The Financial Secretary of Hong Kong will announce new support for intellectual property (IP) in the upcoming budget for 2026-27, including measures specifically aimed at developing talent, evaluating patents for local businesses, and supporting the city’s expanding IP economy.
The developments will be announced in a budget speech to be given on Wednesday with a record budget surplus and growing public calls for targeted spending to enable long-term growth.
Industry sectors are calling for “sweeteners” — targeted support programs — from the government to reduce the financial burden on businesses and support the overall economy.
One government official told the South China Morning Post, “Supporting the IP economy is an important part of diversifying Hong Kong’s economy, which is one of the key themes of the budget speech, and will also encourage greater innovation and assist in aligning with national goals.”
The 14th Five-Year Plan by the Government of China identifies Hong Kong as the global hub for eight categories, one of which is the transition to being a leading regional hub for the commercialization of IP. The IP economy currently represents approximately 30 percent of the gross domestic product (GDP) and is also the source of employment for 30 percent of people employed in Hong Kong.
New Intellectual Property Academy
According to sources, Chan will announce today the Intellectual Property Academy (I.P.A.) — a new organisation, supported by a capital injection of tens of millions of HK dollars, to educate and train individuals as professionals in the areas of I.P. law, patent strategy, valuation, and commercialisation.
The purpose of the I.P.A. is to create a deep pool of talent for the increasingly important area of I.P. as it relates to growth of businesses through technology and innovation. With the continued focus on enhancing Hong Kong’s role in the area of I.P. commerce and finance, the demand for individuals trained in the I.P. field is expected to continue to grow.
Patent Evaluation Support
Budget talks also revolve around enhancing the assessment and appraisal of patents, to help local technology businesses to be able to more accurately determine the commercial value and quality of their patents. This type of evaluation support is a critical first step towards giving businesses access to financing based on intellectual property rights (IP) and allowing them to become more engaged in cross-border transactions of IP.
As part of pilot programs, the government and companies will share the expenses of professional appraisal of patents, with a ceiling set on the government’s portion of the expense for the appraisal. The appraisals will also be conducted in conformity with the national standards used in the Mainland, and are intended to provide greater transparency and confidence for investors and financial institutions.
Aligning With Broader Innovation Push
The actions described are part of a broader approach by policymakers in supporting an innovation and technology environment in Hong Kong. They have also started a number of initiatives, most recently with the establishment of the Hong Kong Technology and Innovation Support Centre (HKTISC). The purpose of the HKTISC is to provide patent search, consultation, and soon qualitative patent evaluations according to national standards and support to provide assistance for small and medium enterprises (SMEs) to commercialise their intellectual property. In addition to this support, government officials see this as also enhancing Hong Kong’s overall objective to have a regional hub for IP trade, finance and professional services which are key to diversifying the economy from the traditional financial and trading operations that have been in place for decades in Hong Kong.