In today’s highly competitive and rapidly evolving business landscape, innovation and market transformation capabilities are crucial for enterprises to stand out and achieve sustainable development. The Enterprise Support Scheme (ESS), launched under Hong Kong’s Innovation and Technology Fund (ITF), serves as a timely catalyst, acting as a key driver for local companies to realize technological breakthroughs and entrepreneurial expansion.
The Enterprise Support Scheme (ESS) is a funding program under the Hong Kong SAR Government’s Innovation and Technology Fund (ITF), introduced in 2015, to encourage private sector investment in research and development (R&D). The scheme provides financial support of up to HK$10 million on a matching basis (“dollar-for-dollar”) for in-house R&D projects, which typically have a duration of 24 months. This initiative helps mitigate R&D risks for enterprises, accelerates product development, enhances technological capabilities, and fosters technological advancement in Hong Kong.
The primary objectives of the scheme are:
To incentivize private sector investment in R&D.
To fund enterprises in conducting in-house research and development.
To reduce the cost of innovation through financial support, encouraging investment in R&D.
To promote technological progress and economic diversification, assisting enterprises in technological upgrading and digital transformation.
Five-Step Guide: How to Apply for the Enterprise Support Scheme (ESS)
The Enterprise Support Scheme (ESS) aims to assist various industries, particularly Small and Medium Enterprises (SMEs), in reducing uncertainties and risks inherent in the R&D process through innovation, R&D, and technological upgrades, thereby accelerating product development cycles. The scheme helps overcome technical bottlenecks, shorten time-to-market, and strengthen corporate brand image and market competitiveness.
【Eligibility Criteria】
Must be a non-listed company registered in Hong Kong, or an enterprise with substantive operations in Hong Kong (regardless of size), holding a valid Business Registration certificate, and must not be a government-subvented organization or its subsidiary.
The company must be operational and possess the capacity for ongoing operations.
Possess R&D or innovation capabilities and have a well-defined project plan.
Able to provide a comprehensive budget and timeline, and assume corresponding operational risks.
Compliance with relevant government regulations and cooperation with subsequent monitoring and audits.
Note: Start-ups, SMEs, and large enterprises are all eligible to apply, with no industry restrictions. Projects with innovativeness and commercialization potential have a chance of approval. Some specific support schemes may have additional restrictions regarding company size or industry. Applicants are advised to check the latest official announcements and prepare thorough and sufficient financial justifications to ensure eligibility.
【Application Process】
Step 1: Preparation Phase
Confirm the enterprise meets the basic eligibility criteria, including holding a valid Business Registration Certificate and relevant registration documents.
Select a suitable project focus, preferably in areas such as innovative technology, commercialization applications, or digital transformation.
Step 2: Information Gathering and Planning
Application Documents: Valid Business Registration (BR) Certificate, Certificate of Incorporation (CI), latest Annual Return (NAR1), organizational chart.
Application Justification: Project brief/presentation, team member CVs, relevant certifications, employment contracts, salary statements, and for projects with a total cost reaching or exceeding HK$500,000, reference quotations.
Step 3: Complete and Submit Application
Submit the application online via the Innovation and Technology Commission (ITC) ITF Management System. Subsequently, submit the originally signed and company-sealed hard copy to the designated office, then await notification for review.
Step 4: Review and Assessment
The ITF conducts an initial screening of application documents and justifications to verify completeness and compliance, potentially arranging interviews or requesting additional information.
The application is reviewed by an independent Expert Assessment Panel, evaluated based on criteria such as innovativeness, technical feasibility, team capability, financial planning, and market potential.
If the Assessment Panel provides recommendations, the applicant must further elaborate on project details.
Step 5: Post-Approval Procedures
Successful applicants must sign a funding agreement with the ITF, specifying the project plan and grant amount.
During implementation, regular submission of progress reports, expenditure records, and audited accounts is required to ensure project adherence to the agreement.
Decoding the Five Key Assessment Criteria: How to Enhance ESS Success Rates
1. Highlight Innovation and Commercialization Potential: Building Unique Competitiveness
During the application, enterprises should emphasize the project’s “innovativeness” and “commercialization potential,” detailing the technological breakthroughs and how these confer market competitive advantages. For instance, introducing novel technologies or processes to solve persistent industry pain points or create new market demand.
Furthermore, provide substantial market analysis data to demonstrate the project’s broad commercial prospects. Use market research to showcase the target customer base’s size, demand characteristics, and purchasing power, illustrating the project’s market value to the assessors.
2. Meticulous Budget and Timeline Planning: Demonstrating Professional Management Capability
Submitting a clear, reasonable budget allocation and project timeline is crucial for showcasing management competence. The budget should be detailed for each component, specifying the purpose and amount of various costs to ensure rational and efficient fund utilization.
Simultaneously, develop a detailed project schedule outlining milestones and key nodes for each phase, along with corresponding contingency measures, to ensure timely project completion. For example, define timelines and expected outcomes for each R&D stage; plan promotion channels, timelines, and expected results for the market launch phase.
3. Integrate Social Benefits: Enhancing Project Value and Appeal
Emphasizing the project’s social impact in the application – such as promoting sustainable development or driving digital transformation – aligns closely with Hong Kong’s technology development goals, thereby increasing its attractiveness. For instance, an environmentally friendly project can reduce pollution and enhance the company’s social image; a digital transformation project can improve operational efficiency and adapt to evolving trends. Use specific data and case studies to demonstrate the project’s positive social contributions, showcasing its comprehensive value.
Additionally, preparing a detailed business plan and collaborating with professional consultants (e.g., HONIK BIZ) is recommended. Leveraging their extensive experience and expertise, professional consultants can provide targeted advice and guidance to help optimize the application content and improve the success rate.
Bringing Your Product to Market Rapidly Post-ESS Approval
Securing ESS funding is a significant step; rapidly commercializing the product is key to achieving success. HONIK Biz, in collaboration with Arachne Group Limited（https://hkweb.com.hk）, offers a suite of solutions including website development and promotional operations to assist enterprises in transforming R&D outcomes into market-ready products.
Through professional website development, we help enterprises create distinctive, user-friendly websites that effectively showcase product advantages and features, attracting potential customers. Concurrently, employing effective promotional and operational strategies – such as Search Engine Optimization (SEO) and social media marketing – enhances product visibility, expands market share, and strengthens brand awareness and user engagement.
