Blessed by its strategic location, robust legal system and business-friendly environment, Hong Kong has regained its position as
Asia’s top and the world’s third-ranking financial centre in 2024. However, to revitalise the economic ecosystem beyond the financial sector, Hong Kong should leverage its unique strengths embedded in the textile industry to develop innovative start-ups.
To foster innovation, the Hong Kong government developed initiatives such as the Innovation and Technology Fund and set up the Innovation, Technology and Industry Bureau. These developments aim to support research and development and promote technological advancements.
To cultivate technology start-ups, the Hong Kong government has allocated funding and resources in the latest financial budget for R&D, talent cultivation and easing investment through initiatives like the
Cyberport and Hong Kong Science Park incubation programmes.
These government initiatives are yielding positive results. Hong Kong’s start-up ecosystem has flourished in recent years. The number of start-ups has increased from 3,184 in 2019 to 4,257 in 2023. These start-ups span various sectors including, fintech, biotech and logistics.
Notable Hong Kong unicorns that have been valued at US$1 billion or more include
Lalamove, a logistics company specialising in on-demand and same-day delivery, which has raised over US$2 billion in funding;
Klook, a travel and leisure booking platform that connects travellers with experiences and attractions worldwide with around US$941 million in funding; and
WeLab, a fintech company providing virtual banking and consumer lending services with at least US$900 million in funding.
These start-ups certainly created jobs and contributed to Hong Kong’s reputation as a hub for innovation and technology. However, the long-term success of these start-ups remains to be seen, as similar competing start-ups can be established elsewhere, such as Singapore, which has similar institutions to support innovation such as its Economic Development Board.
