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Hong Kong Science and Technology Park: Turning Tech Startups' Visions into Reality

In October 2018, Hong Kong Science and Technology Parks Corporation (HKSTP) announced a wide array of new initiatives, enhanced programs and support services aimed at strengthening and accelerating the growth of Hong Kong’s Innovation and Technology (I&T) sector and startups.

To support its key strategy of grooming promising technology startups—HKSTP operates effective startup incubation programs to turn innovative ideas into marketable products and solutions.

Blockchain.News sat down with Peter Mok, Head of Incubation and Acceleration Programmes, HKSTP to gain further insight into the Incubation initiative and the custom-made programs, that have been designed to support technology startups, and specifically how they could be utilized by blockchain startups.

First “STEP”

HKSTP currently has three stages of support programs for technology startups. Mok said, “The goal is to support startups beginning from their conception stage all the way to their IPO. It is not necessary for the participants to even have a minimum viable product (MVP) during the application stage; we will start our support from the idea. At each of the three stages of incubation, a financial subsidy is included for the startup.”

The first stage is a year-long program aptly named Science and Technology Entrepreneur Programme (STEP). Mok explained, “STEP is ultimately an idea generation which helps potential startups or even a single founder validate their business plan and theoretically confront the issues that could potentially arise in the market through assimilation training. The participants will also be advised on the government assistance schemes for which they may be eligible. Once this stage is complete, not only will the startup teams know if their idea is viable, but they will also learn what is required of them to do business in this sector. Those that qualify for incubation will enjoy a full range of tailor-made support services and facilities that will help drive their business to the next level of development.”

Core incubation

Once the STEP program is completed, the participants can move to one of the three core incubation programs. Mok said, “The core programs focus more on the MVP—prototyping, commercialization, R&D and the initial market offering.” To qualify for the programs, applicants must be a Hong Kong-registered technology startup company limited by shares and established within no more than 2 years on or before the date of the application. Mok expounded, “The admissions criteria are quite broad, but we really evaluate our applicants based on four major but basic elements – the team combination; the business plan; the level of innovation and of course whether we believe the endeavor has a chance for success.”

Incu-App – a 2-year program aimed at companies and startups focused on electronics, green technology, ICT technology, and material and precision engineering;
Incu-Tech – a 3-year program aimed at technology startups, working in deep tech research, during their inception stages; and
Incu-Bio – a 4-year program aimed at supporting the growth and development of biomedical tech start-ups in Hong Kong.

Three incubation programmes offered in HKSTP. Photo:Wheelock Gallery of HKSTP, Admiralty

Mok highlighted HKSTP’s understanding of the hard work and determination it takes to create the perfect product, application or device especially for those that plan to innovate and change the world we live in. He reiterated, “We aim to provide support every step of the way to help technology startups turn their vision into reality.”

When technology startups are ready to take on the world stage, HKSTP offers the Leading Enterprises Acceleration Programme (LEAP) catering to their needs for global business expansion. The LEAP is designed for startups with viable market products and scalable business model. Mok said, “Upon admission, LEAP acceleratees will enjoy a wide range of world-class support and subsidies, including the support to expand their business into the Greater Bay Area (GBA) market, a cluster of 11 cities with a combined population of 65 million and GDP of USD $1.36 trillion (compared to USD $0.76 trillion for San Francisco Bay). In addition, startups can access funding up to HK$ 4.7 million for subsidies and support from fundraising, business development, and professional services.”

Smart Region for a Smart City

The government of HKSAR published the Smart City Blueprint in December 2017, mapping out a development plan designed to embrace innovation and technology, enhance the effectiveness of city management and improve people’s quality of life.

In response, Hong Kong Science Park, a designated smart region living lab in the blueprint, create the ideal testbed for pushing forward the Smart City vision, leveraging the city’s attributes of dense population, efficiency, world-class ICT infrastructure, and high internet connectivity. Mok explained, “Hong Kong is a very highly developed city with a very dense population who are used to convenience. It’s very difficult, to deploy and test any new technological infrastructure without causing major delays and disruption for the people.”

