Exploring the True Impact of Talent Subsidies on Sustainable Innovation

Do government cash subsidies for hiring top talent help them become more innovative, profitable and sustainable? How can these policies become more effective? These are the questions driving Dr Liu Yiyang’s research when she was a visiting PhD student at the Centre for Governance and Sustainability (CGS) at NUS Business School, supervised by CGS Director Prof Lawrence Loh.

Her research work examines the real-world effects of government cash subsidies for hiring top talent. The stakes are high. As public funds are invested to help companies transition towards sustainability, it is critical to understand whether the policies truly support long-term social and environmental goals.

Key Insights

Her findings published in Research Evaluation, a journal of the Oxford University Press, suggest that talent subsidies can be powerful tools for boosting green innovation and strengthening a company’s long-term performance, even if short-term costs may occur. “Subsidies work best when paired with complementary measures such as research and development grants or stricter environmental regulations,” Dr Liu noted.

Building on these insights, Dr Liu, who is now teaching at Guangdong University of Education, plans to explore companies’ internal usage of the subsidies, such as how they allocate funds, manage talent development, or integrate sustainability into corporate strategies. She also aims to test these policy effects across various sectors and regions to refine practical recommendations for businesses.

A Transformative Year at CGS

Dr Liu said her time as a visiting PhD student at CGS was “incredibly valuable”. “It provided a truly global perspective on my research into sustainable business practices,” she reflected.

Through access to NUS’s world-class academic resources and seminars, Dr Liu deepened the theoretical framework of her thesis and refined her research methodologies. “Most importantly, engaging with leading scholars and a diverse international community of peers offered critical feedback, sparked new ideas, and helped me position my research within a broader global context, significantly strengthening the quality and impact of my work,” she said.