How to Become a Creative City?

Stephen Yan-Leung Cheung

City University of Hong Kong

Content

1. The needs for innovation

2. How innovative Hong Kong is?

3. Ways forward

Foundations of Past Successful

• Stable macro-economic environment

• More open economy

• High saving and investment rates

• Educated work force

Changes

• Economic Role of China

• Sources of Growth

Implications for Development Policy

• Innovations are needed

• How Hong Kong will cultivate creatively within our economy

Knowledge Assessment Methodology (World Bank)

• Performance Indicators

• Economic Incentives and Institutional Regime

• Education and Human Resources

• Innovation System

• Information Infrastructure

Basic Scorecard: Hong Kong (I)

Source: World Bank: 2004 Knowledge Assessment Methodology

0 1 2 3 4 5 6 7 8 9

Knowledge Economy Index

Econ. Incentive Regime

Education

Innovation

Information Infrastructure

Average Annual GDP growth (%)

Human Development Index

Tariff & nontariff barriers

Regulatory QualityRule of Law

Researchers in R&D / mil. pop.

Scientific and technical journal articles / mil. pop.

Patent applications granted by the USPTO / mil pop.

Adult literacy rate (% age 15 and above)

Secondary enrollment

Tertiary enrollment

Telephones per 1,000 (mainlines + mobiles) Computers per 1,000

Internet users per 10,000

Basic Scorecard: Hong Kong (II)

Source: World Bank: 2004 Knowledge Assessment Methodology

0 1 2 3 4 5 6 7 8 9

Singapore1995

Taiwan1995

Hong Kong1995

Korea1995

East Asia1995

Malaysia1995

Thailand1995

Philippines1995

China1995

Indonesia1995

Vietnam1995

Econ. Incentive Regime Innovation Education Information Infrastructure

Knowledge Economy Index

Source: World Bank: 2004 Knowledge Assessment Methodology

Ingredients

• Human Capital

• Investment

Ingredients

• Human Capital (才 )

• Investment (財 )

Human Capital

1. Education• 3+3+4• Creative abilities• Student participation• Questioning• Debate

2. Import talented people

Research and Development

• Role of Government• Role of private sector• Role of universities• Participation of intellectual property rights• Incentives

– Tax incentives– Competition

• China

→ Win-win situation

International Evidence on R&D Expenditure

• Total R&D Expenditure

Source: OECD, MSTI.

• Government Expenditure

Source: OECD, MSTI.

International Evidence on R&D Expenditure

• Private Expenditure

Source: OECD, MSTI.

International Evidence on R&D Expenditure

“ People with ideas - people who own ideas - have become more powerful than people who work machines and, in many cases, more powerful than the people who own machines.”

The Creative Economy, John Howkins

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