This paper provides a critical account of the role of universities in the development of innovation and technology in Hong Kong.To do so, the paper examines the political economy of Hong Kong's innovation and technology development. It outlines a finance-led regime, under which the vision of long-term innovation initiatives is transformed into short-term finance events, and the development of an entrepreneurial culture in society and in universities is neglected. The paper also suggests that the current research funding system and the rise of managerialism in the higher education sector restrict the development of academic entrepreneurship, though universities play a significant role in the innovation system. The paper closes by examining the recent changes in higher education policy and governance, the intensification of integration with mainland China and their implications for prospects of advocating a culture of innovation and promoting innovation and technology in Hong Kong.