Government support is a sticking point for several startups. Some fledging local companies may spend years developing innovative products only to find that the government trusts big international names more than local manufacturers.

"With all these projects involving infrastructure construction in Hong Kong such as the third runway and smart city in Kowloon East, how many are from Hong Kong innovative companies instead of overseas big companies?" asked Matthew Lam, CEO of Optical Sensing Ltd. He believes that to further improve the ecosystem for Hong Kong startups, a well-planned government pilot trial program for local innovative companies should be established.

Benjamin Tse, business development director of local IT solutions company OceanX Technology Ltd, said the reason why the Hong Kong government tended to prefer international big companies was that they have been in use in Hong Kong for a long time and also that these big corporate houses usually have good international references.

But he pointed out that a lack of international references should not be an excuse for the government to reject local projects. He said countries dedicated to developing their technology and innovation industry, such as Singapore, all had government pilot trial programs for homegrown innovative startups. "As a result, our government is spending money to support overseas companies, but not local enterprises," said Tse.

Singapore believes it has the unique opportunity to become the world's first "smart" nation. To achieve this national blueprint, it has unveiled several pilot trial schemes at designated residential-business estates.

For example, to make its Jurong Lake District smart and sustainable, several trials have been deployed since 2014, involving more than 20 startups and companies and also government departments.

"When we go to the overseas market and try to promote our innovative products, they will often ask us since our products are so good, why is our government not using them?" Lam said. "It is a very embarrassing question."

Tse said getting certification for good track records from the Hong Kong government would build up the confidence of Hong Kong startups to tap into the international market.

"For startups, every penny is important," said Tse. "Government orders placed with local startups can not only help relieve their financial burden but, more importantly, can show the world that Hong Kong boasts good technological products."

frannie@chinadailyhk.com

(China Daily USA 11/13/2015 page5)