HKSTP is often described as a ‘living laboratory’ that supports and pilots innovative solutions and fosters the adoption of new technologies. As well as providing a platform and support for innovative university research, those in the Smart Region are exposed to HKSTP’s other partners which include some of Hong Kong’s leading corporations as well as other major global entities. Mok highlighted, “We have partnered with over 63 leading corporations from Hong Kong, and globally, which allows our incubation participants and researchers under the startup scheme to meet with corporate leaders—these include organizations such as the Hong Kong Airport Authority, Cathay Pacific and TLC—fostering a collaborative platform for the technological ecosystem and the business sector as well as the sharing of ideas and the co-creation of data applications to deliver socio-economic benefits.”

The accelerating roadmap

In the future, the HKSTP will continue to strengthen its smart innovation and startup support with the introduction of various acceleration programs and corporate matching initiatives.

HKSTP connects startups to investors. Photo: Wheelock Gallery of HKSTP, Admiralty

“In the past, we were mainly focusing on helping startups in Hong Kong and linking them to corporate industry and we will continue to do so,” said Mok. “But we are also running a lot of new acceleration programs such as the IDM2 Hardware Accelerator— it is a hardware solutions program which IDM2 stands for Ideas to Design for Manufacturing and Marketing. This complements our various incubation programs as 51% of these companies come with their own hardware, so hardware acceleration is a logical next step.”

Another new initiative, the Global Acceleration Academy (GAA) aims to connect high-potential startups with world-class industry leaders and bring their innovations to the real-world marketplace. “The GAA program actually serves as a bridge for the market demands and technology at a very early stage. We go inside the corporations with access to their data. They can express their challenges and customer requirements directly to our start-ups who can create tailor-made solutions.” said Mok. “It’s actually a type of early customer engagement, we are not waiting for customers to tell us what to build, we are innovating ahead of the demand.”

The overarching goal of HKSTP is to become the technological launching pad for all of the Asia Pacific. Mok concluded, “We want the best talent from Asia. Leveraging the traditional gateway position of Hong Kong, our focus will be more on deep technology. We have a world-class research foundation for technology research, especially in the realm of biotech momentum technologies. The strides we have already made will distinguish us from most, if not all of the Asian cities, and draw in the best of best researchers globally.”

Part 2 of the interview is coming up, stay tuned!

Peter Mok image via techgoondu.com

Hong Kong with its Incredibly Unique Positioning in FinTech

In the second part of our interview with Peter Mok, Head of Incubation and Acceleration Programs at the Hong Kong Science and Technology Park (HKSTP), he went into detail on the initiatives they have developed to combat the global talent shortage, bring Hong Kong’s lagging Fintech industry up to speed and he tells us how blockchain startups can leverage the Hong Kong-Shenzhen Innovation and Technology Park.

3 Initiatives to Combat the Global Talent Shortage

Over the last decade, industries across the world have had to contend with the digital disruption of the Fourth Industrial revolution. Big industry had just experienced the global financial crisis and were too busy trying to maintain the status quo to adopt the new technology. The exponential explosion of new innovative technologies has created an equally impressive chasm in the technologically skilled workforce which has contributed significantly to the global talent shortage. In this ever-changing and unpredictable environment, HKSTP has remained committed to growing Hong Kong’s Innovation and Technology (I&T) ecosystem and has relentlessly strived to connect I&T companies with the right talent.

After a few years committed to driving corporate interest in the Hong Kong I&T market, the lack of talent to meet the demand became a severe issue. Mok said, “In Hong Kong, we found an acute lack of talent for areas such as ‘life science’ and ‘IoT’ which are a huge part of our Smart City development. We came up with three main areas of support for our talent—placement training, the Hong Kong Science Park Career Expo and government collaboration.”

