European University of Lefke (EUL), Faculty of Economics and Administrative Sciences Faculty Member Assoc. Prof. Dr. Derviş Kırıkkaleli’s work titled Corporate Quality and the Effect of Bank Finance on Technological Innovation, which was prepared in cooperation with, Chenguang Wang, Cuixia Qiao, and Rahil Irfan Ahmed, was published in the Technological Forecasting & Social Change magazine of Elsevier publishing house, one of the most prestigious magazines in the field. In this study, the effects of bank finance and institutional quality on technological innovation were investigated for the BRICS countries namely Brazil, Russia, India, China and South Africa. These countries are expected to be the most powerful future suppliers of total goods, services and raw materials produced in the world by 2050.

Kırıkkaleli gave the following information about the study; The critical role of technological innovation in productivity and resource revenue growth remained relatively passive until the fourth industrial revolution took over. The extraordinary advances in artificial intelligence and the internet are dramatically changing society and every sector of the economy, banking and business. The introduction of new technologies in the fourth industrial revolution greatly increases world income. As in all areas of the economy, the industrial revolution 4.0 has unprecedented implications for the banking sector. Due to the introduction of digital technologies, there has been a significant decrease in finances, which changes the performance of banks. It has been observed in recent years that digital technologies have increased the performance of banks as they encourage a competitive environment among businesses. Besides, technological innovation is recognized as the main factor in achieving superior productivity levels. Bank financing is considered one of the important factors in determining technological innovation.

EUL Lecturer Assoc. Prof. Dr. Derviş Kırıkkaleli concluded his statement by saying, “Many newly developed econometric models were used in the study; This study showed that bank finance, institutional quality, high technology exports and GDP positively affect technological innovations. Large-scale capital investment is a prerequisite for industries to adopt technologies. Therefore, access to finance that will enable companies to implement advanced technologies and undertake high-cost innovation initiatives should be facilitated. Thus, bank finance will play an important role in increasing innovation and productivity. With poor institutional quality, countries cannot provide a conducive environment in which firms can innovate successfully. Thus, countries should work to strengthen their institutions to develop their technological innovations.