High-Leverage Hiring Schemes to Retain Deep Tech Talents Without Burning Equity in Hong Kong

Lewis Lee

Nov 19, 2025

Startup Funding

Hong Kong continues to struggle with retaining high-tech talent.

Even with its impressive capacity to produce world-class PhD researchers and engineers – through world-class institutions such as HKUST, HKU, CUHK – many deep-tech professionals still face obstacles that limit their ability to grow and remain in the city, such as:

High cost of living (rent, food, transport)
Brain drain to US/Europe (postdocs often aim for US tenure-track roles)

For deep-tech startups, the Research Talent Hub (RTH) helps to offset this structural disadvantage by reducing direct competition with major corporates for talent. Firms such as AIA, HSBC, and Alibaba’s tech labs regularly offer HK$45 - 60k per month to senior engineers, making it difficult for startups to compete without such support.

As the least understood but most powerful tool in Hong Kong's startup toolkit, RTH is a government-backed talent subsidy program that reimburses up to 50% of researcher salaries, allowing startups to hire PhDs and senior engineers at below-market rates without diluting equity.

RTH as a Competitive Advantage

A PhD researcher can earn:

Corporate: HK$50 - 60k/month (but role is operational, not R&D-forward; limited autonomy)
Bootstrap Startup: HK$30 - 40k/month (equity incentive, but equity is risky; might not vest)
RTH-subsidized Startup: HK$35 - 45k/month (RTH covers HK$35k, founder tops up to HK$40 - 45k) + equity (because not all salary is on founder's dime) + access to HKSTP/Cyberport labs and peer networks

The RTH subsidy makes it economically viable for a startup to offer competitive salaries, plus equity. Without RTH, you'd have to choose between them.

Which RTH Variant Fits Your Setup? A Breakdown by Company Type

RTH-ITF: For Startups with Approved ITF R&D Projects

If you've secured funding from the Innovation and Technology Fund (ITF) for an R&D project, RTH-ITF lets you hire researchers to staff that project.

Key Features:

Engage up to 4 researchers simultaneously
Maximum 36-month engagement per researcher
Salary support: HK$20,000/month (Bachelor), HK$23,000 (Master), HK$35,000 (PhD)
PhD researchers also receive HK$10,000/month living allowance (HK$45,000 total)

Example: A biotech startup with an approved ITF project hires 3 PhD researchers. Total RTH budget: 3 researchers × HK$45,000/month × 36 months = HK$4.86M in talent subsidy.

RTH-TC: For Pure R&D Technology Companies

Don't have an ITF project yet? RTH-TC is more flexible. Any Hong Kong-registered technology company conducting or planning R&D can apply.

Key Difference: No ITF precondition. You apply directly to RTH-TC and begin hiring immediately. Same salary caps (HK$20 - 35k/month), same 36-month window, same up-to-4-researcher limit.

Ideal for: Early-stage deep-tech companies, AI startups, advanced manufacturing firms.

RTH-NIAS: Advanced Manufacturing & Strategic Industries

Newest variant (introduced in 2025): If your startup qualifies for the New Industrialisation Acceleration Scheme (NIAS) – focusing on AI, biotech, advanced manufacturing, or new energy – you get RTH-NIAS talent subsidies plus a path to NIAS project funding (HK$10M+).

Strategic advantage: This combo essentially lets you build a complete R&D lab without equity dilution.

RTH + Incubation Stacking: The Hidden Multiplier

Here's where the real magic happens: stacking multiple programs without overlap violations.

Each program explicitly prohibits overlapping participation (can't be in Cyberport Incubation and HKSTP Incubation at the same time). But they do allow sequential participation, and they encourage RTH layering.

HKSTP Stack: A Deep-Tech Biotech Startup Example

Cumulative 3-Year Runway: HK$5.56M, zero founder dilution.

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Ready Access to Built Infrastructure

Along with generous salary support, RTH researchers gain:

Lab access: HKSTP's wet labs, clean rooms, testing equipment. Many startups can't afford their own (capex is HK$5 - 20M+). HKSTP amortizes this
Peer cohort: 100+ other startups in your innovation cluster. Informal knowledge-sharing, recruitment referrals, customer discovery
Mentorship network: HKSTP pairs startups with deep-tech mentors (often industry veterans). A researcher benefits from this too
IP protection: HKSTP provides legal support for patent filing; RTH researchers' IP goes to the startup (not the researcher personally), which incentivizes them to stay

This ecosystem effect is hard to replicate outside Hong Kong.

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Year 1: Ideation + Seed R&D

Apply to HKUST Co-Ideation (HK$100k, 6 months)
Simultaneously apply to HKSTP Incubation (HK$1.29M, but staggered; don't enroll both at once)
Use Co-Ideation to refine business case + conduct regulatory landscape review
At Co-Ideation completion, enroll in HKSTP Incubation (fast-track admission)
Start RTH-TC applications immediately: hire 2 postdoc researchers (HK$45k/month each = HK$1.08M/year)
Total Year 1 Runway: HK$100k (Co-Ideation) + HK$280k (Incubation Year 1 tranche) + HK$1.08M (RTH-TC) = HK$1.46M, zero dilution

Year 2: Scale R&D

Continue HKSTP Incubation (HK$280k tranche 2 + HK$150k rent subsidy)
Hire 3rd researcher via RTH-TC (or apply for RTH-ITF if you've won an ITF R&D project): 3 researchers × HK$45k × 12 months = HK$1.62M
First customer engagement (pharma licensing deal preliminary discussions)
Total Year 2 Runway: HK$430k (Incubation) + HK$1.62M (RTH) = HK$2.05M, zero dilution

Year 3: Proof-of-Concept + Series A Prep

HKSTP Incubation final tranche (HK$280k + rent subsidy HK$150k)
RTH subsidies continue (HK$1.62M for 3 researchers)
Preliminary Series A conversations with HKSTP Co-Acceleration scouts
Total Year 3 Runway: HK$430k (Incubation) + HK$1.62M (RTH) = HK$2.05M, zero dilution

Series A (Year 3, mid-year):

HKSTP Co-Acceleration commits HK$8M co-investment
Lead VC commits HK$12M at HK$30M pre-money valuation (20% dilution)
Founders retain ~80% post-Series A

Compare to a biotech that went VC-only at Year 1: Series A at 25 - 30% dilution, pre-money valuation might be HK$15M (vs. HK$30M), and founders are now at ~70%.

Cyberport Stack: A Consumer-Tech AI Startup Example

Cumulative 3-Year Runway: HK$4.91 million, 0% founder dilution

Year 1:

Secure HK$100k from Cyberport CCMF (Creative Micro Fund)
Hire 2 PhD researchers via RTH-TC: 2 researchers × HK$45,000/month × 12 months = HK$1.08M
Total Year 1 runway: HK$1.18M, no dilution

Year 2:

Graduate to Cyberport Incubation: secure HK$150k (phased)
Expand to 3 researchers: 3 × HK$45,000 × 12 months = HK$1.62M
Total Year 2 runway: HK$1.77M, no dilution

Year 3:

Transition to HKSTP Incubation: HK$280k + rent subsidy
RTH-TC continues: 3 researchers × 12 months = HK$1.62M
Total Year 3 runway: HK$1.96M, no dilution

Compare this to a VC-only path: Series A at HK$2M, 20% dilution = founder immediately down to 80% ownership. By Year 3, after Series B, you're below 50%.