Steven Davidson, a partner with IBM Global Services, says CEOs prefer Hong Kong as the place to find business partners for China

Hong Kong is regarded by CEOs globally as a leading business innovator, and the place to find the right business partners for China.

These were the findings of an innovation survey by IBM Global Services, which interviewed some 765 CEOs worldwide, including 300 in the Asia-Pacific.

Steven Davidson, a partner with IBM Global Services, says the study suggests Hong Kong is seen as innovative in a collaborative sense, and able to work with a broad range of partners.

Innovation, Mr Davidson explained, is defined in the broader context, beyond just products and services "We were looking at innovation in business models and operations," he said. "It's about doing something new to deliver value to the client, and then capturing that value for the organisation."

The survey shows that one of Hong Kong's strengths is innovating in the way that it does business, Mr Davidson said. Hong Kong may not always be known as the inventor of something new, but it is an innovator in terms of business model, he said.

First mover advantage

Mr Davidson cited Li & Fung as "a classic example" of a Hong Kong company's ability to innovate. The global trading group has a range of suppliers and customers, and is the biggest exporter of clothes from Turkey. "This highlights what a broad world they work in, and their role as an orchestrator. I would say that is a classic example of innovation in business model." Hong Kong companies were among the first to move their manufacturing into China, demonstrating their innovation in operation, he added.

Entering the China market poses both opportunities and challenges for companies, the CEOs surveyed said. A key challenge is finding the right business partners. "A lot have realised that if you try to move into China without either Chinese people who understand the market, or business partners who can help you get into the market, that's very difficult," Mr Davidson said.

Seventy five per cent of respondents said collaboration was vital, he said. With so many companies locating their Asia-Pacific headquarters here, Hong Kong is a place where collaboration is natural. "So it is that mix of organisations you get here and the diversity of business model that Hong Kong really provides."

Hong Kong companies redefine innovation


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