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Hong Kong's Startup Ecosystem: Improving the Odds

The case describes the challenges and opportunities presented by Hong Kong’s tech startup ‘ecosystem’ for young entrepreneurs. These are presented in the context of a consulting assignment to identify and analyze weak points in the system and deliver recommendations to address the issues at the policy level. The base condition is that startups must navigate a complex arena of resources and institutions, some of which are unique to Hong Kong, others of which are common to all startups. From a management perspective, virtually all startups face decisions that can be make-or-break. Since failure is commonplace, students are encouraged to look at ways to improve the odds for Hong Kong based startups given available resources as well as resources that have not been fully utilized.

Among the distinctive resources available to Hong Kong entrepreneurs are the opportunities outside Hong Kong’s immediate jurisdiction in the Greater Bay Area (GBA). More than a hinterland, the GBA presents prospects for acquisition of talent, manufacturing and funding of Hong Kong startups. Increasingly, Hong Kong institutions including the universities and its two quasi-government technology incubators, Hong Kong Science and Technology Park and Cyberport, are looking for ways to bridge the gaps within Hong Kong’s jurisdiction by extending services to the GBA.

The protagonist is a fictional consultant and their team, hired by an unnamed government agency to look for ways to elevate Hong Kong’s high-tech startup ecosystem.  Conceptually, the team is asked to consider Hong Kong’s startup ecology in three dimensions – public policy, institutions, and the fault lines faced by startups navigating the system. The outcome, which can be the basis for a class exercise, is a set of actionable recommendations aimed at senior levels of government.

Year of Publication: 2026
Ref. No.: 25/842C
Discipline: Public Policy and Strategy
Industry: Application Software, Commercial Services, Diversified Commercial and Professional Services, Diversified Financial Services, Fintech, Government, Information Technology Enabled Services, Internet Retail, Internet Software and Services, Software & Services
Country/Region: China (People's Rep. of), Hong Kong SAR, Taiwan, United States of America
Languages: English
Pages of Text: 21

Learning Objective:

  1. After discussing the case, students will be able to discuss the strengths and weaknesses of the Hong Kong tech startup ecosystem, and how system design and public finance affect commercializing new technology, drawing on work by Hargadon and others on why startups succeed or fail.
  2. Analyze Hong Kong’s startup ecosystem from a comparative perspective, by researching other models, from Silicon Valley to East Asian industrial parks such as Taiwan’s Hsinchu Science Park and European Union subsidies for startups.
  3. Understand the challenges at both the policy level and the firm level of sustaining a startup through scaling up and commercial production, including the risk management perspective of investors in startups.
  4. Leverage case examples of successful startups to build arguments for specific policy measures.

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