An increasing number of top university graduates in Hong Kong are choosing to become entrepreneurs, and this is a heartening phenomenon for Peter YAN, Chief Executive Officer of Hong Kong Cyberport Management Co Ltd (Cyberport).
The entrepreneurial spirit has been an important asset to Hong Kong, having built and rejuvenated the economy in previous generations. “Hong Kong has what we have today because of the entrepreneurial spirit upheld by our older generations,” Yan says.
Cyberport manages a leading technology park which plays a key role in incubating and supporting the growth of Hong Kong’s startup ecosystem. Yan took the helm of Cyberport in early 2018, having spent over 30 years in the information technology industry. Before his appointment as CEO, he served on the Cyberport Board of Directors for six years.
Yan believes that top university graduates who become entrepreneurs gain an advantage from a broader experience of life. The many programs and resources available from Cyberport, along with those offered by the government and private sector stakeholders, are working to build an ecosystem that can support those experiences.
Cyberport offers funding, rent-free office space, and essential support for young entrepreneurs under its programs. Regardless of the success of the businesses, graduates can gain valuable experience at minimal risk. This is a “no-lose situation” for graduates and could mean a “bright future” for Hong Kong, he says.
Unicorns in Hong Kong
Cyberport is focusing its programs and resources on nurturing startups in six key areas. This includes three business application clusters (fintech, smart living, esports & digital entertainment) and three areas of technological development (artificial intelligence & big data, blockchain and cybersecurity).
Yan foresees that several homegrown Hong Kong unicorns may emerge from these six areas over the coming years. “We have had four unicorns at Cyberport in the past two years,” he says. “In a few years’ time we will probably have more than ten, if the macro environment stays strong.”
Part of Yan’s vision is for Cyberport to become a technology theme park, where the latest technologies, gadgets and ready-to-market solutions can be showcased to the public and to relevant stakeholders. Cyberport already hosts startup solutions on its premises, including, among others, intelligent vending machines at the Smart Living Concept Store, and smart mirrors in the Cyberport fitness center (in which virtual trainers can teach users to work out). The idea is to integrate new business models into the daily operations of the Cyberport campus so that startups may gain invaluable experience in the real-life operations of their product, while Cyberport visitors and tenants can enjoy the innovative solutions on its premises.
Plans to expand this innovation breeding ground have been set in motion. As announced in the HKSAR Government’s 2019-20 budget, HK$5.5 billion funding has been earmarked for Cyberport, which plans to expand significantly in the coming years. Phase 5 of Cyberport will add 66,000 square meters of gross floor area (GFA) to its existing 119,000 square meters of office space. This will include new facilities such as offices, co-working spaces, conference venues and a data service platform.
The current waterfront park will also be expanded and enhanced with smart technologies. These expansion plans will be completed by 2024.
Cross-disciplinary talent
Beyond the necessary infrastructure, funding and support services, Hong Kong’s tech and startup ecosystem can only be successful if the relevant talent is available. Yan is optimistic on this regard. “The talent we need for the new economy are cross-disciplinary and technology-savvy. Hong Kong’s universities are already cultivating cross-disciplinary talent,” Yan says.
For example, in the fintech sector, you often find talent that are able to combine technological know-how with their knowledge of the financial industry to create new business opportunities or new digital assets.
“There are many opportunities available for those who innovate new business models. You can, for instance, take mature technology and apply it in an innovative way,” Yan suggests. “At HKUST, there may be opportunities for faculty from the business and engineering schools to join forces for further collaboration.”
5G and Internet of Things (IoT) is another example of development and designing across disciplines.
“If you want to take advantage of new technology like 5G IoT, you can’t box yourself within the borders of technology,” Yan adds. “5G IoT may be very technical, but intelligent devices have a lot to do with the user experience, and rely on the combined knowledge from the fields of both technology and UX/UI design.”
Taking the next step forward
“The Hong Kong tech ecosystem has ample opportunities to grow,” Yan says.
On a macro level, the Greater Bay Area (GBA) economic development plan and the Belt and Road Initiative present opportunities for Hong Kong. They play to the strengths of Hong Kong, a city that has always been a bridge between East and West, and a connector to opportunities and resources.
Hong Kong has the opportunity to attract innovation and technology companies from neighboring cities like Guangdong. These companies can use the SAR as a springboard to access overseas markets, while the SAR can offer a platform for overseas innovators to use Hong Kong to access the GBA or the China market.
The question is whether the relevant stakeholders are ready to take advantage of these opportunities. “If we do not seize these opportunities, we might lag behind,” he says.
Yan believes we can avoid losing out by ensuring the coordination necessary to take advantage of these opportunities is there. Cyberport is working closely with private stakeholders and public entities such as Science Park, as well as the five Hong Kong R&D Centers (namely the Logistics and Supply Chain MultiTech R&D Centre, Hong Kong Productivity Council, Hong Kong Applied Science and Technology Research Institute, Hong Kong Research Institute of Textiles and Apparel and UST’s own Nano and Advanced Materials Institute), to make sure startups find the right investors, subsidies, programs and services they need to succeed.
“We just need to connect the right people, and Hong Kong has always been good at that,” Yan says. When it comes to developing Hong Kong’s Innovation and Technology ecosystem, synergy is key.
“The talent we need for the new economy are cross-disciplinary and technology-savvy.”
Peter Yan, Chief Executive Officer of Cyberport
About Cyberport
- An innovative digital community with some 1400 digital tech companies
- Managed by Hong Kong Cyberport Management Company Limited, which is wholly owned by the Hong Kong SAR Government.
- 3 application clusters: Fintech, Smart Living, Esports & Digital Entertainment; and 3 technology clusters: AI & Big Data, Blockchain, Cybersecurity