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Science park green technology study | hong kong
Science park green technology study | hong kong
This study explored the potential to develop Hong Kong's "Green Technology" economy via the Hong Kong Science Park, a government funded project that incubates and commercializes research and development as part of a broader economic development strategy. The study involved defining the ecosystem of green industries and evaluating Hong Kong, the Pearl River Delta, and broader China's potential for developing this sector. A detailed SWOT Analysis was conducted across sectors and subsectors to help identify specific areas of focus. A structured decision making process was utilized to sort and filter the options in a defensible and documented way. Specific companies were identified as targets based on their relationship to target sectors, position in the value chain, and country of origin. Surveys and interviews with industry leaders were conducted for key insights and broad spatial (lab vs office), equipment, and support needs were identified. Marketing strategies were also outlined.
Role: Brian Jennett led this effort and performed most of the work while a Senior Economist at AECOM Hong Kong.
An Unsustainable Situation, but Great Potential
•China’s Economic Growth has come at the expense of significant environmental problems.
•Hong Kong has contributed to this issue, but also has a direct stake in fixing it: its air, water, quality of life, and ability to attract businesses are all directly impacted
•Hong Kong’s ecological footprint will inevitably remain large, but so is its potential to effect change, at home, throughout China, and beyond
Hong Kong Science Park as a Catalyst for Change
•Within the greentech sector, there is a need for primary research, applied research, and commercialization
•HKSP is perhaps the only location which combines the necessary entrepreneurialism, capital, legal protections, and science with direct cultural, language, education, and employment links to the mainland
HKSP as a Green Tech Cluster
•HKSP intends to strengthen its position as a center for “Green Technology” by applying what is known in economic development as a ‘cluster concept’.
•A ‘cluster’ is defined as a geographic concentration of interconnected firms, suppliers, and associated institutions in a particular field, where enough resources and competencies amass to give the location a decisive, sustainable, competitive advantage over other places, at least in that sector.
•To meet this goal, HKSP intends to provide subsidized facilities, financing incentives, coordinated marketing efforts, and opportunities for networking (with clients, research universities, banks) to key tenants that can encourage cutting-edge technical development to drive the local, regional and international green economy forward.
An Unsustainable Situation, but Great Potential
China’s recent economic growth has been dramatic, and it continues to scale new heights: it recently became the second largest economy in the world. But this ascent raises concerns amongst many as to whether this pace of growth, and the method by which it is being achieved, is sustainable. Economic development without proper environmental regulations has led to significant damage in both urban and industrial areas. Both air and water are heavily polluted, causing localized health problems; in addition, China has become the world’s largest producer of climate change-related gases, which threatens the planet as a whole. Hastily drafted legislation is being passed to rein in the poor practices that have caused these problems, but the technologies and the institutional capacity to clean up and/or prevent pollution are still insufficient.
Hong Kong is linked to this situation in several ways. First, it is one of the causes: China’s most significant manufacturing base is in the Pearl River Delta – and the majority of the factories in this area are owned and operated by Hong Kong residents. Second, the pollution from these factories affects both sides of the border; the quality of Hong Kong’s air and water is directly affected by its neighbor. Third, Hong Kong already has localized environmental challenges of its own, which have arisen as a result of rapid urbanization, a growth pattern focused on very dense and compact areas, and many of the consumption/waste patterns of a modern society.
Hong Kong’s dependency on external resources results in an ecological footprint that extends well beyond its boundaries: the vast majority of the city’s energy, water and food resources, as well as its consumer goods, come from elsewhere. As a port city with mostly service sector jobs related to trade, consulting, and finance - its economy also depends heavily on the transport sector, which remains one of the greatest sources of greenhouse gas generation. This likely far outweighs the reduced environmental impacts from the public’s elevated use of public transit.
Since the economic role of the city is dependent on globalization, the city’s environmental impact is likely to remain quite large. However, all the above factors, combined with the city’s role as a crossroads for culture, language, education, and law, as well as trade and finance, means that the city also has a much greater potential to exert a positive influence on the implementation of green ideas. This is particularly true since the city occupies a prime position coordinating and mediating between the “world’s factory” (China, its largest producer and polluter) and its consumer societies (the developed world).
Hong Kong Science Park as a Catalyst for Change
There is growing awareness of our environmental impacts, the problems they cause, and the potentially short window of time we may have in terms of effecting positive change. One part of the solution is to develop new technologies that can help to reduce consumption, waste, and their associated environmental impacts (primary research). Another part is taking existing technologies, making them affordable and reliable, and perhaps localizing them for different situations in different countries (applied research). A final part is the commercialization process and the dissemination of ideas. All of these are areas where Hong Kong Science Park can play a role: combining high quality scientific research with the skills and support services needed for astute commercial application.
Hong Kong Science Park (HKSP) has the potential to be a very important catalyst for change. It occupies a nexus of entrepreneurialism, capital, legal protections, and science. China represents perhaps the world’s largest environmental problem, but this means it is also the biggest opportunity for environmental solutions. Positioning the Science Park as a hub for green technologies is timely and logical, because the location is so strategic. The Science Park benefits from significant cultural, language, and business connections with the mainland. Its main competition (the mainland itself) suffers from a lack of legal/IP protections.
It is obvious that Science Park wants to maximize the positive impact it can have in terms of fostering positive environmental change, as well as promoting other goals of economic development and diversification. In order for this the happen, it needs to be selective about the activities and tenants it supports, and related to this, it needs to be strategic about the facilities it develops. The first step in this process is contained within this report: an assessment of the “green economy” overall to understand the areas and causes of growth, and an assessment of the local and regional economies to determine their strengths in relation to where the opportunities are greatest. The report concludes with recommendations regarding where the Science Park should focus its efforts, and why. It is meant as a decision tool for planning, design, and marketing of the facilities planned for Phase 3.
The “green economy” consists of any revenue-generating product, service or activity that reduces or minimizes energy consumption and/or improves the quality of the environment. However, it is ultimately impossible to measure or quantify: there are a number of industries that involve green activities, and the majority of businesses that offer green products and services do so as part of a larger range of offerings. When people speak of the “green economy”, they must recognize that it is no longer a separate group of new industries, companies, or job positions, but rather an overlay over the entire economy.
The green economy is constantly shifting as a result of where the science is most developed, the expected benefits are perceived, the impact of policy and incentives is greatest, and the economic returns have the most potential. At present, because of the projected economic and environmental returns, clean energy is broadly recognized as being at the heart of the sector. Alternative energy sources such as wind, solar, renewables, and waste are all being explored, as are energy efficient technologies for buildings, infrastructure and transportation.
At the government level, the “greentech sector” is now seen as a key potential source of future economic growth – so it is being promoted through policy incentives, regulatory support, and in some cases financing for R&D. At the level of private enterprise, greentech is seen as a way to innovate, reduce costs, capture market share, and demonstrate good corporate responsibility.
In this review, the current strengths and future potential of different green economy sectors have been considered and assessed against a series of tangible and intangible location and economic impact factors.
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