Technological innovation buttresses GBA development. Photo: TUCHONG

---

Amid complex global and domestic conditions, and in the context of a new wave of technological and industrial transformation, technological innovation has become a key driver of national and regional competitiveness and the most powerful lever for advancing high-quality development. The Guangdong-Hong Kong-Macao Greater Bay Area (GBA) has long served as a frontline of China’s innovation efforts. Strengthening its capacity for technological innovation will enable the region to better fulfill its role as an engine of high-quality growth and contribute more effectively to the broader goal of Chinese modernization. 

Accelerating the establishment of an international hub for technological innovation is a crucial strategic initiative in the GBA’s development. It is essential to the region’s efforts to become a world-class bay area and a high-quality development demonstration zone. By integrating the innovation resources of its constituent cities, promoting the transformation and upgrading of traditional industries, boosting the competitiveness of strategic emerging sectors, and cultivating future-oriented industries, the GBA can reinforce its role as a driver of high-quality economic growth. This, in turn, will enhance the area’s overall competitiveness and help position it as a regional engine of innovation, a national testing ground and demonstration zone for independent innovation, and a forerunner in innovation and industrial development with global influence. 

Technological innovation advantages 

The GBA is one of China’s most open and economically dynamic regions. Since the release of the Outline Development Plan for the Guangdong-Hong Kong-Macao Greater Bay Area in 2019, the GBA has made notable progress in the construction of a technological innovation center, steadily emerging as a major national—and even global—hub for technological advancement. According to the World Intellectual Property Organization’s Global Innovation Index 2023, the Shenzhen-Hong Kong-Guangzhou tech cluster ranked second globally, reflecting its strong performance in innovation metrics. The GBA leads the nation in several key indicators, including the number of research and development (R&D) personnel, high-tech enterprises, valid invention patents, and Patent Corporation Treaty international patent applications. The GBA is also accelerating the development of strategic technological capabilities, with world-class research infrastructure taking shape. Universities and enterprises continue to play a central role in driving research and innovation, fostering the industrial and commercial application of research outcomes, and advancing the broader marketization of technological innovation. 

Specifically, the GBA has made substantial headway in cultivating an innovation ecosystem aligned with its goal of becoming a global technology hub. Major initiatives such as national science centers, national technology innovation centers, and the construction of Guangming, Songshan Lake, and Nansha Science Cities have all advanced significantly. Landmark projects like the Human Cell Atlas and “Pengcheng Cloud Brain III” are now underway, helping to build a world-class cluster of major research infrastructure. The GBA is also directing targeted innovation funding toward foundational research, strengthening its basic research capacity and accelerating breakthroughs in both basic theoretical and applied research. At the same time, it is working to establish a virtuous cycle linking technology, industry, and finance—nurturing an all-around and all-domain innovation ecosystem that spans “basic research + technological breakthroughs + industrialization of achievements + technology finance + talent development.” These efforts are also driving forward reforms in technology governance. 

As an important support for technological innovation in the GBA, Hong Kong has achieved remarkable results in building its innovation ecosystem, and the synergies between its strengths and those of mainland cities within the GBA are increasingly evident. On one hand, Hong Kong has further consolidated its advantages in basic research. The Hong Kong Special Administrative Region (HKSAR) Government strongly supports original research in Hong Kong, aligns with the key frontier research fields prioritized by the country, strengthens thematic project research, and organizes technological breakthroughs for strategic key core issues. It is also enhancing support for universities and research institutions to expand research capacities, injecting new impetus into the continuous development of foundational research. New policies have been introduced to further promote collaborative, interdisciplinary, and cross-regional research, with the aim of producing more original breakthroughs. On the other hand, the HKSAR Government has also been continuously improving its technological innovation system and facilitating the translation of research into application. Its innovation ecosystem now fosters strong linkages among the upstream, midstream and downstream of technological innovation, achieving fruitful results in upstream technological breakthroughs, increasingly mature midstream transformation capabilities, and downstream technology industry development, making Hong Kong both an important advanced R&D center and pilot production and transformation base for national technology industries. Meanwhile, efforts to build a robust talent pool are ongoing, with the goal of positioning Hong Kong as a key international hub for technology talent—attracting top researchers and innovation leaders from home and abroad, and developing a global platform for collaboration among academia, industry, and research. 

Three challenges to innovation-driven development 

First, the supply of top-tier research talent remains insufficient, and the region’s foundational research capabilities still need strengthening. The GBA currently lacks world-class universities, and its higher education sector still trails behind global benchmarks such as the San Francisco Bay Area. 

Second, restrictions on the movement of innovation-related factors continue to impede cooperation between Hong Kong, Macao, and mainland cities. Although the GBA is characterized by complementary strengths across the Pearl River Delta, inefficiencies in the flow of talent, capital, and knowledge limit the region’s ability to leverage its comparative advantages in innovation.

 

Third, the development of technology finance has lagged, hindering the transfer, commercialization, and industrialization of research achievements. The distribution of venture capital (VC) is a bellwether of local innovation capacity, with regions attracting more VC investment generally demonstrating stronger innovation activity. In China, VC is concentrated in Beijing, which accounts for roughly a third of the national total. The GBA, by comparison, receives less VC funding. 

Strategies to strengthen innovation capacity 

A strong foundation in talent and education is an essential starting point for boosting innovation in the GBA. First, more flexible population mobility policies should be explored and implemented to facilitate the flow of high-end talent. Second, the region must address persistent gaps in basic research and education. Collaboration among GBA universities and research institutions should be deepened to build a robust university network. These institutions should anchor the development of major research infrastructure, interdisciplinary platforms, and frontier academic fields, with a focus on elevating the region’s capacity for fundamental science. In tandem with Hong Kong and Macao universities, the GBA should work to raise the proportion of highly educated residents, with particular emphasis on increasing investment in science and engineering disciplines. Additionally, graduate admissions quotas—especially at the master’s and doctoral levels—should be expanded to support a growing research workforce. 

Innovation financing should also be diversified and strengthened through the development of a flexible, multi-channel investment system. First, stable and sustained multi-channel R&D investment must be ensured. Public and private sector contributions serve different stages of the innovation cycle, and both are essential to technological innovation. In the GBA, public investment remains relatively insufficient. Government funding should be increased for basic science and priority technology projects, helping to close current R&D gaps. Targeted policies should be introduced to actively guide funds to support the start-up period of small and medium-sized technology enterprises in the transformation of technological achievements, with a focus on long-term, early-stage, and technology-oriented investment. Second, a diversified and stable financial service system should be established for technological innovation. With VC as the focus, private equity funds should be encouraged to provide financial support for the development of start-ups. The government should take the lead in building a financial service platform for entrepreneurship and innovation, helping enterprises connect with various financial institutions, intelligently matching relevant support policies, and providing various professional services. Specifically, the government can establish a GBA Industrial Bank with government funds to provide special financial services for manufacturing enterprises and high-growth, high-risk high-tech enterprises within the GBA. 

Finally, cross-border cooperation in technological innovation should be further deepened through coordinated efforts across the region. Key projects and platforms can serve as anchors for collaboration among Guangdong, Hong Kong, and Macao. At the same time, the integration of regional innovation service resources should be prioritized to achieve the goal of building a comprehensive support system that spans the entire innovation chain. 

Li Xiaoying is a professor from the Institute of Guangdong, Hong Kong and Macao Development Studies at Sun Yat-sen University. 

Edited by ZHAO YUAN