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Following is the speech by the Chief Executive, Mr Donald Tsang, at the opening ceremony of the InnoCentre in Kowloon Tong this afternoon (November 13) (English only):
Victor, Freeman, Carlos, ladies and gentlemen,
It gives me great pleasure to officiate at the opening of the InnoCentre. Thank you all for coming today to witness this exciting step in Hong Kong's development as a creative economy.
In today's world, with the advent of information technology and globalisation, economies can no longer compete on low-cost production alone. Consumers are looking for new functions and personalised designs, while manufacturers are focusing on the differentiation of markets and the application of design and technology. In the future, economic competition will come down to innovation and creativity.
These changes necessitate new ways of doing business. Let me give you an example. In 2001, Apple Computer launched the iPod, combining technology with an easy-to-use design. To date, over 42 million iPods have been sold. It is a classic case of leveraging design and technology, the two key elements of success in the post-industrial era. A great many iPods are actually manufactured by OEM factories in the Mainland. But the biggest winner is Apple, whose profits more than doubled last year. With the opening of the InnoCentre, and with Hong Kong seriously stepping up its drive for a creative economy, we can now aim to design and develop new products that are as creative and successful as the iPod, right here in Hong Kong. And to reap the benefits of this creativity.
Indeed, all the key elements of a creative economy already exist in Hong Kong. We have the rule of law, including a strong regime to protect intellectual property. Our economy is the world's freest, ensuring the smooth flow of capital and information. We have the right environment to nurture and attract creative talent, an infrastructure that encourages investment in cultural industries, and a community that appreciates the importance of creativity.
I would go further and suggest that Hong Kong people have creativity hard-wired into their DNA. How else can you explain the transformation of a small fishing village into a manufacturing hub, and then into an international financial and trade centre? Only people with a creative spirit could have reinvented themselves so often in the face of so many challenges. Hong Kong people have a unique history of being at the junction of East and West, of being wide open to the world. As a result, Hong Kong people are habitually receptive to new and creative ideas. Indeed, some of our designers have already excelled in the international arena, making an impact in fashion, architecture and other creative disciplines.
The Hong Kong SAR Government is strongly committed to supporting the creative industries. We promote applied R&D through funding schemes, infrastructure support, collaboration with Mainland and overseas research institutes. We also endeavour to grow an innovation culture in the community. Most recently, we launched five new R&D centres, in which the Government will invest over $2 billion. And we will roll out Science Park Phase 2 starting next year.
We staunchly support the Hong Kong Design Centre, which we believe to be our industry champion of design excellence. In 2004 we launched the $250 million DesignSmart Initiative to promote business adoption of design, and capacity-building in the design profession. Notably, $45 million of DesignSmart funding was earmarked for the development of this InnoCentre, to provide a one-stop shop for the design community, especially small and medium-sized design houses. The focus of the rejuvenated venue is the stylistic staircase and atrium where we are standing. This will provide an ideal venue for fashion shows, design showcases and other lifestyle events.
To make the InnoCentre a magnet for design activities, the Government has earmarked an additional $100 million to support the Hong Kong Design Centre over the coming five years. This will help the Centre to hold exhibitions, conferences, workshops, networking functions and professional education and training courses. We want to promote the adoption of design in the mainstream business process, upgrade the capability of our design profession, and enhance the interface between designers, industry and business users, academics and the like.
Looking ahead, there is plenty of potential for Hong Kong designers to evolve to the next level of business by capitalising on the rapid development of the Mainland. As Mainland enterprises grow, they are becoming more aware of the importance of branding and design, rather than simply manufacturing. Many seek to add value to their products and to build indigenous brands. Domestic demand for quality goods keeps on increasing. Indeed, the huge and rapidly growing Mainland market opens up exciting new opportunities for Hong Kong designers ¡ª as well as new challenges.
I am pleased to see that several more developed Hong Kong-based design companies have responded quickly and have established footholds in major Mainland cities, often through sole proprietorships enabled by CEPA. However, this should only be the start and we must not be complacent. Let me tell you that our Mainland counterparts are catching up quickly. Hong Kong designers need to constantly upgrade. We also need to expand our scope beyond the Pearl River Delta to the entire Mainland. I am sure the Hong Kong Design Centre, with the InnoCentre as its base, will support our designers in developing their expertise and business horizons.
The InnoCentre is the first facility dedicated solely to designers, but no one has a monopoly. I appeal to all business people, designers and citizens to take an interest in this project, and to make suggestions on how to use this facility to its full potential and capacity in the coming years.
I congratulate the Hong Kong Design Centre and the Hong Kong Science and Technology Parks Corporation for taking up this challenging project. And I wish the InnoCentre every success in contributing to the development of Hong Kong's world-class knowledge economy.
Thank you.
Ends/Monday, November 13, 2006
Issued at HKT 17:48
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