The Hong Kong Science Park is not a school and has no set curriculum. Mok expounded, “We don’t hire directly from the market. We work closely with research universities, community colleges and post-secondary colleges such as the Vocational Training Council, to channel their most promising students into the Hong Kong Science Park. Those students will be given a summer placement in a tech-company environment whether it be fintech, blockchain, life science, etc.” He continued, “While there is no set agreement for the company to offer more than a summer internship, the students are often invited to continue working part-time and in the majority of cases will confirm their employment with the organization before they graduate.”

The second support system in place for emerging Hong Kong talent is the annual Hong Kong Science Park Career Expo. This year, the Expo saw its largest turnout with over 13,000 visitors seeking information and new careers with Hong Kong’s growing I&T sector. Mok shared, “Over 1600 positions were offered at the Expo this year by around 150 local and international companies. The four major technology fields (Biomedical Technology, Artificial Intelligence and Machine Learning, Smart City and FinTech) were well represented. The Expo has become a very important event for not only our I&T talent but also talent seeking technology-related positions which are also in high demand.”

HKSTP’s third area of support for I&T talent is research subsidy through two programs created in collaboration with the Hong Kong Government— the Researcher Programme and Postdoctoral Hub Programme. Mok explained, “Every company that resides in the Science Park will be able to apply for up to two researchers in the Researcher Programme and the R&D projects under the “Innovation and Technology Fund” (ITF) can engage up to 2 postdoctoral talent for Postdoctoral programme applications. The Researcher Programme supports park companies to recruit graduates with a Bachelor’s or Postgraduate degree in assisting R&D projects on a full-time basis for 3 years. For Postdoctoral Hub Programme, the park companies can hire PhDs from local or overseas universities. Visa application is often a pain point in recruiting overseas talents. This issue can now be addressed by the Technology Talent Admission Scheme (TechTAS) launched by the government. HKSTP will help the park companies submit the application to facilitate visa applications of overseas talents. He added, “There are no limitations on the nationality of the researchers and through this scheme, we can attract the best researchers both locally and globally.”

Hong Kong’s FinTech position is “Incredibly Unique”

Financial Technology, more commonly referred to as FinTech, looks set to reshape the financial sector in the coming years and presents Hong Kong with both challenges and opportunities. According to various reports, Hong Kong, despite its large financial sector, as of yet has only had a modest showing in the FinTech space and lags behind cities such as Shenzhen, Taipei, and Singapore.

“Hong Kong’s position is incredibly unique when compared to our rival Asian cities. The quality of our economic structure, the free flow of capital and information sets us apart. However, presenting our low-tax rate to a struggling tech startup that has not yet made any revenue is not effective motivation for them to set up their business.” Mok said, “Our STEP programme will help bridge the gap in FinTech, through the support we can offer these tech startups in our ‘Incu-App’ and ‘Incu-Tech’ programs as well as the support-systems I’ve already mentioned. For example, one of our Incu-Tech companies which has only been established for two years is already working with around ten of the largest banks in the world, so we have already had some success.”

Hong Kong’s position as one of the top three global financial centers means that a lot of legacy financial systems are already in place. Mok believes that, eventually, this financial history and experience will allow Hong Kong to overtake its rivals in the FinTech space. “Cities like Shenzhen appear further along, and to some extent they are, but their focus has mainly been on e-payments and e-remittance because they don’t have the legacy systems in areas such as compliance to enhance, they will need to build these systems from the ground up.”

He added, “The Greater Bay Area initiative will also require us to work together and advance together technologically. Competition with the cities in the GBA happens on a daily basis, however, don’t underestimate the potential of collaboration with your partners or competitors. The GBA will allow more collaboration with our neighbors and we can learn from each other.”

Lok Ma Chau Loop: The Tech Gateway for the GBA

The HKSTP’s infrastructure for research and development is world-class and there are plans to continue its expansion but ultimately, they are limited by the space around them. Occupying a strategic location in Hong Kong bordering Shenzhen, the Hong Kong-Shenzhen Innovation and Technology Park in the Lok Ma Chau Loop offers four times as much land area as Hong Kong Science Park, giving Hong Kong’s innovation and technology ecosystem more room to grow.

