(Yicai Global) Oct.13 -- Carrie Lam Cheng Yuet-ngor (Carrie Lam), Hong Kong's chief executive, released her first policy address after taking office on Oct.10.

The government will strive to drive comprehensive scientific and technical innovation to revitalize the economy and improve citizens' lives. In her 5-year tenure, the government of the Hong Kong Special Administrative Region Government will increase the ratio of local research and development (R&D) expenditures to gross domestic product from the existing 0.73 percent to 1.5 percent, Lam said.

Therefore, the government will allocate at least USD1.28 billion (HKD10 billion) for university research, and will provide additional tax credits for enterprises' R&D expenditures.

Hong Kong and Shenzhen will build a future Hong Kong-Shenzhen Innovation and High-Tech Park at the Lok Ma Chau River Bend area and develop an international scientific and technical innovation center for by developing a Greater Bay Area of Guangdong, Hong Kong and Macao and enhance cooperation between Shenzhen and Hong Kong. A HKD2 billion Scientific and Technical Innovation Venture Fund will be invested into local scientific and technical innovation startups matched by private venture funds, per the policy address.

Hong Kong's government will also allocate HKD700 million to drive infrastructure construction of a smart city, including issuing digital identity documents allowing residents to conduct online governmental and commercial transactions with these unique authenticated digital IDs. To become a smart city, Hong Kong must furnish broadband services covering all residents, Lam further noted.

Hong Kong's education bureau will allocate HKD3 billion for financial aid to local graduate students, she stated.