In a budget announcement, Hong Kong's financial secretary Paul Chan is setting aside $50 billion for Innovation and Technology development. "To shine in the fierce I&T race amidst keen competition, Hong Kong must optimize its resources by focusing on developing its areas of strength, namely biotechnology, artificial intelligence, smart city and financial technologies," he said. An Innovation and Technology Fund will get a $10 billion injection, earmarked for applied research and development work. There will also be additional tax deductions for domestic expenditure on R&D incurred by enterprises. Enterprises will enjoy a 300% tax deduction for the first $2 million qualifying R&D expenditure, and a 200% deduction for the remainder.