (R&D), in fields such as pharmaceuticals, new materials and new energy.

Strategic expansion

With its Mainland business increasing by three to four times over the past year, Mr Fan’s company is now eyeing the global stage. The decision to set up a base at HSITP was a strategic move to utilise Hong Kong’s edge in internationalisation and its research capabilities.

“Clients have their own requirements for data compliance and patents,” Mr Fan reflected. “We believe setting up an office here helps us to expand overseas. Moreover, Hong Kong’s major universities are among the top-tier institutions in China, possessing world-class research capabilities that can help us upgrade our algorithms.”

The company’s global ambitions received a major boost after it was selected for the HSITP Incubation Programme last year. The initiative unlocks up to $3 million in funding over three years, alongside specialised acceleration services.

“It provides excellent support in technology matching, refinement and internationalisation,” Mr Fan said.

Rather than just providing capital, the programme pairs startups with key industry partners. Mr Fan’s firm was matched with a leading incubation platform to assist in its ambitions to “go global”.

“The incubation platform has spent many years cultivating international markets,” he said. “With consulting centres across the Middle East, Europe, the US and Japan, they can connect us with internationally renowned investors and potential clients.”

Global launchpad

The inaugural HSITP Incubation Programme has struck a chord with the global tech community. It received more than 750 applications, from which 108 startups were selected.

While the majority hails from Hong Kong, Macao and the Mainland, about 16% consist of overseas enterprises from countries such as Singapore, Switzerland and the UK.

In terms of the cohort’s industry distribution, life and health technology represents about 60%, while artificial intelligence and data science account for about 40%.

Targeted assistance

The programme is designed to offer customised coaching and funding spanning one to four years, depending on a firm’s developmental stage.

According to HSITP Chief Executive Officer Vincent Ma, the park’s goal is to build a competitive base for transforming R&D results into commercially viable products. The selection process, he noted, values both technical strength and business viability.

To address the startups’ diverse needs, the park has structured its support into three distinct tracks.

“At SPIN@HSITP, which is an ideation type of programme, the technology plus a preliminary business plan will be sufficient,” Mr Ma explained. “IGNITE@HSITP will be at the stage roughly around three to five years after the company’s R&D work. And then your technology is more ready to get a prototype.

“GAS@HSITP is the more advanced stage that you possibly have a more robust R&D outcome that you will start to think about, like applying for go-to-the-market commercialisation.”

Of the current cohort, 61% are enrolled in the early-stage SPIN@HSITP track, while 20% are receiving incubation assistance through IGNITE@HSITP and the remaining 19% are under the advanced GAS@HSITP track, aiming at market expansion.