Hong Kong Targets Nearly Double Tech and Innovation Spending

Hong Kong plans to raise spending on innovation activities to about 3% of GDP after 2030, nearly double the 1.63% recorded in 2024. The target is part of the city's first Five-Year Plan for 2026-2030, which puts technology and innovation at the centre of its economic strategy. The plan also includes new funding for AI, robotics, semiconductors and other emerging industries, with the government seeking to bring more private capital into the sector. Read on to see how Hong Kong plans to turn higher spending into a larger technology base.

September 16, 2026

AI and Advanced Technology Take Priority

The five-year plan identifies several areas for increased support, including artificial intelligence and robotics, life and health technology, microelectronics, new energy, advanced manufacturing and new materials.

AI has been given a particularly prominent role. The government plans to strengthen computing infrastructure, including the Sandy Ridge Data Facility Cluster, and expand the use of AI across different parts of the economy. It also intends to establish major research platforms and deepen collaboration between universities, research institutions and companies.

From Research to Commercialisation

The plan also calls for further development of the city's three major innovation and technology parks and five key R&D institutions. The aim is to strengthen the link between research and commercialisation, rather than limiting investment to academic research.

That shift could be important for companies seeking to turn research into commercial products. Hong Kong's strategy increasingly connects technology policy with its financial system, using the city's capital markets and investment institutions to support emerging industries.

Government Funds to Bring in Private Capital

The plan includes a HK$10 billion Innovation and Technology Industry-Oriented Fund covering five areas: life and health technology, AI and robotics, semiconductors and smart devices, digitalisation and upgrading, and future and sustainable development.

The government expects the fund to eventually reach at least HK$40 billion through market participation, with private capital contributing at least three times the government's funding. A separate enhanced Innovation and Technology Venture Fund will have up to HK$2.5 billion available to establish matching funds with the market, with at least HK$7.5 billion in private capital targeted.

Hong Kong Investment Corporation will also be used to co-invest in areas including hard technology, biotechnology, new energy and green technology. The approach gives the financial sector a more direct role in funding the city's technology ambitions.

A Broader Economic Shift

The technology push forms part of a wider effort to diversify Hong Kong's economy while maintaining its position as an international financial centre. The government wants technology, advanced manufacturing and other emerging industries to account for a larger share of economic activity, particularly through the development of the Northern Metropolis and closer links with the Greater Bay Area.

Testing the Investment Strategy

For businesses, the increased spending creates a larger pool of public and private capital for technology projects. For investors, the more important test will be whether higher spending produces commercially viable companies, stronger research output and industries capable of scaling beyond government support.

The 3% target is also explicitly set for after 2030, rather than as a firm deadline within the current five-year planning period. Hong Kong therefore has several years to build the research infrastructure, funding mechanisms and private-sector participation needed to move from HK$51.7 billion of innovation spending in 2024 toward a materially larger technology base. The longer-term question is whether that capital can move beyond funding technology capacity and help create businesses that can compete and scale on a larger regional and global stage.