Hong Kong should take advantage of its urban strengths to act as a test bed for mainland companies looking to innovate in the rest of the country, according to a policy and economic advisory firm.
“Hong Kong is well-developed as a densely populated city. The infrastructure and transportation systems are so well-established, we should make use of our strength to participate in China’s innovative projects,” ICF International lead managing consultant Tom Callahan told EJ Insight.
Callahan said the city’s legal system, food safety, and medical testing services were also useful examples for the country’s development. Its low tax rates and simple taxation system were also assets.
But the absence of a manufacturing base in the city is a hurdle because most innovative businesses around the world are product-based, Callahan said.
“We have land resources, fiscal reserves and talent. Hong Kong can be a test bed for China’s innovative development,” he said.
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