The Innovation and Technology Bureau launched the Technology Voucher Programme (TVP), abbreviated as “TVP,” as a pilot scheme in November 2016. In February 2019, the program was made permanent and the funding cap was increased to HKD 400,000. Further enhancements were made in the 2020 Financial Budget, raising the funding cap to HKD 600,000, increasing the subsidy ratio to three-quarters, and raising the application limit to six times. The Technology Voucher Programme is among the most popular government funding initiatives. However, many companies intending to apply for the Technology Voucher have reported encountering numerous challenges
Extended Reading: Technology Voucher Programme
Before applying for the Technology Voucher, applicants need to prepare the following documents as outlined in the Innovation and Technology Bureau’s Technology Voucher Application Guide:
Extended Reading: Technology Voucher Programme (TVP) Application Process
【TVP Technology Voucher Funding】The quotation process for technology projects has strict requirements and is also one of the necessary conditions for a successful Technology Voucher application. Many small and medium-sized enterprise clients have reported that the Technology Voucher quotation process is their major pain point because any negligence or omission not only affects the Technology Voucher application but may also lead to legal risks.
Quotation is a common business practice, and any enterprise or organization involved in procurement will generate quotations. However, the difficulty arises in the case of “Technology Voucher quotations” because the process of private enterprises collecting procurement differs from that of the government. Government departments, statutory bodies, and projects receiving government funding must undergo standardized procurement procedures. Projects exceeding HKD 50,000 require three written quotations, and those exceeding HKD 300,000 require five written quotations. Each written quotation must include an integrity and non-collusion declaration.
Under normal circumstances, the lowest quoted supplier should be selected, unless sufficient reasons are provided otherwise. In addition to submitting the Technology Voucher supplier quotation, applicants must request the Technology Voucher supplier to sign the “Probity Clause” and “Non-Collusion Clause” for each written quotation. Furthermore, individuals related to the Technology Voucher applicant company (such as owners, shareholders, management, or their relatives, or individuals involved in the quotation process) should not participate in bidding. In other words, the Technology Voucher quoting supplier must be unrelated to the applying company.
The use of government funds must indeed be fair and just, free from bias due to personal relationships of public officials. However, officials responsible for policy formulation often have limited understanding of the private sector. In the private market, which consists largely of small and medium-sized enterprises (SMEs), decision-makers are often the owners, and the relationship between suppliers and owners can significantly influence procurement decisions. The dynamics of relationships in private companies differ significantly from those in government. Government personnel follow established procedures as employees, while private company owners and suppliers build relationships based on trust and emotions.
However, since Technology Voucher funding is disbursed by the government, it must adhere strictly to government procedures. This can be challenging for many businesses. For instance, even if a private enterprise has already selected a specific technology system supplier, the Technology Voucher program’s requirements may necessitate obtaining quotations from several other suppliers. In private companies, requesting quotes from suppliers who are certain to be unsuccessful can be seen as redundant, costly, and a source of unnecessary trouble. According to competition regulations, each Technology Voucher supplier must independently provide a quotation to ensure that prices are determined through fair competition. Violating these regulations may lead to civil and criminal liability. This process consumes a significant amount of time and effort for many companies.
Applying for the Technology Voucher requires filling out a project proposal. Faced with a blank page, many applying companies find it challenging to get started.
Let’s review the guidelines for applying for the Technology Voucher:
1.Suggested projects should be relevant to the business. For example, a manufacturing company can apply to develop a new production automation system to enhance production efficiency and reduce costs. This project is closely related to the company’s business and can bring substantial benefits and returns. Another example is a hospital applying to develop a new healthcare data management system to better handle patient information and medical services. This project is also closely related to the hospital’s business, improving patient satisfaction and the quality of medical services, while also bringing higher efficiency and a competitive advantage to the hospital.
4.The service provider’s track record, for example, a medical equipment manufacturing company wants to apply for the Technology Voucher to develop a new surgical instrument. They need to find a supplier with relevant expertise and experience to assist in the project implementation. When selecting a supplier, the company needs to review the supplier’s track record to ensure they have the necessary technical expertise and experience and can complete the project on time. Additionally, the company needs to confirm the supplier’s professional capabilities and work attitude to ensure the smooth progress of the project. An e-commerce company plans to apply for the Technology Voucher to develop a new order management system and needs to hire a technology supplier to complete the project. During the application process, the company needs to provide information about the technology supplier, including their track record and successful cases. If this technology supplier has successfully developed similar order management systems in the past and has good customer reviews and feedback, it will help demonstrate the supplier’s track record and reputation, thereby increasing the success rate of the company’s Technology Voucher application. Conversely, if the supplier has a poor track record, or has been complained about by customers for not completing projects on time, the company’s application may be rejected.
In fact, the project proposal must enable the Innovation and Technology Bureau to understand how the technological solution will assist the applying company’s business or transformation. Therefore, the project proposal must clearly outline the current problems and challenges, as well as the expected outcomes and improvements after the project implementation. For example, it should specify how much faster production will be or how much manpower can be saved.
If you have any questions about the above three points, feel free to consult with our professional Technology Voucher consultants.
Extended Reading : Frequently Asked Questions About Technology Voucher