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Regulation
Opinion

To drive innovation from the bottom up, Hong Kong needs deregulation from the top down

Sunny Cheng says the quality of local transport apps is but one example of institutional complacency, and it’s time for the government to shake up monopolies and create opportunities for the public to innovate

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Jeny Yeung, commercial director of Hong Kong’s MTR Corporation, demonstrates the new MTR mobile app at a press conference in Kowloon Bay in August. Photo: Sam Tsang
Sunny Cheng
How innovative are Hong Kong’s organisations? Take Octopus; they have created a humble innovation, Octopus O! ePay. The name is hard to remember, and the app little-used. For another example, look to our bus companies. They have created many apps for checking routes, but it’s necessary to open several to look up alternate routes. Our Transport Department also has an app. It’s a bit better, but hardly user-friendly.

All of this shows that innovating from the top of complacent organisations is seldom efficient; top executives are often obstacles to change.

A taxi passes an Uber station outside a shopping mall in Beijing in August 2016, after Uber agreed to merge its China operations with Didi Chuxing, ending a ferocious battle for market share. Photo: AFP
A taxi passes an Uber station outside a shopping mall in Beijing in August 2016, after Uber agreed to merge its China operations with Didi Chuxing, ending a ferocious battle for market share. Photo: AFP

Didi Chuxing, China’s Uber, is building countrywide charging network to drive into EV future

Our systems are not rotten, but they are complacent. Breaking up the monopolies, deregulating systems and not spoiling them with more power and incentives is one path to innovation. Didi Chuxing, China’s Uber, exemplifies the government breaking up the established interests of taxi operators.
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Here in Hong Kong, the locations of all buses are available through GPS, and the government can access this data. If data were provided freely to the public, a team of high school students could develop better bus apps than we have now.

Locking up the data will never get us anywhere. Hong Kong has a huge data depository of human movement in Octopus, recording users’ times and locations. If data becomes publicly accessible, we can make a smarter city in no time. We need government deregulation, shaking up monopolies and creating opportunities for the public to innovate.

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Another government function is to create high-value jobs for the young. The US Food and Drug Administration’s conservative regulations help big biopharmaceutical companies take advantage of the high costs of drug development to kill off innovative market entrants. New drugs become astronomically expensive to develop, with the latest cancer immunotherapy treatment costing US$373,000.

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