Public policy bulletin (First Issue - June 2022)

3 Table 1 Opportunities for Policy Collaboration between Hong Kong and Shenzhen Collaboration areas Involved agencies (HK) Involved agencies (SZ) 1. Cross-border talent recruitment: There is significant potential for the two cities to collaborate in enhancing the cross-border mobi l ity of science, technology, and innovation talents. One example is the joint science and technology park between the two cities, the "Lok Ma Chau Loop". ● Hong Kong Immigration Department ● Hong Kong Science & Technology Park Corporation ● Cyberport ● Shenzhen Municipal Science, Technology, and Innovation Commission ● Shenzhen Municipal Human Resources and Social Security Bureau 2. Joint R&D in sc ience, technology , and innovation: There are remarkable prospects for collaboration between Hong Kong and Shenzhen to complement their comparative advantages, e.g. , crossborder institutional linkages between universities and industries (Wang et al. 2021) and an integrated information platform for bridging information gaps regarding science, technology , and innovation-related opportunities. ● Innovation and Technology Fund ● Applied Science & Technology Research Institute ● Automotive Parts and Accessory Systems R&D Center ● Nanotechnology and Advanced Materials Institute ● Hong Kong Research Institute of Textiles and Apparel ● Hong Kong Productivity Council ● Logistics and Supply Chain MultiTech R&D Center ● Research Grants Council ● Shenzhen Municipal Science, Technology, and Innovation Commission 3. Cross-border technology adopt ion: Technology adoption across these two cities constitutes another promising area for col laboration. Governments could encourage technology adoption among firms. Cross-border authorities could review social and institutional proximi ty and ident i fy strategies to reduce intercultural, infrastructural, and regulatory differences. ● Hong Kong Productivity Council ● Innovation and Technology Fund ● Trade and Industry Department ● Hong Kong Export Credit and Insurance Corporation ● Hong Kong Mortgage Corporation ● Office of the Government Chief Information Officer ● Hong Kong Monetary Authority ● Shenzhen Municipal Small and Medium Enterprise Service Bureau ● Shenzhen Municipal Development and Reform Commission ● Shenzhen Municipal Economic, Trade, and Information Commission 4. Support for start-up development : These two cities can extend existing policies to promote cross-border startups, e.g., the Cyberport Guangdong– Hong Kong Young Entrepreneur Program, the HKSTP Co-Working Space Mainland Collaboration Program, the Technology Business Incubator Support Program, and the Maker Enterprise Project Funding Program. ● Cyberport ● Hong Kong Science & Technology Park Corporation ● Hong Kong Design Center ● Hong Kong Mortgage Corporation ● CreateHK ● Hong Kong Monetary Authority ● Shenzhen Municipal Science, Technology, and Innovation Commission ● Shenzhen Municipal Human Resources and Social Security Bureau We also highlighted three main challenges to be tackled regarding the above-mentioned areas with the potential for collaboration: 1. Interagency coordination: The primary obstacle is the lack of coordination across the fragmented government agencies in Hong Kong relating to innovation policies, e.g., the number of agencies involved in the four potential collaboration areas is eighteen in Hong Kong but only five in Shenzhen. The government needs to establish clearly defined policy directions and a reasonable division of duties across agencies. Moreover, external coordination with Shenzhen is also imperative. 2. Institutional distance: There is considerable divergence between the two cities regarding institution-related factors, such as legal systems, taxation regimes, political-economic systems, treatment of IPR, technology and product standardization, certification processes, and more. Infrastructural and administrative reforms are necessary to narrow these gaps. 3. Mutual trust: Vast di fferences between institutional and social environments in Hong Kong and Mainland China make it challenging to establish mutual trust. Mental and cultural Innovation policies in the Greater Bay Area: Hong Kong and Shenzhen P u b l i c P o l i c y BULLETIN