Hong Kong Economy Gets Boost With CTO Head & MIT Node

Hong Kong’s fledgling startup ecosystem passed more milestones in recent days in developments that could broaden the city’s financial and trading base to an innovative economy reminiscent of Singapore’s efforts in jumpstarting creative small businesses. Notably, Hong Kong has moved ahead after a long delay and approved funding for a new government position overseeing startups and technology. Nick Yang, former long-term CEO of HK’s Cyberport, has been appointed to head up the new Innovation and Technology Bureau, reporting directly to Chief Executive CY Leung. In other Hong Kong startup news, the Massachusetts Institute of Technology is making plans to open an accelerator-style center of innovation, an “Innovation Node,” on the island in a 5,000 square feet space with advanced tools and materials for invention and prototyping. Several of the 700 Hong Kong-based MIT alumni contributed initial funding for the center, set to open next summer. While MIT has established other international centers in Japan, Chile and Singapore, its hub in Hong Kong is the first dedicated to innovation. The fact that MIT has chosen Hong Kong speaks to the city’s progress as an innovation hub, in close proximity to key cities Shenzhen and Guangdong. Despite these and other ambitious initiatives such as the launch of dozens of co-working spaces, Hong Kong startups face a funding gap. Last year, Hong Kong-based tech startups attracted $34 million in funding, nearly double the amount in 2013, according to AVCJ Research. Compare this to last year’s sums for startups in other Asian cities: $320 million for Singapore, $179 million for Tokyo, and $72 million for Seoul.