Hong Kong ITF

The Innovation and Technology Fund (ITF) of Hong Kong provides comprehensive funding support for innovation and technology development through multiple consolidated programs in 2025/2026. The Enterprise Support Scheme (ESS) offers up to HK$10 million (~$1.3M USD) for applied R&D projects. The Innovation and Technology Venture Fund (ITVF) with HK$2 billion capital co-invests with venture capital funds at 1:2 ratio, providing up to HK$50 million per startup. The ITVF Enhanced Scheme deploys HK$1.5 billion to establish funds focusing on three strategic industries: AI/data science, life/health tech, and advanced manufacturing/new energy.

In July 2025, ITF underwent major streamlining, consolidating schemes to better support new industrialization and new quality productive forces. The New Industrialisation Support Scheme now integrates three programs. The Innovation and Technology Industry-Oriented Fund (ITIF) launched in November 2025 for fund managers. The Pilot Manufacturing and Production Line Upgrade Support Scheme (Manufacturing+) launched November 2025 to support smart production.

For ZHC builders in 2025/2026, Hong Kong ITF offers:

• Strategic location: Gateway to Greater Bay Area and mainland China manufacturing
• Substantial funding: Up to HK$10M for R&D (ESS) or HK$50M co-investment (ITVF)
• Strong IP protection: Common law jurisdiction with robust patent system
• Bilingual ecosystem: English/Chinese environment for Asia expansion
• Manufacturing integration: Direct access to Shenzhen and Pearl River Delta production
• Multiple entry points: Programs for R&D, startups, university collaborations, industrialization

The 2025 consolidation makes ITF more accessible with clearer pathways for different startup stages.

Innovation and Technology Venture Fund (ITVF) - Co-investment Model (2025/2026)

Eligible Local I&T Startups Must Meet:

• Incorporated under Hong Kong Companies Ordinance within last 7 years
• One of the following in Hong Kong:
  • Headquarters or regional office
  • Main business operation
  • Key management or leadership team
• Engaging in I&T business covering R&D or production chain in Hong Kong
• Total employees (global) less than 250 people
• Company and subsidiaries must be I&T focused

Co-investment Structure:

• ITVF co-invests with selected Co-investment Partners (venture capital funds)
• Matching ratio: approximately 1:2 (ITVF:CP)
• ITVF is passive investor, CP leads the deal

Investment Caps:

• Maximum HK$400 million aggregate per Co-investment Partner
• Maximum HK$50 million per investee company
• Per co-investment: Lower of (i) 40% of target raise, or (ii) HK$30 million

Investee Company Requirements:

• Must spend at least 50% of ITVF investment on Hong Kong operations
• Includes: hiring Hong Kong talent, procurement of goods/services in HK

ITVF Enhanced Scheme - Fund Manager Model (2025/2026)

Strategic Industries Focus (Launched 2024, Optimized 2025):

1. Artificial intelligence and data science
2. Life and health technology
3. Advanced manufacturing and new energy

Fund Structure:

• Fund managers establish limited partnership funds under Limited Partnership Fund Ordinance
• Government commits HK$1 for every HK$3 raised from market
• Government contribution: HK$150-250 million per fund
• Total HK$1.5 billion redeployed from ITVF for this scheme

Investment Requirements:

• 100% of fund must invest in companies related to Hong Kong I&T ecosystem
• At least 50% of fund must invest in:
  • Hong Kong companies, OR
  • Non-Hong Kong companies with I&T establishment in Hong Kong
• Each investee company must spend at least 50% of investment on Hong Kong operations

Fund Manager Selection:

• Application closed March 19, 2025
• Selected managers now deploying capital
• Focus on strategic industry alignment

Enterprise Support Scheme (ESS) - 2025/2026

Eligibility:

• Hong Kong-registered company
• Applied R&D project with commercialization potential
• Project conducted primarily in Hong Kong
• Can provide 1:1 matching funds (50% company contribution)
• Private sector enterprise (not government-funded entities)

Funding:

• Maximum HK$10 million per project (~$1.3M USD)
• 1:1 matching required (company pays 50%)
• Duration: Up to 2 years per project
• Milestone-based payments

Eligible Costs:

• Staff costs for R&D personnel
• Equipment and materials
• Technology transfer and IP costs
• Outsourced R&D services
• Quotation limit for procurement: HK$1.35 million (updated Jan 2026)

Innovation and Technology Support Programme (ITSP) - 2025/2026

Note: Research and Development Cash Rebate Scheme consolidated into ITSP effective Aug 1, 2025

Eligibility:

• Local public research institutes (universities, R&D centers)
• Collaboration with enterprises for applied R&D
• Focus on technology transfer to local industries
• Project helps industry upgrade and transformation

Funding:

• Up to HK$5 million per project
• University-industry partnerships
• IP ownership negotiable between parties
• Patent registration fees covered

