Bright ideas: Secretary for Commerce, Industry & Technology Henry Tang officiates at the launching ceremony of the Innovative Product Development Assistance Scheme.

Beginning in April, local manufacturers will have access to a new scheme aimed at upgrading their product-development capability by promoting innovation and technological applications.

The Innovation & Technology Fund has set aside $50 million for an Innovative Product Development Assistance Scheme, to be introduced on a trial basis for one year beginning on April 1.

Speaking at the scheme's launch ceremony today, Secretary for Commerce, Industry & Technology Henry Tang said the scheme would broaden the local talent pool in product development and design, and enhance the economy's competitiveness.

The Innovation & Technology Fund was set up in 1999 to finance projects that contribute to innovation and technology upgrading in industry. From its inception in November, 1999 to the end of February, 2003, the fund has approved 360 applications with a total value of  $915 million in funding.           

The consumer-electronics products is the target sector for this trial scheme.

"Hong Kong's electronics industry is the largest merchandise export earner, accounting for 36 % of its total exports in 2001," Mr Tang said.

According to global trade statistics released in 2001, Hong Kong was the largest exporter of calculators, radios and telephone sets in the world. Its total exports of electronics increased by 12 % year-on-year to reach $555.9 billion in the first 11 months of 2002, Mr Tang said.

The Innovative Product Development Assistance Scheme provides a matching grant in support of projects leading to "pre-production prototype stage" development of new and innovative products.

The scheme aims to fund the design and development of consumer product with electronics components in it as an essential and critical feature. Audio-visual equipment, personal digital assistants, telecommunication devices, sensors and electronics toys are some examples.

A local company involved in the research and development, design, production or marketing of consumer-electronics products will be eligible.

To qualify, projects:

* must demonstrate that the products are innovative and new to Hong Kong in terms of functionality or technology application;

* must have research and development content in the area of electronics technologies;

* should have deliverables that include new products or new components;

* must be conducted primarily in Hong Kong; and

* must be completed within 18 months. 

The scheme will support up to 50% of  an approved project's cost, up to a maximum of $2 million.

The Fund will monitor the response to the trial scheme and review the arrangements a year after its launch.

Application details are available from the Innovation & Technology Fund website at http://www.itf.gov.hk. Further information can be obtained from the ITF Secretariat on 14/F, Ocean Centre, 5 Canton Road, Kowloon or by calling  2737 2229.