HK’s path of new industrialization: scaling support for start-ups | FHKI Industry Connect | Dr Steve Chuang, Honorary FHKI President, HKNIDA Chairman

Hong Kong has long been an attractive base for start-ups, underpinned by its low tax regime, robust financial system, free trade environment, professional services, and its crucial role within the Greater Bay Area. Leveraging these strengths and the government’s effort in promoting new industrialization and I&T development, the number of start-ups in Hong Kong reached a record 5,221 in 2025.
Yet, quantity is only the first step; successful incubation within the framework of new industrialization requires sustained momentum.

Many start-ups face multifaceted challenges, including early-stage financing, professional services support, and insufficient assistance to transform R&D outcomes, underscoring the need for a well-functioning ecosystem. The New Industrialisation Elite Enterprises Nurturing Scheme proposed in the 2026-27 Budget is a compelling development that reinforces our confidence in this trajectory. By providing structured support to targeted high-growth enterprises, the scheme creates a clear pathway for the development of new industrialization. This strategic commitment to nurturing emerging industry enterprises ensures that Hong Kong’s most promising pioneers can bridge the gap between innovation and commercial success.

The future of Hong Kong’s economy depends on nurturing “industries of the future” that empower high-growth, tech-driven enterprises to thrive and ascend into the ranks of global unicorns. Beyond easing initial operating pressures through funding schemes and preferential policies, sustained success will rely on a more holistic nurturing approach that provides comprehensive, one-stop support. This includes mentorship, market development, infrastructure matching, and resource synchronization, enabling companies to commit to long-term investment and advance their core R&D capabilities.

Synergy among the government, industry, academia, research, and investment sectors is essential for building this foundation. The Hong Kong New Industrialisation Development Alliance serves precisely this objective by providing a collaborative platform that connects key stakeholders. Through HKNIDA, start-ups and researchers can access academic talent, align R&D directions with industry needs, and secure long-term investment and support for the transformation of R&D results. By lowering entry barriers and improving access to partners and professional services, these initiatives significantly increase the likelihood of success for the next generation of industrialists.
Complementing this ecosystem is the strategic cultivation of industries with strong growth and competitive potential. The FHKI report Made by Hong Kong: Strategies for New Industrialisation shows that the local industry accounted for 4.4 percent of GDP in 2023, including 1.4 percent from the new industries, while the value-added of the latter is expected to accelerate. The report recommends prioritizing high-end manufacturing in strategic sectors such as advanced materials and electronics, big health, and food technology – areas well aligned with Hong Kong’s existing strengths and capable of supporting producer services.

As Hong Kong stands at a pivotal moment in its economic transformation, long-term commitment, coordinated policy planning, and tolerance for early-stage risk from both public and private capital are essential. With support from the National 15th Five-Year Plan, HKSAR Government initiatives, and the rapid development of the Northern Metropolis, Hong Kong has a timely opportunity to strengthen its innovation ecosystem, scale start-ups, and advance its vision of becoming an international I&T hub.

FHKI is a statutory body with over 2,000 members in Hong Kong from 33 industry groups set up through a legislative procedure, over 1000 members in the GBA, and over 100 members in ASEAN.