Hong Kong's competitiveness in the past has been achieved with policies that protect private property rights, maintain open and competitive markets, and limit the role of the government. There is, however, controversy over the proper economic policies and business strategies that will bring prosperity in the future. The establishment of the Hong Kong Special Administrative Region and the onset of the Asian financial and economic crises have provided an opportunity to re-examine our economic policies and business strategies.

Hong Kong is not only the economic and business hub of the region, but by virtue of her special relationship with the Chinese hinterland and her pivotal role in the Asia-Pacific she can offer useful lessons for many in this area. No other location in the Asia-Pacific is as well situated for the study of economic policy and business strategy. Few other fields will have quite the same impact on Hong Kong's future and, given Hong Kong's regional economic links, that of the region. HIEBS aims to create an area of academic excellence, not just in regional terms, but on a global scale.

The University of Hong Kong is uniquely placed to build on its strength in economic policy and business strategy studies. Its research strength is located in the The Hong Kong Centre for Economic Research (HKCER) and the Asia Pacific Economic Co-operation Study Centre (APECSC). These two centers have supported some fifty studies on economic policy and business strategy focused on Hong Kong. Their work have had wide influence on economic policy and business strategy thinking in Hong Kong. Their importance is often in opening up subjects and issues not likely to be tackled otherwise. In 2009, the Asia Pacific Economic Co-operation Study Centre was consolidated under the Hong Kong Institute of Economics and Business Strategy as a programme area.

The close collaboration between the research centers and HKU Business School performs an essential role in fostering synergy between teaching and research. As a repository of information and learning these units have the unrivalled capacity to train students to become practitioners, researchers and consultants in the area of economic policy and business strategy.

Looking beyond The University of Hong Kong, the research and teaching strengths in economics and business strategy that is present in the higher education sector and the community as a whole are truly impressive. There is every reason to believe that the teachers and researchers in this area will make an impressive contribution to building the body of analysis and knowledge on Hong Kong and its future development. HIEBS will seek to work closely with them and also to link up with overseas research and education centers with a common interest.

The University Grants Committee(UGC) announced on 20 September 1999 its choice of three research institutes to receive funding in the first round of its new Areas of Excellence initiative. The Hong Kong Institute of Economics and Business Strategy (HIEBS), sponsored by The University of Hong Kong, was awarded a HK$36.2 million grant.

The five-year grants are administered by the UGC, an advisory body to the government on the development and funding of higher education in Hong Kong. "The UGC is pleased to see that all three proposals have demonstrated a clear potential to be recognized internationally as of equal status to their peers," said Dr. Alice Lam, UGC chairman.

The funding program was developed to encourage UGC-funded institutions to build upon their existing strengths and nurture them into Areas of Excellence, or world-class research programs. Dr. York Liao, chairman of the UGC's Areas of Excellence Sub-Committee, explained, "All three proposals are based on firmly established strengths in the concerned disciplines. They also involve teams with the right credentials and potential for high synergistic impact, and have a clear and viable management and governance structure."

The primary goal of HIEBS is to undertake and publish authoritative and independent research of relevance to decision makers and of interest to the public. Research conducted by HIEBS are rigorous in academic methodology and applied in character so as to bridge theory and practice. For such studies to have an impact they have to be communicated to decision makers and the public effectively. Therefore, HIEBS adopts a communications strategy to reach out to the wider community so that its academic work are not confined to academic audiences alone.