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Hong Kong economy
CommentHong Kong
John Hanzhang Ye
John Hanzhang Ye

Opinion | Flaws in Hong Kong’s approach to innovation apparent in Mil Mill row

  • The government has its sights set on developing more glamorous, hi-tech sectors, but it must think carefully about Hong Kong’s place in an already established supply chain
  • Moreover, neglecting home-grown innovation and industries does not send the best message

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A worker operates machinery at Mil Mill, Hong Kong’s only recycling plant dedicated to beverage cartons, on September 15 in Yuen Long. Photo: K. Y. Cheng
John Hanzhang Ye
The possible closure of Mil Mill, the only drinks carton recycler in Hong Kong, raises questions about the government’s commitment to its environmental goals and its support for green technology innovation.
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Both the Environmental Protection Department and Mil Mill’s landlord, the Hong Kong Science and Technology Parks Corporation, say they have done their best to accommodate the needs of the recycler, even though its current site is to be set aside for other industries. The episode reveals a lack of long-term vision for the city’s technological development.

Speaking at an event organised by the Stem Education Alliance on September 26, Chief Executive John Lee Ka-chiu once again stressed the government’s determination to transform the city into a technology hub.

The new policy address has its own section on technological innovation. The government’s goal is ambitious. It aims to attract at least 100 innovation and technology companies to set up or expand their operations in Hong Kong in the next five years. But there seems to be less support for home-grown innovation.
Moreover, the government prefers to set its sights on sectors like biotechnology and electronics. One can see the appeal: these involve cutting-edge technologies that are expected to boost economic growth. Moreover, they conjure up images of shiny laboratories with fancy equipment and computers. By contrast, recycling is an industry associated with low-skilled work and low growth. It doesn’t fit the government’s vision of the city’s future.
Chief Executive John Lee Ka-chiu (centre left) poses for a photo with other guests at the launch of a new Stem initiative at Pui Kiu Middle School in North Point on September 26. Photo: Xiaomei Chen
Chief Executive John Lee Ka-chiu (centre left) poses for a photo with other guests at the launch of a new Stem initiative at Pui Kiu Middle School in North Point on September 26. Photo: Xiaomei Chen

Yet even if the government prefers to develop a hi-tech electronics industry, there are still two problems. First, has it thought about where Hong Kong should position itself in the supply chain? We are no longer in the 1980s, when the industry was in its infancy and companies in the United States were beginning to outsource some of their production overseas.

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