Hong Kong’s push into the low‑altitude economy is gaining momentum. In his 2025 Policy Address, Chief Executive John Lee Ka-chiu pledged to forge ahead with building a competitive low-altitude economy ecosystem in the city.

But what exactly is the low-altitude economy? It is an emerging sector buzzing with potential — focused on the airspace below 1,000 meters from the ground, where drones, electric vertical take‑off and landing aircraft (eVTOLs) and related systems converge. These technologies are already reshaping fields such as logistics, emergency response, public security, and infrastructure inspection, with urban air mobility and aerial tourism poised to follow. This is not futuristic speculation; it is a dynamic new economic frontier.

Global investors certainly see enormous potential in this arena. According to Morgan Stanley, the worldwide market for urban air mobility and drone logistics could surge to $9 trillion by 2050. Governments are also taking it seriously. On the Chinese mainland, for example, a new Department of Emerging Air Economy has been established under the National Development and Reform Commission to coordinate development. Low-altitude maneuvering is no longer just a plot in science fiction — it is industrial policy and capital formation in real time.

But Hong Kong’s own skies are constrained. Our dense urban fabric and population of 7.5 million mean we will not host the world’s largest fleets or the widest drone corridors. The question, then, is not whether to participate, but how. The answer from our research is clear: Demonstrate at home to serve the world. To achieve this, a comprehensive development strategy is needed that encompasses infrastructure and regulations, innovation and talent, as well as industry and services.

The low-altitude economy is Hong Kong’s opportunity to reinforce its global role. Success will not be measured by the number of drones in our own skies, but by how deeply Hong Kong is embedded in the global low-altitude supply chain

Skeptics argue that Hong Kong is too crowded and complex for widespread drone use. Yet, this very challenge is also an opportunity. By getting it right, Hong Kong can become the world’s showcase of “sky urbanism” — the seamless, safe integration of low-altitude flights into urban life.

The foundation lies in infrastructure and regulations. We must build a multilayered network that manages the low-altitude airspace as carefully as we manage our roads. This means reliable communications for beyond-visual-line-of-sight drone control, comprehensive surveillance to keep every flight secure, backup systems for when primary signals fail, and hyperlocal weather tracking to anticipate risks.

By tying all these together into a central management system, we turn our famous density into our greatest asset. If it works in Hong Kong, it will work anywhere. The goal is not to fill our skies with drones for their own sake, but to create a blueprint that cities around the world can adopt.

Critics could also argue that Hong Kong is currently just a technology user, whose homegrown talent pool is too small to compete in low-altitude research and development. This overlooks Hong Kong’s strengths in innovation and talent, which, in conjunction with the government’s plans to establish the “Study in Hong Kong” brand, can help the city become an international talent hub for low-altitude technology.

The government’s Smart Traffic Fund — which currently focuses exclusively on road-based solutions — can be pivoted to also support research work on low-altitude technology. By using this mechanism to steer our universities toward the critical yet underfunded task of targeting global challenges such as cybersecurity, we transform our compact size into a catalyst for agile, world-leading breakthroughs. This focused approach not only serves local needs but also positions Hong Kong as a world-class net exporter of essential low-altitude technology.

We should also train talent for the world, not just for ourselves. The government should establish Hong Kong as the premier global academy for drone pilots. By creating modular courses and bridging programs for international professionals, we will cultivate a talent hub that supplies skilled pioneers for our own market and, crucially, for the entire region.

To those who argue that these efforts lack immediate commercial payoff, the greatest revenue lies in industry and services, that is, building a global nexus and gateway for low-altitude enterprises. Hong Kong’s strategic move is to become the central hub where standards are set and quality is guaranteed.

Just as Montreal rose to prominence by housing global civil aviation rule-making, Hong Kong can do the same for low-altitude flights. By bridging regulatory approaches between the Chinese mainland and the rest of the world, and leading the global debate on safety, data, and liability, we not only host discussions but also attract the entire industry. When the rules are written here, the businesses and capital will base themselves here.

However, standards are only valuable if they are proven. That is why we must also build a world-class, one-stop testing and certification pipeline in Hong Kong. Leveraging our mutual recognition agreements with over 100 economies, we can become the preferred export gateway for low-altitude economy-related products. By offering targeted accreditation for everything from batteries to eVTOLs, we can issue certificates that serve as global passports for Chinese manufacturers to access markets in Europe, Southeast Asia, and beyond.

In short, the low-altitude economy is Hong Kong’s opportunity to reinforce its global role. Success will not be measured by the number of drones in our own skies, but by how deeply Hong Kong is embedded in the global low-altitude supply chain. We will not compete on size, but we will lead by influence. By being at the epicenter of trust, standards, and talent that enable this nascent industry globally, we will not just participate but power its growth in cities everywhere.

The sky is not the limit — so long as we aim beyond our shores.

Ryan Ip is vice-president and executive director of Public Policy Institute; Jason Leung is head of Land and Housing Research; and Zhang Feiyang is research manager — all at Our Hong Kong Foundation.

The views do not necessarily reflect those of China Daily.