New Industrialisation Support Scheme (Consolidated Nov 2025)

Integrates Three Programs:

1. New Industrialisation Funding Scheme
2. New Industrialisation and Technology Training Programme
3. Pilot Manufacturing and Production Line Upgrade Support Scheme (Manufacturing+)

Manufacturing+ (Launched Nov 18, 2025):

• Supports smart production strategies
• Advanced technology introduction to production lines
• For enterprises with manufacturing operations or production lines in Hong Kong

New Industrialisation Acceleration Scheme (NIAS) - Updated Nov 2025

Major Changes Effective Nov 18, 2025:

• Minimum project cost reduced from HK$300M to HK$150M
• Matching basis funding for technical personnel employment
• Supports large-scale manufacturing and industrialization projects
• Focus on advanced manufacturing in Hong Kong

Innovation and Technology Industry-Oriented Fund (ITIF) - New 2025

Status:

• Launched November 2025
• Fund manager applications: Open until January 16, 2026
• Designed to complement ITVF with industry-specific focus
• Details available at ITIF website

General Support Programme (GSP) - 2025/2026

Application Schedule:

• Open all year round
• Cut-off date: February 27, 2026 (for Jun-Sep 2026 assessment)
• Quarterly evaluation cycles
• Various R&D and technology projects

Patent Application Grant (PAG) - Being Phased Out

Status as of Aug 1, 2025:

• Being integrated into existing R&D funding schemes
• Patent registration now covered under ITSP, ESS, and other schemes
• PAG achieved goal of fostering patent culture in Hong Kong

ZHC-Specific Fit Assessment

✅ Excellent fit for:

• Hong Kong-registered or willing to establish HK entity
• Startups targeting Greater Bay Area and Asia markets
• Hardware/manufacturing startups needing China production access
• AI, healthtech, advanced manufacturing, new energy sectors (ITVF Enhanced focus)
• University spinouts with technology transfer potential
• VC-backed startups seeking additional capital (ITVF co-investment)
• Applied R&D with clear commercialization path (ESS)
• Companies can provide 50% matching funds
• Teams with Hong Kong presence (office, team, operations)
• B2B companies selling to Asian enterprises

❌ Poor fit if:

• No Hong Kong presence or unwilling to establish one
• Pure research without commercialization plan
• Cannot provide matching funds (for ESS)
• Company over 7 years old (for ITVF startup programs)
• Over 250 employees globally (for ITVF)
• Less than 50% of funds can be spent in Hong Kong
• Consumer software-only with no Asia focus
• No connection to strategic industries (for ITVF Enhanced)

ITVF Co-investment Process (For Startups)

Note: ITVF is passive investor - Co-investment Partners (VCs) initiate deals

Step 1: Secure Lead VC (Your Responsibility)

• Partner with ITVF-approved Co-investment Partner
• VC must be on approved CP list
• Negotiate term sheet with lead VC
• Timeline: 1-3 months

Step 2: CP Invites ITVF Co-investment

• Lead VC submits co-investment proposal to ITVF
• Includes company details, investment terms, business plan
• CP demonstrates startup meets eligibility criteria
• Timeline: CP discretion

Step 3: ITVF Evaluation (2-3 months)

• ITVF Secretariat conducts evaluation
• Consultation with ITVF Advisory Committee
• Assessment framework criteria:
  • Innovation and technology content
  • Commercialization potential
  • Hong Kong connection and benefit
  • Management team capability
  • Financial viability
  • Strategic industry alignment
• Site visits and due diligence

Step 4: Investment Decision (1 month)

• Advisory Committee recommendation
• Final approval from ITC
• Investment terms finalized
• Legal documentation

Step 5: Investment Execution (1-2 months)

• Shareholder agreement signing
• ITVF and CP invest simultaneously
• Funds disbursed to company
• Monitoring framework established

Step 6: Ongoing Monitoring

• Quarterly progress reports
• Financial reporting
• Hong Kong spending verification (50% requirement)
• Milestone tracking
• Board observer role (passive investor)

Total Timeline: 4-9 months from CP proposal to funding

ITVF Enhanced Scheme Process (For Fund Managers)

Application Closed March 19, 2025

Selected fund managers now raising and deploying capital in three strategic industries.