HKSTP’s infrastructure in facilitating Greater Bay Area collaboration, photo taken in Wheelock Gallery of HKSTP, Admiralty

Size matters but the location matters more to Mok. He explained, “Having a fully integrated Science Park on the Lok Ma Chau Loop is important as it allows us to share our relevant expertise and to tap the supply chain, manufacturing capabilities and talent pool across the border. This sharing of technical knowledge will be critical to the development of the Greater Bay Area.”

Peter Mok image via techgoondu.com

Blockchain and IoT: Transforming Hong Kong into a Smart City

Blockchain and IoT: Transforming Hong Kong into a Smart City

In December of 2016 the Hong Kong Government released the Smart City Blueprint with a vision to develop Hong Kong into a world-class smart city. The key aims of this transformation are to improve the connectivity, efficiency and environment of Hong Kong by leveraging advances in digital information technology and data collection.

While the phenomenal growth of Information and Communication Technologies (ICT) being deployed has provided ubiquitous connectivity and intelligent automation—transforming into a Smart City demands attention and cooperation from businesses and the public as significant resources are required to support the new infrastructure. One such technology that will prove vital in this cooperation of many actors is blockchain and specifically the way it interacts with the Internet of Things (IoT).Blockchain

Blockchain is a distributed ledger technology (DLT) which was originally created as a way to support cryptocurrencies, namely Bitcoin, but its real-world applications have spread far beyond the coin-sphere. Ultimately, what blockchain technology does is create an encrypted and decentralized ledger or data storage structure that shares information utilizing peer-to-peer networks and provides instantaneous updates to every single party involved. As the name implies, blockchain is literally a chain of digital blocks that contain records and transactions. Each block is connected to the ones before and after it. This makes it very difficult to change a single record as a hacker would need to change the block containing the record and as well as those linked to it to avoid detection. The records on a blockchain are secured through cryptography. Network participants have their own private keys that have a personal digital signature. If a record is altered, the signature will become invalid and the peer network will know immediately that something has happened. Blockchains are decentralized and distributed across peer-to-peer networks that are continually updated and kept in sync. Because they are decentralized, blockchains have no single point of failure and cannot be changed from a single computer. It would require massive amounts of computing power to access every instance (or at least a 51 percent majority) of a certain blockchain and alter them all at the same time. Internet of Things (IoT)

As the world continues to innovate and globalize, connectivity has never been easier and we are starting to see more and more things have the ability to connect to the internet. IoT , put simply, is the idea of basically connecting any device with an on and off switch to the Internet — and sometimes to each other. This includes everything from mobile phones, cars, headphones, refrigerators, and host of others. As of Aug 2018, there are 5 billion connected devices, expect to reach 29 billion by 2022(NCBI, 2018). Softbank CEO Masayoshi Son predicts 1 trillion devices for IoT in next 20 years.

As Hong Kong is being thrust into a state of unprecedented growth to achieve its Smart City vision, major challenges follow as it seeks to enhance its sustainability, population’s health, environmental impact, and safety. The Internet of Things (IoT) offers new opportunities for Hong Kong to use data to manage traffic, cut pollution, make better use of infrastructure and keep citizens safe and healthy.Blockchain and IoT

The communication between these devices with each other and the internet can be facilitated through blockchain technology— which allows for a list of interactions between the devices and the internet. A blockchain platform at the center of an advanced Smart City could keep track of not only which devices interact with each other and the internet, but also what is being done through each interaction. As blockchain was designed as a basis for applications that involve transactions and interactions, it pairs perfectly with the management of IoT data.Some of the ways in which blockchain can actually improve connectivity and IoT is through the utilization of smart contracts. These smart contracts rely on automation to speed up and streamline the contractual processes and are carried out when a specific condition is met. For example, in the construction industry, project managers could set up a system that self-executes payments to contractors and eliminate the current gaps and delays that hold construction up at various stages. In a broader sense, it could be regarding the conditions of goods, environmental conditions, or any other smart application that supports specific Internet of Things processes. The inherent security and transparency that blockchain platforms offers can not only just improve compliance in the IoT but also its interactional features and cost-efficiency as well.

