How Hong Kong can keep its competitive edge over rivals like Singapore

Hong Kong must invest in digital technology and human development if it doesn’t want to lose its competitive edge to regional rivals, says leading American economist and management guru Michael Porter.

Despite having a productive economy, good infrastructure and a dynamic business community, the city needs to continue innovating and strengthening its human development, Porter said, speaking to The Post, an international philanthropy forum organised by the Hong Kong Jockey Club Charities Trust. Known for his work in the field of competitive strategy, Porter is a professor at Harvard University’s Business School.

“Hong Kong has traditionally [been competitive] in areas like logistics and financial services. [But] it needs to create a unique platform for doing certain types of things,” Porter said.

“Every so often, every country or territory needs to go through a systematic process of saying: who are we competing with, where do we stand, where are we diminishing our advantage and what do we do about it.”

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According to Porter, digital technology – such as information technology and innovations like augmented reality – is now a key driver of growth globally. Hong Kong needs to do better in areas like technology and patenting as well as build a stronger digital foundation, he said. Developing digital technology would have the greatest medium term impact on the economy, Porter added.