The Enterprise Support Scheme (ESS)

Back to Atlas

How does the program work?

The Enterprise Support Scheme (ESS) provides grants of up to HK$10 million (around €1.2 million) for businesses of all sizes to invest in research and development (R&D) projects. Grants are given on a one-to-one matching basis alongside the businesses’ own project spending. Projects approved for ESS may apply for extra financial support under the Internship Programme which funds each project to hire up to two interns.

What is the EES?

  • EES is designed to encourage the private sector to invest in research and development (R&D).
  • Funding support of each approved project is up to HK$10 million and will be provided on a dollar-for-dollar matching basis.
  • Project period should generally not be longer than 2 years.
  • The funding recipient company will own all intellectual property rights arising from the project.
  • Recoupment of Government's contribution is not required.
  • Benefit-sharing of commercialised R&D results would be non-mandatory.
  • Project with an approved project period of 12 months or longer can apply for financial assistance under the Researcher Programme and/ or Postdoctoral Hub to hire additional staff.
  • The funding recipient company can also apply for the Research and Development Cash Rebate Scheme to receive a cash rebate of up to 40% of the company’s expenditure in the project.
Eligibility

The Enterprise Support Scheme (ESS) provides grants for businesses of all sizes to invest in research and development projects.

A company will be eligible to apply if it is:

  1. incorporated in Hong Kong under the Companies Ordinance;
  2. registered in Hong Kong under the Business Registration Ordinance;
  3. not a government subvented organisation; and
  4. not a subsidiary of any government subvented organisation.
Notes + Additional Context

Excerpt from the Hong Kong case study in Nesta's ‘Idea Bank’ for Local Policymakers:

Hong Kong’s startup ecosystem is growing rapidly. According to the 2015 Global Startup Ecosystem Ranking, it is the 25th largest startup ecosystem in the world in terms of size and 5th fastest growing in terms of expansion. The financial technology (‘fintech’) and internet of things (‘IoT’) sectors, in particular, have boomed. Hong Kong is a major financial centre, which makes it an attractive place for fintech startups looking to collaborate or sell to banks or insurance companies. In addition, its proximity to the Chinese manufacturing hub of Shenzhen makes it an inviting location for IoT companies in need of rapid prototyping. New businesses in Hong Kong also benefit from low tax rates, modern infrastructure and ease of company formation.

Despite being a financial hub, many Hong Kong startups report problems in raising seed funding. The reasons are unclear, but one possible explanation is that the financial and real estate markets offer much more attractive investment opportunities. Whatever the cause, however, the Hong Kong government realised that additional support was needed, and so set up several investment funds, grants and loan guarantee schemes to try and improve the situation for tech startups trying to raise funds in the city.

CURATED BY

Simona Bielli

Research Programme Coordinator – Digital Startups
Nesta
United Kingdom