Blockchain technology solves many issues when it comes to enabling peer-to-peer contractual behavior without any third party to “certify” IoT transactions. Some of the biggest issues include scalability, the threat of single-point failure, time stamping, and securing transactions. This is where blockchain technology comes into play, essentially offering a consistent solution to each of these issues. Smart City Blockchain ImplementationIn the September edition of Smart Vision Magazine, which is published by the Smart City Consortium (SCC), Jase Leung, CEO & Founder, Blockchain Solutions Limited, highlighted the technology’s potential in his article, ‘Smart City: How blockchain shapes Hong Kong future’. Below are two examples of turnkey solutions in blockchain and IoT that his company is currently implementing in the spirit of Smart City:

– CertAuth (Education and Human Resources)—a cross-certification platform that verifies authenticity of academic transcripts to combat forged educational and professional certifications, which are on the rise due to high demands and competition of the job-market. CertAuth aims to enhances security, reduce recruitment processes and ensure the authenticity of Hong Kong’s skilled workforce.

– CARMOB (Transportation & Insurance)—partnering with a local taxi-leasing company, a tailor-made onboard diagnostics device records and uploads the taxi’s data to the blockchain which is then analyzed to determine the driver’s attitudes and patterns. Based on these data insights, taxi owners and insurance companies can make more informed decisions regarding the driver’s lease and insurance eligibility.

HK Institutions Dedicated to Smart Evolution

Hong Kong Science and Technology Park (HKSTP)HKSTP have set up Hong Kong’s first Smart Region, creating the ideal testbed for pushing forward the Smart City vision, leveraging the city’s attributes of dense population, efficiency, world-class ICT infrastructure and high internet connectivity. Within the Smart Region, incubation programmes are financed and supported for FinTech and Blockchain Startups. The core incubation programs are:

– Incu-App–a 2-year program aimed at companies and startups focused on electronics, green technology, ICT technology and material and precision engineering;

– Incu-tech—a 3-year program aimed at technology startups, working in deep tech research, during their inception stages; and

– Incu-bio—a 4-year program aimed at supporting the growth and development of biomedical tech start-ups in Hong Kong.

Peter Mok, Head of Incubation and Acceleration Programs, HKSTP explained, “HKSTP currently has three stages of support programs for technology startups. Mok said, “The goal is to support startups beginning from their conception stage all the way to their IPO. It is not necessary for the participants to even have a minimum viable product (MVP) during the application stage; we will start our support from the idea. At each of the three stages of incubation, a financial subsidy is included for the startup.” He continued, “The Government has funded over 250 startup projects by the six research universities and around 200 of them have received a three-year research grant, we will admit 100 of them into incubation at the Smart Region of HKSTP.”

CyberportMoving away from the focus on FinTech, Blockchain and IoT are also being leveraged to enhance Hong Kong’s global attraction and develop future world events. Cyberport has a cluster of start-ups focusing on e-sports. This sector is touted as an emerging billion-dollar industry and the start-ups in this cluster have also received government grants.

Charles Lam, Senior Manager, FinTech & Blockchain Cluster, Clusters Teams spoke on the development, “Teams from all over the world will fly in and compete. Companies such as Tencent – 51% of their revenue actually comes from the gaming industry.”

As these games currently have not been built on blockchain, Lam explains the benefits of the technology, “Currently, if you delete the data and delete the players, then everything they have invested will be gone for good. If they decide to build the game on a blockchain platform, all the tools could be sold like a virtual asset. If the platform would run on a blockchain, then these games would truly be global.” This could create a “big ripple” in the gaming industry and Lam added, “that would truly be liberating for Hong Kong.”

