55 6.3 Increase Support for Type II Technology and Innovation Industries 6.3.1 From the perspective of innovation economics, through the development of Type II technology and innovation industries, the production efficiency and dynamic efficiency of Hong Kong’s existing enterprises will be improved through innovative technologies, while at the same time also providing a market for the development of Type I technology and innovation industries. 6.3.2 The previous successful case of Hong Kong’s development of Type II technology and innovation industries should be the Octopus Card service, which was co-operated by the MTR, Kowloon-Canton Railway, KMB, CityBus and Hong Kong Ferry. Octopus card provides a revolutionary operation process transformation for public transportation agencies and provides passengers with a new experience that saves time and effort. As Octopus card has been adopted in more and more industries, and technology has been transferred throughout more and more countries and regions, Octopus Cards Limited has become an independent technology company providing electronic payment solutions engaged in Type I technology and innovation industry. 6.3.3 The emergence of technologies such as the Internet of Things, artificial intelligence, big data, cloud computing, robotics, and 5G provide opportunities for Hong Kong to enhance the competitiveness of existing industries. Compared with Type I technology and innovation industries, which focuses on the development of technology, the development threshold of Type II technology and innovation industries, which focuses on applying solutions, is lower. By promoting the development of Type II technology and innovation industries, huge demand for existing and emerging Type I enterprises and start-ups in Hong Kong will be created. The government’s approach to encouraging the Type II technology and innovation industry is mainly to provide existing industries with more incentives for technological transformation and upgrading, such as providing tax concessions for expenditures on technological upgrading of existing enterprises. Technology vouchers previously launched by the government were a good practice, and can be further improved and expanded. Services such as “Industry 4.0” - Smart Enterprise provided by the Hong Kong Productivity Council should also be helpful in promoting the Type II technological innovation. It is a feasible arrangement to use the Hong Kong Productivity Council as the engine promoting the development of Type II technology and innovation industries in Hong Kong. 6.3.4 Figure 6.3 shows the benefits of increasing support for the Type II technology and innovation industries. Figure 6.3 Increase Support for the Type II Technology and Innovation Industries and Its Effects Increase support for the Type II technology and innovation industries Develop the Type II technology and innovation industries: use technology to empower existing industries Technological entrepreneurship of youth in Hong Kong 6 Develop Technology and Innovation Industries and Foster Upward Social Mobility
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