The Hong Kong / Shenzhen innovation and technology park will be build on the Lok Ma Chau Loop, an area of around 1.2 million square metres that is four times the size of the existing Hong Kong science park, according to a memorandum of understanding (MoU) signed between the two cities.
The Hong Kong Science and Technology Parks Corporation (HKSTP) will set up a subsidiary company to build and operate the Hong Kong / Shenzhen park.
"HKSTP will discuss with the government on the various arrangements and commence the preparation work as soon as practicable," it said.
Fanny Law, chairperson of the HKSTP said: "An innovation and technology ecosystem is taking shape in Hong Kong. The number of innovation and technology companies is on the increase, creating a strong demand for research and development space and offices. The [new] park is about four times the current size of the Hong Kong science park. It will provide land for the long-term development of innovation and technology, thereby enhancing Hong Kong's attraction to the mainland and overseas technology enterprises and research institutions."
At the end of October 2016 there were 622 companies in the Hong Kong science park with a working population of over 12,000 people, and over 250 start-ups.
The establishment of the park has resolved land use issues regarding the Loop that have been in question since 1997, the organisations said.
Technology expert Paul Haswell of Pinsent Masons, the law firm behind Out-Law.com said: "Shenzhen is increasingly looking like the Silicon Valley of China, but it remains to be seen whether this is an opportunity purely for those from Shenzhen to take advantage of the business environment in Hong Kong rather than for Hong Kong to tap into the tech scene, and startup scene, in Shenzhen. Either way, Hong Kong does need to do more to push its reputation as a tech leader in Asia, and one must hope that this is a step in the right direction."