Use of Innovation and Technology in Environmental Protection and Testing Review of Innovation and Technology Fund

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Use of Innovation and Technology in Environmental
Protection and TestingReview of Innovation and
Technology Fund
19 January 2011
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• I) Existing Support for Innovation and Technology
  Development
• Promote Use of Innovation and Technology in
  Public Sector
• Refine Funding Mechanism for Facilitating
  Technology Realisation/Commercialisation

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I) Existing Support for Innovation and Technology
Development
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• Hardware
• (Infrastructure)

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Innovation and Technology Commission (230)
Hong Kong Science and Technology Parks
Corporation (185)
Hong Kong Productivity Council (607)
Hong Kong Applied Science and Technology Research
Institute Company Ltd (570)
Automotive Parts and Accessory Systems (24)
Logistics and Supply Chain Management Enabling
Technologies (38)
Nano and Advanced Materials Institute
Limited (39)
Hong Kong Research Institute of Textiles and
Apparel (18)
Hong Kong Jockey Club Institute of Chinese
Medicine (20)
Note Numbers in bracket refer to the number of
establishment in the organisation/centre
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• Hong Kong Science and Technology Park
• Home to over 300 companies
• Phase 3
• Expenditure HKD 4.9 billion
• Work to be commenced in 2011
• Completion in phases between 2013-2016
• Additional GFA 105,000 sq m 4,000 RD related
  jobs

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• Hong Kong Science and Technology Park
• Green Technology Cluster
• Focused industries photovoltaic technology, LED
  lighting, etc.

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• Software

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• Funding Support (ITF)
• Launched in 1999 with fund HK5 bn
• 4 funding programmes
• Innovation Technology Support Programme (Two
  major types
• Platform Projects
• 10 from industry 90 from ITF
• Industry does NOT own IPs
• Collaborative Projects
• 50 from industry 50 from ITF
• Industry will own IPs
• University-Industry Collaboration Programme
  (50 from industry 50
  from ITF Industry will own IPs)

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• General Support Programme (for non-RD
  activities)
• Project scope
• contribute to fostering innovation and technology
  culture in Hong Kong
• Project grant up to 90 of total approved
  project cost
• Small Entrepreneur Research Assistance Programme
  (SERAP)
• Dollar-to-dollar matching basis maximum HK4
  million from ITF)

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• RD Centre Programme
• 5 RD Centres
• Nano Advanced Materials Institute (NAMI)
• Nanotechnology and advanced materials
• Research Institute of Textiles and Apparel (RITA)
• Textiles and clothing
• Automotive Parts and Accessory Systems (APAS)
• Automotive parts and accessory systems
• Logistics Supply Chain Management Enabling
  Technologies (LSCM)
• Logistics and supply chain management
• Applied Science and Technology Research Institute
  (ASTRI)
• ICT
• Note under ASTRI ? HKJCICM

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• Cash Rebate Scheme
• 10 rebate for ITF projects and projects
  undertaken with local RD institutions
• - e.g. a 1mn Collaboration Project

HK
(a) RD expenditure borne by the company 500,000
(b) Profit tax saved (16.5) (82,500) (a x 16.5)
(c) Cash rebate (10) (50,000) (a x 10)
(d) Taxable part of the cash rebate (16.5) 8,250 (c x 16.5)
Actual RD expenditure 375,750 (abcd)
Only 37 of total cost
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1. Liaison with key players

Government (?)
ITC
Industry (?)
Academic (?)
Research Institute (?)
Innovation Technology in Public Sector
Programme
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II) Promotion of Innovation and Technology in
Public Sector
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???One-Stop Support

• ITC serves as a conduit to match user needs with
  technology know-how developed by
  innovators/researchers
• ITC provides funding ITF and Cash Rebate Scheme
• Government users to provide inputs on user
  requirements to IT suppliers, ie. matching
  demand with supply
• Government departments and public bodies to
  conduct trial use of research deliverables
• User feedback after trial use would facilitate
  innovators/researchers to fine-tune research
  outputs to products more in line with market
  demand
• IT suppliers build referencebility.

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• Examples
• LED lighting
• Highways Department, Housing Department
• E-Learning Pilot Scheme
• Education Bureau
• RFID Technology for workplace automation and
  operational efficiency
• Customs Excise Dept, Correctional Services
  Dept, Radio Television Hong Kong

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• Health Care and Welfare Sector
• Hospital Authority
• Hong Kong Council of Social Service

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• Health Care and Welfare Sector
• Projects
• Handy device for community nurses for home visits
• Drug dispenser for elderly patients
• Special computer with Skype capability for
  bed-ridden senior citizens
• RFID Tags and Management System for tracking new
  born babies in hospital
• RFID Tags and Management System for tracking
  tools and gauzes used in operating theatre in
  hospital
• Digitization and e-copy of pathology slides for
  easy retrieval/ examination by doctors in
  hospital
• Computer designed for easy sterile for Paediatric
  Ward
• Convenient login device for doctors/nurses to
  login HA main system

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1. Refine Funding Mechanism for Facilitating
   Technology Realisation/Commercialisation

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• Extending ITF Vertically
• Provide funding support for production of
  tools/prototypes/samples and conducting trial use
  in public sector
• Provide Follow-On Funding advanced approval
  mechanism.
• Extending ITF Horizontally
• Adopt cluster project approach for project
  consideration.

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Vetting Criteria

• Scientific component
• Technical capability
• Financial considerations
• Existence of a holistic plan to realisation /
  commercialisation
• Relevance with Government policies or in overall
  interest of the community
• Proposal on IP rights and benefit sharing and
• Management capability.

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(No Transcript)
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Overseas
Local
Govt departments ?(except ITC)

• Ensure availability of hardware
• Science Park
• Industrial Estates
• leveraging the availability of land in Mainland
  e.g. the DuPont model under the Shenzhen Hong
  Kong Innovation Circle

CEDB/ITC (Policy formulator, co-ordinator
and facilitator)
With all stakeholders on board and support on
both hardware and software fronts, proceed to
develop good RD projects
Industry ?/companies
Universities ?

• Ensure availability of software
• ITF funding
• linkage with Mainland and overseas contacts
• Cash Rebate Scheme
• ensure fair system on IP/ benefit sharing to
  motivate parties concerned
• interface with RGC so that good projects, which
  migrate to the stage of applied research can
  continue under ITF funding

RD Centres ? (HKPC, VTC)
Stakeholders
Role of CEDB/ITC
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Inception of good project
Current ITF Funding Scope
Project Stakeholders Companies - industry
sponsors/future partner to pursue
commercialisation Universities/RD Centres to
provide research support Government
department(s)/ quango(s) etc to provide input on
users' requirements as well as agree to
participate in future pilot scheme(s)
RD Completed Submission of report to
ITC (paper report)
Applicants can apply for funding to cover tooling
/ prototypes / samples / trial schemes
Fine tune product to meet market needs Obtain
reference from ITC / Government department(s) or
quango(s)
Funding approved
Enter market successfully
Production of tooling / prototypes / samples
Funding approved for conducting RD
Feedback with good field experience
Realisation / commercialisation achieved
Trial Run by Government department(s)/ quango(s)
/ welfare agency client(s) / chamber(s) of
commerce and trade association(s)
Comprehensive system of vetting under ITF to
ensure projects with higher chance of realisation
be given priority funding support
To rectify deficiencies / improve products based
on feedback
Feedback with unacceptable field experience
Submission of application for RD
Feedback to further improve process
Process for RD to Realisation
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Thank you!