3 SUMMER 2025 NO.98 / THOUGHT LEADERSHIP BRIEF The government matching fund is not available every year. Table 1 illustrates the fundraising situation of universities in 2018/19 and 2019/20. Due to social unrest and the COVID-19 epidemic in these two years, the donations received by universities were averaged. It is evident that if the government continues to provide the matching fund, a similar situation can be expected, as seen in the past. Implementing policy adjustments to efficiently utilize resources and embrace an "output-thinking" approach is proposed. We suggest dividing the matching fund into two parts to address different aspects of university development. Firstly, 50% of the funds should follow the existing method and be matched based on the donations raised by universities. This approach will continue to encourage a culture of social donation to education, fostering philanthropic support for universities in Hong Kong. Secondly, the remaining 50% of the matching fund should be allocated based on financial income generated from universities’ scientific research results and knowledge transfer. This allocation will promote the commercialization of scientific and technological achievements, facilitating the practical application and economic impact of research outcomes. To further enhance the impact of this portion of the matching fund, it should be divided into two sub-parts. Half of the allocated funds should be dedicated as an angel fund to support entrepreneurship and innovation activities by scholars and college students. This will provide crucial financial support for turning innovative ideas into viable business ventures. The other half of the funds should be allocated to universities autonomously, allowing them to strengthen incentives and initiatives to participate in the matching fund scheme. This autonomy will enable universities to develop tailored strategies that align with their specific strengths and priorities, promoting a competitive environment that encourages active participation in knowledge transfer and technological commercialization. By implementing these adjustments, the government can foster a more comprehensive and dynamic approach to university development. This approach will not only continue to promote philanthropy in education but also incentivize commercialization and entrepreneurship, creating a favourable ecosystem for innovation and technology transfer within the academic community. Table 1. The Amount of Donations Received by Hong Kong’s Universities from 2018 to 2020 Figure 2. Distribution Method of University Matching Fund 2018/19 2019/20 Average Chinese University of Hong Kong 760,000,000 1,308,000,000 1,034,000,000 University of Hong Kong 440,000,000 1,230,000,000 835,000,000 Hong Kong University of Science and Technology 62,000,000 740,000,000 401,000,000 Hong Kong Polytechnic University 240,000,000 390,000,000 315,000,000 City University of Hong Kong 48,370,000 380,000,000 214,185,000 Hong Kong Baptist University 81,280,000 310,000,000 195,640,000 Lingnan University of Hong Kong 26,000,000 204,000,000 115,000,000 Education University of Hong Kong 52,070,000 120,000,000 86,035,000 The reformed matching fund should consider the financial income derived from various aspects of knowledge transfer, including not only income from the transfer of intellectual property rights such as patents but also income from contract research and consulting projects. This broader inclusion will provide a more comprehensive assessment of universities’ engagement in knowledge transfer activities. Furthermore, to encourage universities to prioritize collaborations with local companies in Hong Kong, the income from knowledge transfer to local enterprises can be double the matching value. For instance, when transferring one HKD to a general enterprise, one HKD can be matched; whereas, when transferring one HKD to a local enterprise, two HKD can be matched. 50% 50% 50% 50% Match by funds obtained from knowledge transfer Match according to donations raised by universities Matching Fund Angel funding Self-use by universities Promote entrepreneurial innovation activities Enhance incentives for universities to participate in the matching fund scheme Promote the successful commercialization of technologies Promote the culture of social donation to education
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