Macroeconomic modelling of R&D for the twin transition

Macro-economic models are widely applied across the EU to support strategic planning for R&I and the green transition.

However, these models do not include a detailed representation of R&I policies and do not explicitly model green technologies and the economic sectors that develop these technologies, the performance of R&D and its role in creating first mover advantages, monopoly rents, and eventually successful deployment of the green and digital technologies.

To respond to these challenges, TWINRD aims to develop new data, technology matrices, models and enhance leading existing macro-economic modelling (GEM-E3 and NEMESIS).

To this end TWINRD will develop innovative and interdisciplinary approaches for the enhanced modelling representation of R&I and innovation policy in EU-27 and improve the integration of R&I activities in applied macro-economic models based also on the collection, empirical analysis and integration of new data and technology matrices for green and digital technologies into the macro-models.

TWINRD will develop a new innovative, open-source model specifically designed to address the Twin transition that goes beyond the standard approaches and will be both supply and demand driven.

The advanced modelling tools will be used for the evaluation and assessment of R&I policy impacts on socio-economic and environmental indicators aiming to distil policy-relevant insights.

All datasets, models and sets of software will be made freely accessible to stakeholders and the public in the TWINRD online platform and in other channels.

The entire project will be based on active stakeholder interactions and inclusive dialogue to co-design the research and scenarios explored based on the creation of TWINRD open forum.