The Government will forge ahead with building a competitive low-altitude economy ecosystem with the formulation of an action plan to advance Hong Kong as a major hub for low-altitude applications.

Chief Executive John Lee made the statement while unveiling innovation and technology (I&T) measures in the 2025 Policy Address today.

He explained that the action plan involves improving the civil aviation legislation and regulatory framework, including dedicated legislation for unconventional aircraft weighing over 150kg to lay the foundation for standardisation of the low-altitude economy.

The plan also comprises the enhancement of core infrastructure facilities by designating spectrum by the end of the year, as well as facilitating early planning and deployment of facilities such as vertiports, air route networks, satellite positioning, three-dimensional spatial data systems and a smart, low-altitude traffic management system.

The Government will roll out “Regulatory Sandbox X” pilot projects to cover application scenarios that are technically more complex such as cross-boundary routes and passenger carrying, low-altitude aircraft, while the Insurance Authority will forge closer ties with the insurance industry which has set up a task force to develop low-altitude economy insurance products for various application scenarios.

On the new industrialisation front, Mr Lee pointed out that the Government plans to expedite the development of the third InnoHK research cluster with the focus on sustainable development, energy, advanced manufacturing and materials.

The application threshold for the New Industrialisation Acceleration Scheme will be relaxed by lowering the minimum total project cost from $300 million to $150 million, and the I&T Industry Oriented Fund will be launched in 2026-27 to channel market capital to invest in emerging and future industries of strategic importance.

The Government also advocates promoting aerospace science and technology, and supporting the space economy in the Policy Address, having set up the Space Robotics & Energy Centre under the InnoHK research clusters to support the country’s Chang’E 8 mission. 

Meanwhile, the Innovation & Technology Support Programme Special Call on Aerospace Technology has allocated over $100 million to support six university research and development projects.

Mr Lee underscored that the Commerce & Economic Development Bureau (CEDB) is exploring how to streamline the vetting of licence applications for Low Earth Orbit satellites and will promote 6G application, while the Investment Corporation Limited is to pursue investment in areas related to commercial aerospace and the space economy.

On the promotion of intellectual property (IP) trading, the CEDB and the Intellectual Property Department will collaborate with the Monetary Authority to launch an IP financing sandbox to assist pilot sectors, particularly the technology sector, in leveraging IPs for financing with the support of the banking, insurance, valuation, legal and other professions.

The Chief Executive noted that the Government will support the Technology & Innovation Support Centre, which will officially operate by the end of this year, to provide local small and medium I&T enterprises with patent evaluation based on national standards, and will launch a two-year pilot programme to subsidise patent valuation as a reference for credit financing.

Following the completion of the consultation on enhancing the Copyright Ordinance regarding the protection for AI technology development last year, the Government will formulate a code of practice in respect of relevant legal principles and prepare a legislative proposal, Mr Lee said.

It is also reviewing the local registered designs regime for consultation by the end of the year, he added.