Support for SMEs

To encourage more research and development (R&D) investment in the private sector and encourage companies to establish stronger partnership with local public research institutes.

Funding Scope

The Scheme provides a cash rebate equivalent to 40% of a company's eligible expenditure in two types of applied R&D projects:

• R&D projects funded by the Innovation and Technology Fund (ITF); and
• R&D projects funded entirely by companies and conducted in partnership with designated local public research institutes* ("Partnership projects").

For Partnership projects, the following types of work or activities will not be eligible for cash rebate under the Scheme:

• Product enhancement/customisation and related work, conventional operation or/and business activities without scientific research content, such as product design and general system automation;
• Companies' in-house R&D work; and
• Research projects outside the science and technology fields such as market researches and management studies.

*The designated local public research institutes for Partnership projects include:

• Local universities;
• R&D Centres set up by the Government;
• Hong Kong Productivity Council;
• Vocational Training Council; and
• Hong Kong Institute of Biotechnology.

• A company incorporated in Hong Kong under the Companies Ordinance (Cap. 622) or an entity registered in Hong Kong under the Business Registration Ordinance (Cap. 310); and
• Not a government subvented organisation*; and
• Not a subsidiary of any government subvented organisation

*A government subvented organisation means an organisation that receives subvention from the Government on a recurrent basis. The subvention contributes towards the organisation's operational expenses, in exchange for its service to the public. The recurrent subvention may account for the bulk of the organisation's income or may just be a token contribution/sponsorship forming a small percentage of the organisation's total income.

• Research and Development Cash Rebate Scheme is open for application all year round. An enterprise should register as a user and submit its application through the Cash Rebate Scheme Funding Administrative System (CRSFAS) within two years after completion of the relevant R&D project (in the case of Partnership projects, applicants are also required to submit a pre-registration via the CRSFAS).
• The designated local public research institution or other parties cannot submit application on behalf of the company.