Economic Success in East Asia and in Hong Kong

Abstract

This study is concerned with the organizational characteristics of Hong Kong‟s manufacturing firms, the business and technology strategies they adopt. Before turning to those issues, it is useful to set the study in its broad setting, which is East Asian economic development. The purpose of this paper is to set out that broad setting, focusing on the explanations put forward for Hong Kong and East Asia‟s economic success. Particular attention is paid to the role of technology in economic development, to the technology policies adopted by governments and to the means by which East Asian firms have developed their technological capabilities. The paper also shows that Hong Kong Special Administrative Government (HKSAR) has taken a different route to development than other East Asian economies, which may have implications for its great change in policies to support R&D through the Research and Development Cash Rebate Scheme. Under the scheme, a company will receive a cash rebate equivalent to 40% of its expenditure in R&D Projects.