For Startups Seeking Investment:

• Identify which selected fund manager covers your sector
• Apply directly to the limited partnership fund
• Fund managers have HK$150-250M government backing each
• Must align with AI/data science, life/health tech, or advanced manufacturing/new energy

Enterprise Support Scheme (ESS) Application Process

Step 1: Pre-Application Preparation (1-2 months)

• Define R&D project with clear innovation
• Develop commercialization plan
• Prepare detailed technical proposal
• Create comprehensive budget (matching 1:1)
• Ensure project conducted in Hong Kong
• Identify team qualifications

Step 2: Online Application Submission

• Register on ITF online system
• Complete application form
• Submit required documents:
  • Project proposal and technical description
  • Innovation and differentiation analysis
  • Commercialization plan and market analysis
  • Detailed budget breakdown with matching funds
  • Team qualifications and CVs
  • Company registration documents
  • Financial statements (latest 2 years)
  • Letters of support (optional but helpful)
• Quarterly deadlines - check ITF website for next cut-off

Step 3: Initial Review (2-3 months)

• ITF Secretariat screens application
• Completeness check
• Eligibility verification
• Preliminary assessment
• May request clarifications or additional information

Step 4: Expert Panel Evaluation (1-2 months)

• External expert assessment
• Technical feasibility review
• Innovation evaluation
• Commercialization potential assessment
• Budget reasonableness check
• Possible presentation/interview

Step 5: Final Approval (1 month)

• ITF Advisory Committee review
• Final decision by Innovation and Technology Commission
• Approval letter issued
• Project agreement prepared

Step 6: Agreement and Project Start (1-2 months)

• Sign project agreement with ITC
• Finalize milestone schedule
• Establish reporting framework
• First payment disbursed upon start

Step 7: Project Execution (Up to 24 months)

• Conduct R&D according to plan
• Submit progress reports (quarterly/semi-annual)
• Financial reports with audit
• Milestone achievement verification
• Receive payments upon milestone completion
• ITF conducts site visits and reviews

Step 8: Project Completion (3-6 months)

• Submit final technical report
• Final financial audit
• Demonstrate project outcomes
• IP registration (if applicable)
• Final payment disbursement
• Commercialization update

Total Timeline: 6-9 months from application to start, then 24 months execution

ITSP (University-Industry) Application Process

Step 1: Partner Matching (1-3 months)

• University/research institute identifies industry partner
• OR company approaches university for collaboration
• Define joint R&D objectives
• Negotiate IP ownership arrangements

Step 2: Proposal Development (1-2 months)

• Joint proposal preparation
• Technical and scientific merit
• Technology transfer plan
• Industry application pathway
• Budget and resource allocation
• IP agreement framework

Step 3: Application Submission

• Research institute submits application
• Enterprise provides support letter and commitment
• Include collaboration agreement

Step 4: Evaluation (3-4 months)

• Peer review by academic experts
• Industry relevance assessment
• Technology transfer potential
• Budget review

Step 5: Approval and Execution (2-3 years)

• Up to HK$5 million funding
• Milestone-based progression
• Joint steering committee
• Regular progress reviews
• Patent registration costs covered

Total Timeline: 5-8 months to approval, 2-3 years execution

Manufacturing+ Application Process (Launched Nov 2025)

For Enterprises with Hong Kong Manufacturing Operations:

Step 1: Eligibility Verification

• Confirm manufacturing operations or production lines in Hong Kong
• Identify smart production strategy needs
• Determine advanced technologies for introduction

Step 2: Strategy Formulation

• Develop smart production roadmap
• Identify technology gaps
• Plan production line upgrades
• Budget technology introduction costs

Step 3: Application

• Submit through ITF online system
• Detail current manufacturing setup
• Propose technology upgrades
• Demonstrate efficiency gains
• Show competitiveness improvement

Step 4: Evaluation and Implementation

• Assessment of technology suitability
• Approval and funding allocation
• Technology deployment
• Performance monitoring

Procurement Quotation Limit: HK$1.35 million (updated Jan 2026)

NIAS Application Process (Updated Nov 2025)

For Large-Scale Manufacturing Projects:

New Lower Threshold: Minimum HK$150 million total project cost (reduced from HK$300M)

Step 1: Project Planning

• Industrial project exceeding HK$150M
• Advanced manufacturing focus
• Hong Kong-based manufacturing
• Technology and innovation components

Step 2: Application

• Comprehensive project proposal
• Technology roadmap
• Economic impact assessment
• Employment plan (matching basis for technical personnel)
• Funding request and matching commitment

Step 3: Evaluation

• Economic contribution assessment
• Technology advancement evaluation
• Job creation potential
• Strategic importance

Step 4: Approval and Implementation

• Multi-year funding commitment
• Milestone-based disbursement
• Regular monitoring and reporting

Key Application Tips

For ITVF Co-investment:

• Partner with approved Co-investment Partner first
• Demonstrate strong Hong Kong connection
• Show how 50% of funds will benefit Hong Kong economy
• Focus on strategic industries for Enhanced Scheme funds

For ESS:

• Emphasize applied R&D with commercialization potential
• Provide detailed budget with clear 1:1 matching
• Show innovation beyond existing solutions
• Demonstrate team's technical capability
• Include letters of intent from potential customers

For All ITF Programs:

• Strong Hong Kong presence improves chances
• Clear technology innovation required
• Commercialization pathway must be realistic
• Budget must be detailed and justified
• Quarterly application deadlines - plan ahead
• Consider consolidation (some programs merged in 2025)