Do creative companies pay higher wages? Micro-level evidence from Bangladesh

Abstract

The study investigates the correlation between research and development (R&D) and training and development (T&D) investments in creative companies in Bangladesh. It aims to understand the economic benefits of fostering a creative corporate environment, as well as its impact on employee wages. We collected data from a sample of companies in Bangladesh, which included expenditures and employee wages. We used multiple regression models to control for potential confounding factors. The findings reveal a positive correlation between R&D investments and employee wages. Companies that allocate more resources to R&D tend to pay higher wages due to the development of new products and processes, enhanced employees' skills, and the attraction of talented and skilled employees. T&D investments also lead to increased productivity and efficiency, which in turn boosts the company's financial performance. Additionally, T&D can improve employee morale and job satisfaction, leading to lower turnover rates and a more stable workforce.. Keywords: Bangladesh, Creative companies, Employee wages, Higher wages, R&D and T&D, Development, Investments.