[Technology Voucher] Secret tips for successfully applying for technology vouchers

Introduction to the Technology Voucher Programme (TVP)

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

First Move: Prepare the necessary application documents for the Technology Voucher.

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:

  1. Sales invoices：Only Hong Kong companies currently in operation, regardless of being a limited or unlimited company, are eligible to apply. When submitting the application, proof of actual operation should be provided, including receipts, invoices, and MPF (Mandatory Provident Fund) contribution records for the past three months.
  2. Company business documents：Company business registration, proof of shareholding, etc. Due to the impact of the pandemic, the processing speed of applications by the Innovation and Technology Bureau was noticeably slower in 2020. Therefore, during the waiting period for approval, it is necessary to collect actual operational proof documents every month. If documents such as business registration expire and need renewal during the waiting period, be prepared to submit the latest versions.
  3. The latest versions of all documents：When the Innovation and Technology Bureau is close to approving the application, they will request the applying company to submit the latest documents. Being prepared in advance allows for a quick response to such requests.
  4. Before submitting the application, it is essential to thoroughly check all documents for accuracy.：It is advisable to have an experienced and knowledgeable Technology Voucher Consultant to conduct the inspection. According to unofficial official statistics, cases where approval was terminated due to the submission of incorrect documents exceeded 50% of failed cases. Even if the application is ultimately successful, the need to supplement correct documents can also waste a significant amount of time.

Extended Reading: Technology Voucher Programme (TVP) Application Process

Second Move: When providing a quotation for the Technology Voucher, pay attention to various government procedures.

【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.

In fact, for enterprises lacking a network of technology suppliers, obtaining quotations from suppliers on the internet incurs substantial costs in terms of time and human resources. Additionally, there is the risk of errors in the quotations. On the contrary, our Technology Voucher consultants and supplier matching solutions provide network support and expertise. They issue quotation invitations to suppliers in a fair, transparent, and impartial manner, helping to easily overcome obstacles for applicants. This proves to be a blessing for a wide range of applicants.
 
Extended Reading: 10 successful cases of technology voucher

Third Move: Fill out the Technology Voucher application according to the guidelines.

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.

 

2.Reasonableness of the Budget.For example, a retail company wishes to apply for the Technology Voucher to implement a new e-commerce platform. When evaluating the project budget, the applicant needs to consider costs such as designing and developing the e-commerce platform, website hosting and maintenance fees, and expenses related to data security and privacy protection. Simultaneously, the applicant also needs to estimate the post-implementation benefits of the project, such as increased sales and customer loyalty through the e-commerce platform. If the evaluation reveals that the project budget is excessively high, it may impact the approval of the application. Therefore, when applying for the Technology Voucher, applicants need to carefully assess the project’s costs and benefits, ensure the reasonableness of the project budget, and provide comprehensive information and explanations to demonstrate that the project budget aligns with the application standards of the Technology Voucher.
 
3. Feasibility of the Proposed Project. Assuming a retailer wishes to use Technology Voucher funding to implement a new e-commerce platform. When evaluating the feasibility of the project, factors such as the time, funding, and technical capabilities required for platform development need to be considered. If the retailer lacks sufficient resources or expertise, it may face challenges in successfully implementing the project. Therefore, when applying for the Technology Voucher, it’s essential to investigate whether the company has adequate resources and skills to execute the project smoothly, ensuring the feasibility of project implementation. If the retailer discovers a lack of necessary resources or skills, adjustments to the project plan or seeking partnerships may be necessary. For instance, a logistics company wants to apply for Technology Voucher funding to upgrade and implement an automated warehouse management system. They plan to use the new system to optimize the processes of goods storage and classification, thereby increasing efficiency and reducing error rates. During the application, the company needs to provide detailed information about the existing warehouse management system to demonstrate the optimization benefits of the new system. Additionally, the company needs to present a plan and schedule for the project execution to ensure that it can be completed within a feasible timeframe.
 

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

Seeking quotations for technology systems.

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