Case Development Program

Abstract

Over the past decade, China has witnessed a swift growth in mobile payment adoption, with Alipay and Wechat Pay leading the way. This fast development can be attributed to several factors such as consumers’ enthusiasm with the convenient and user-friendly interface; growing penetration of smartphones; governmental regulator’s (People’s Bank of China) ability to oversee and regulate institutions; and support from service providers and technology giants, Tencent and Alibaba. This case highlights the latest developments in mobile payment industry in China, with a specific focus on main stakeholders across the value chain and their support for a robust mobile payment system. It discusses the emergence, key drivers, and benefits of mobile payments, examining why China is ahead of the rest of the globe in this industry and what are the strategic options for mobile payments to grow.

Learning Objective

This case allows students to gain a basic understanding on how mobile payment adoption succeeded in China. It also provides a context for discussing strategies adopted by different stakeholders along the value chain to facilitate the adoption of mobile payment in China. The case can also serve as a starting point to discuss what might be the next step going forward in mobile payments in the Mainland.

Abstract

Established in 2015, the Innovation and Technology Bureau (ITB) of the Hong Kong Special Administrative Region was tasked with transforming the city into an innovation and technology hub with a vibrant ecosystem for scientific collaboration and interaction among innovation actors from around the globe. To stem Hong Kong’s decline relative to its regional competitors in innovation and technology development, first Chief Executive Tung Chee-hwa set up the Innovation and Technology Commission (ITC) in 2000. In 2012, Chief Executive Leung Chun-ying announced a plan to set up ITB, but several attempts by the government to obtain funding approval in the legislature between 2012 and 2015 failed. The main argument of the opposition was it was not necessary to have a dedicated technology bureau and that it was a waste of public money. After much debates marked by filibustering by pro-democracy legislators, the funding was finally approved in November 2015.

Learning Objective

This case presents some of the main arguments for and against the establishment of ITB. It can also provide a starting point for students to assess and discuss to some extent whether the establishment of a dedicated bureau was justified or not in light of the current situation.

Abstract

Uber is often hailed as a pioneer of taxi industry that provides point-to-point service via a ride-hailing app. Uber debuted in Hong Kong in 2014. No sooner had it become popular than it was outlawed due to strong opposition from the taxi industry. Despite the restriction, Uber continues to operate openly although suffering occasional sanctions. Society has debated on whether Uber should be legalized. Those who opposed the liberalization of the taxi industry were concerned about the loss of jobs of taxi drivers, safety issues, the lack of third-party insurance, and so on. Others wanted to break the longstanding monopoly and unfair licensing system, and to improve service quality to benefit consumers.

Learning Objective

Students can gain a better understanding of the pros and cons of legalizing Uber in Hong Kong. Students are expected to discuss the obstacles to allowing Uber to operate, and the existing institutional limitations and the capacity of the Hong Kong government to regulate Uber. Students can propose policy solutions to balance the interests of relevant stakeholders like taxi drivers, license holders, and the general public.

Abstract

Since the establishment of the Hong Kong Special Administrative Region, the government has been investing on infrastructure projects–notable examples are Science Park and Cyberport–and R&D under funding schemes mostly administered by the Innovation and Technology Commission to position itself as a regional leader in technology innovation. To speed up technological progress, the government set up a dedicated bureau for I&T in 2015. Hong Kong actively sought cross-harbour collaboration with the Mainland to overcome its lack of expertise, talent, and market. In 2017, the officials of Hong Kong and of Shenzhen jointly decided to build an innovation and technology park in Lok Ma Chau Loop. Hong Kong signed many other agreements with Shenzhen and the other cities in Guangdong Province to boost its regional and global competitiveness. However, to date, Hong Kong lags behind its regional competitors in terms of technological advance. Critics pointed out some of the factors that the government needs to grapple with the problem of being a laggard in technology innovation.

Learning Objectives

The case presents some questions to think about and/or for discussion: Why is Hong Kong falling behind its regional competitors on I&T development? What are the major barriers to the development of I&T in Hong Kong? What might Hong Kong be missing making it a laggard compared to other developed economies? If you were to make recommendations to the government, what improvements would you suggest?