There is little doubt that there is an urgent need for Hong Kong to catch up with its neighboring competitors in the innovation race. Unsurprisingly, the establishment of the new Innovation and Technology Commission is widely seen as a positive step forward in creating a friendly environment for young entrepreneurs who are big on ideas but short on funds.

With greater encouragement by the government, many more young Hong Kong people with ideas are expected to join the ranks of the new breed of entrepreneurs who are thriving in Singapore, South Korea and Shenzhen. Some social scientists and business gurus have said that entrepreneurship is in the blood of Hong Kong people.

In the past, Hong Kong entrepreneurs were known for their nimbleness and keen market sense in exploiting rapidly changing trends. To succeed, the entrepreneurs of today need to be much more innovative. They need to think of creating products to meet needs that nobody even knows exist.

The risks associated with such endeavors are enormous. Many who have tried before have failed. In Hong Kong, the cost of failure is particularly high because of the social stigma of bankruptcy. This makes it difficult for anyone who has gone through the process to find a decent job or re-establish their credit standing.

The distinctive culture in Silicon Valley in the US, the model which every aspiring startup hub tries to emulate, is much more forgiving. Some tech companies there even consider a previous record of bankruptcy to be an asset of a potential employee, believing that such a person has learned a valuable lesson from their previous mistakes.

To promote innovation in Hong Kong, there is a clear need for the government and businesses to try to mitigate young entrepreneurs' fear of failure. They should be encouraged to take risks without worrying about any lifelong consequences.

(HK Edition 11/17/2015 page7)