High technology and high value-added are the only way to go. But it may not be a direct replica of the Silicon Valley, for we do not really have the research funding or the critical mass of scientists and technicians. However, there are niches in high technology and high value-added industries that Hong Kong can explore and excel. The areas of focus will be regionalism and 'high touch'. As Asia, and in particular China grows, there will be demand for goods and services that cater to the local and regional markets.
Examples are Chinese medicine, media and entertainment.
Already we have good progress in research in Chinese medicine and we are the second largest movie exporter in the world. Success in these niche industries will drive further developments in related industries. Hong Kong can well become the centre in bio-technology and satellite communication. High technology and 'high touch' are the two sides of the same coin. As technology makes work easier and leaves us with more leisure time, we demand better quality of life as well as better 'tastes'.