This　paper　examines　how　place-based　talent　policies　shape　innovation　dynamics　across　Chinese　cities.　Drawing　on　municipal　“Vying　for　Talent”　initiatives　(2009–2019),　we　analyze　how　these　strategies　reconfigure　firms’　innovation　incentives　through　interactions　with　local　institutions.　Our　mechanism　analysis　reveals　that　these　interventions　enhance　corporate　R&D　intensity　primarily　by　amplifying　expected　returns　through　increased　direct　government　subsidies,　and　by　reducing　innovation　costs　via　lower　effective　tax　rates　and　the　enhancement　of　firm-level　human　capital.　Policy　effectiveness　demonstrates　strong　complementarity　with　local　economic　conditions,　generating　a　“Matthew　effect”　whereby　advantaged　cities　achieve　greater　returns.　This　spatial　differentiation,　particularly　pronounced　among　private　and　high-tech　firms,　suggests　talent　policies　may　reinforce　existing　geographical　hierarchies　of　innovation　capacity.　©　2025　Elsevier　Ltd