Hong Kong aims to raise innovation spending to 3% of GDP by about 2030

Hong Kong’s new five-year plan targets a 3 percent GDP allocation for innovation by 2030, up from 1.63 percent in 2024. This is an aggressive forecast. The plan also includes specific measures for aerospace research, signaling a focus on deep tech rather than broad-based startup support. The city’s ability to attract and retain top talent will be key to achieving this goal.

Hong Kong will compete more directly with Singapore in deep tech and research. Singapore already invests heavily in R&D and has a mature innovation ecosystem. Hong Kong must show concrete results beyond financial incentives to draw researchers and companies away from established hubs. The test for Hong Kong is whether it can build a robust scientific infrastructure to support these ambitions.

The thing to watch is the specific allocation of the projected 10 percent annual expenditure increase. If a significant portion goes to foundational research institutions and talent development, it could genuinely elevate Hong Kong’s tech standing. If it primarily funds incubation programs or general startup grants, the impact will be limited.