Research today is regarded as one of the cornerstones of education and is an important component for quality education. In Hong Kong, research has continually been nurtured by the UGC and its Research Grants Council (RGC), the Administration through its various funding schemes, as well as private funding agencies. These collective efforts have achieved the present culture of research which is fertile, varied and flourishing.

The deepening research culture in higher education is evidenced by statistics. In the triennium under review, the ratio of university expenditure on research to Hong Kong's GDP increased from 0.29% in 1997-1998 to 0.39% in 2000-2001. This marked a substantial increase in research spending, when compared with 0.11% at the beginning of the decade.

Looking back at the RGC's modest beginning in 1991, the vast difference is noted between its initial budget of HK$100 million and the Earmarked Research Grants of 2001-2002 at over HK$500 million. More importantly, the link between research achievements and the industries is getting stronger to the benefit of our economy.

Quality and quantity in research proposals have grown hand in hand. These are encouraging signs that our city will join the international community in developing a knowledge-based economy through research. It also symbolises a strong maturing process for higher education in Hong Kong as it evolves and strives to extend the boundaries of human knowledge.