Frequently Asked Questions

The $250 million DesignSmart Initiative# was set up by the Government in 2004 to provide funding support for design projects which aim to promote design as a value adding activity, and the Design Incubation Programme (DIP) at Innocentre.

Under the initiative, the Design Business Collaboration Scheme (DBCS) was set up to meet the needs of local small and medium enterprises (SMEs). The scheme aims to promote the interests and investments of SMEs in design, with a view to upgrading their products and services thereby helping them increase their competitiveness. The approved projects will be funded in the form of a matching grant. Funding support for each SME is subject to a limit of $100,000, for four projects at most.

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The DBCS provides funding support for design projects collaborated between a design company /academic institution and a small-and-medium-sized enterprise (SME). It aims to promote the interest and investment of SMEs in design, with a view to upgrading their products and services thereby helping them move up the value chain and increasing their competitiveness.

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You can download the guide and application form template for the DBCS from the download area of the DesignSmart website. Please submit your application by following the instructions set out in Tips for application. For assistance in filling the application form, please contact the Help Desk of the Design-Business Collaboration Scheme Secretariat (the Secretariat) at (852) 2737 2635.
No application fee will be charged.

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A SME is subject to a maximum funding support of $100,000 to be used in no more than four projects under DBCS. There is otherwise no restriction. Nevertheless, in assessing each application, we will consider the capability of the applicant in deploying adequate resources to complete the project taking into account the number of DBCS projects the same applicant is currently undertaking.

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A SME is subject to a maximum funding support of $100,000 to be used in no more than four projects under DBCS.

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It is difficult to provide any generalized answer. Each application will be assessed on its own merits. Approval of an application will only be given if the Panel is convinced that the application has sufficient merit for approval having regard to the set criteria. Please refer to the funding guide of DBCS for the criteria.

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DBCS is not a venture capital or investment fund. It is neither a loan scheme for private companies, nor a start up fund. As such, projects seeking support of this nature will not be funded.

Also, projects of the following nature are normally not supported:

• design of exhibition booth for specific fair(s)/ trade show(s);
  
  
• design of advertisement and materials for sales and marketing promotion;
  
  
• design of website for basic business communication or on-line shop/platform;
  
  
• software writing / system maintenance;
  
  
• technical engineering work; and
  
  
• production / construction.
  
  

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In considering an application, due consideration will be given to the following factors, wherever applicable:

• to what extent the project can help integrate design into business process;
  
  
• to what extent the project can help transform design activity into tradable deliverables, be it product or service, that manifests exploitation and deployment in the form of intellectual property, which may comprise patent, copyright, know-how or industrial design;
  
  
• to what extent the project can add value to the products or services concerned and increase their competitiveness;
  
  
• to what extent the project can help commercialisation of new products or services and finding pathways to market;
  
  
• whether the applicant design company/academic institution or the applicant SME has been funded by the DBCS before and the amount of funding already granted for such previous projects;
  
  
• the overall planning and organizational structure of the project and capability of the project team i.e. the project team members’ expertise, experience, qualifications, track record, and the resources available for the project;
  
  
• whether the proposed budget is reasonable and realistic, and whether the project has been funded or should be funded by other sources; and
  
  
• any other relevant factors.
  
  

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In general, upon receipt of an application, the Secretariat will first examine the application to determine if the applicants are eligible and whether the information in the application is clear and sufficient. In case more information is required, the Secretariat will e-mail the applicants for more information. The onus to provide information per the request of the Secretariat lies with the applicants. They run the risk of delay in the processing if they fail to respond promptly.

After screening, the Secretariat will submit the application together with its comments to an Assessment Panel for consideration.

At the application stage, both applicant design companies and applicant SMEs are obliged to attend Panel meetings to make presentations on their project as directed by the Secretariat. Failure to attend the Panel meeting twice will be taken as the applicants withdrawing their application concerned. If the applicants have genuine difficulty in attending the meetings, they should separately explain their difficulties and request in writing for another date to attend the Panel meeting. Subject to acceptance of the explanation by the Secretariat, arrangement will be made for them to attend another Panel meeting.

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The Assessment Panel assesses applications, makes recommendations, and monitors approved applications. Its members include officials, professionals, industrialists, businessmen, designers, academics and representatives from industry support organizations. Please find details of the Assessment Panel in the membership list.

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The applicants are required to submit a completion report including details of the results, performance and evaluation of the project within two months from the project completion date. Failure to do so may result in the termination of project. The completion report should be submitted together with:

• a financial statement on accrual basis on the final financial position of the project audited by a certified public accountant; and
  
  
• evidence showing the contribution of the matching fund by the applicant SME.
  
  

On completion of project, both applicant design companies and applicant SMEs are required to make presentation of the outcome of their project to the Panel in accordance with the Guide and as arranged by the Secretariat.

Should the applicants fail to attend the Panel meeting twice, it will be taken as the applicants withdrawing their application and completion report altogether. If the applicants have genuine difficulty in attending the meetings, they should separately explain their difficulties and request in writing for another date to attend the Panel meeting. Subject to acceptance of the explanation by the Secretariat, arrangement will be made for them to attend another Panel meeting.

At the presentation, applicants have to bring along all relevant proofs/ information to demonstrate the work-steps/ design development process involved in the project to facilitate the Panel's assessment. Information on the business/ marketing plan of the project deliverables will also be required. Should the applicants fail to provide the information as required, the projects concerned may be deferred for re-consideration/ the approved funding may be trimmed down as appropriate/ the projects concerned may be terminated.

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Local design company and local SME will be co-applicants in a project application under the DBCS. Either of them, with the consent of the other party, is eligible to lodge an application under the DBCS. The co-applicants should not be related in terms of ownership or management.

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No. Only local design companies and local SMEs are eligible to apply for funding support under DBCS as co-applicants.

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A local company is a company established or incorporated under the Hong Kong laws including the Companies Ordinance.

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A SME refers to-

• a manufacturing business, which employs fewer than 100 persons in Hong Kong; or
  
  
• a non-manufacturing business, which employs fewer than 50 persons in Hong Kong.
  
  

The number of persons employed shall include individual proprietors, partners and shareholders actively engaged in the work of the company; and salaried employees of the company, including full-time or part-time salaried personnel directly paid by the company, both permanent and temporary, at the time of submitting applications.

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As long as the applicant is a company established or incorporated under the Hong Kong laws including the Companies Ordinance and has substantial connection to Hong Kong, it is eligible to apply for the DBCS.

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The Government has set up different funding schemes with their own objectives and eligibility criteria. Projects rejected by others do not necessarily mean they would be rejected by the DBCS. They will be assessed having regard to the vetting criteria of the DBCS.

However, applicants would be required to disclose in the application form whether they have attempted/are attempting to seek funding support from other funding sources.

In general, funding support will not be given to an application which has received funds from other Government sources.

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A declined application may be re-submitted if it has been revised substantially or it has been able to produce new evidence to address the comments made by the Assessment Panel. Subject to the circumstances of the case, it will be put up to the Assessment Panel for re-consideration.

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In general, the core design work funded by the DBCS shall be conducted in Hong Kong unless otherwise approved.

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