See For Yourself – Hong Kong Electronics FairFrom the 13 – 16 of October the Hong Kong Convention and Exhibition Centre will host the 39th HKTDC Hong Kong Electronics Fair (Autumn Edition) and 23rd electronicAsia events which will be held concurrently. The two fairs will gather around 4,300 exhibitors from across the globe, showcasing a wide variety of intelligent products, innovative start-up ideas, and electronic components.We recommend going along to two of the key forums—“Blockchain in Industrial IoT – The next big thing?” on 13 October, and the Hong Kong Electronic Forum to discuss advanced robotics, MicoLED trends, and applications for electronics products on 15 October.

Image via Shutterstock

EPC Blockchain among 16 Startups Selected to Join EY Incubator

Big four accounting firm Ernst & Young (EY) has selected 16 early-stage startups to join its EY Foundry Cohort 5 program to propel disruptive solutions in four areas: sustainability, new enterprise, people and wellness, and services of tomorrow.

EPC Blockchain, a Malaysian-based firm, is among those chosen, and it utilizes blockchain technology to record energy investments needed when crowdfunding energy projects. As a result, it tackles the challenge of climate change through public mitigation.

EPC Blockchain also enables small project developers to monetize carbon credits from energy projects.

From this month, EY will conduct the six-month incubator program virtually, with participants benefitting from $150,000 in Microsoft Azure credits to enhance their technology stack.

Eight startups are from Southeast Asia, whereas the rest are from Australia. Per the announcement:

“They will gain exposure to a wealth of industry knowledge and experience, including access to EY industry insights, subject matter professionals and technology collaborators. The EY Foundry program takes no equity stake, with participating startups maintaining full ownership and control of the business.”

EY sees the partnership with startups as a stepping stone toward boosting the pipeline of entrepreneurial talent and enhancing the creation of future jobs and businesses.

Farah Rosley, Malaysia Tax Managing Partner, Ernst & Young Tax Consultants, added:

“We are looking forward to collaborating with these disruptive technology startups to continue supporting the future of technology and business growth and improve how we service our people and help deliver greater value to our clients and the future of talent.”

Nurturing talent is emerging as a favoured strategy needed to spur innovation. For instance, Ripple, a leader in enterprise crypto and blockchain solutions, recently opened a key engineering hub in Toronto, Canada, to enhance crypto innovation and growth, Blockchain.News reported.

KuCoin Labs Rolls Out Incubation Program with Univers Network to Boost Web3 Exploration

KuCoin Labs, the incubation and investment arm of crypto exchange KuCoin, has launched an incubation program with Univers Network to aid the exploration of the Web3 space.

Lou YU, the head of KuCoin Labs, pointed out:

“KuCoin Labs aims to enhance Web-2 entrepreneurs’ understanding and adoption of Web-3. KuCoin Labs is advising Univers Network in various aspects, sharing knowledge regarding Web-3 community incentives, technical structures, business strategy, marketing orientations, fundraising, as well as go-to-market plans, etc.”

As a metaverse infrastructure project aimed at revolutionizing Web3 and empowering communities, Univers Network comprises more than 50 developers currently creating an SDK for metaverse interconnectivity.

The incubation program also seeks to bridge the gap between E-Sports and blockchain technology, given that one of the primary objectives of the Univers Network is the unification of game engines.

Per the report:

“The Univers Network is developing a proprietary mechanism called ‘Choose-to-Earn’, which will connect developers and users while creating value for the user bases of both projects involved. Its Decentralized Publishing Company (DPC) will be launched later this year, with additional projects and development studios to be involved in their ecosystem.”

Through the strategic partnership with Univers Network, KuCoin Labs seeks to have the resources and scalability to be a leading metaverse and innovative infrastructure solution.

Crypto exchange KuCoin has shown its commitment to enhancing Web3 exploration, given that it recently rolled out a decentralized product dubbed KuCoin Wallet, Blockchain.News reported.

The wallet supported multi-chain aggregation powered by the KuCoin ecosystem. As a result, users can create a decentralized account for Web 3.0 in seconds and send, receive, and store BTC, ETH, USDT, USDC, BNB, and more tokens in one place.