Periodic Reporting for period 1 - TWINRD (Macroeconomic modelling of R&D for the twin transition)
Reporting period: 2024-01-01 to 2025-06-30
The green and digital transitions are key priorities for the European Union. Research and Innovation (R&I) policies are essential to support these changes. However, the tools currently used to assess such policies, especially macro-economic models, do not reflect how innovation actually works in the economy. They often miss important elements such as how green and digital technologies develop, how R&D investment creates long-term advantages, or how innovation affects jobs, growth, and sustainability.
The TWINRD project aims to improve these tools by developing new methods, data, and models that better represent R&I and its role in the twin transition. The project focuses on updating two leading macro-economic models used in Europe (GEM-E3 and NEMESIS) and creating a new open-source model that can capture the complex links between innovation, technology, and the economy. This new model will look at both the supply and demand side of innovation and help understand how policies affect economic and environmental outcomes over time.
TWINRD also includes collaboration and stakeholder involvement. The project includes a series of activities such as the development of new technology datasets for green and digital sectors, the improvement of modelling tools to reflect real-world innovation patterns, and the organisation of co-creation workshops and an open stakeholder forum. These actions will support open dialogue with policy makers, researchers, and other stakeholders. The goal is to ensure that the models and scenarios developed are relevant, useful, and based on real needs and experiences.
The project will provide better tools for designing R&I policies that support Europe’s goals for climate action, digital transformation, and long-term sustainability.
The TWINRD project aims to improve these tools by developing new methods, data, and models that better represent R&I and its role in the twin transition. The project focuses on updating two leading macro-economic models used in Europe (GEM-E3 and NEMESIS) and creating a new open-source model that can capture the complex links between innovation, technology, and the economy. This new model will look at both the supply and demand side of innovation and help understand how policies affect economic and environmental outcomes over time.
TWINRD also includes collaboration and stakeholder involvement. The project includes a series of activities such as the development of new technology datasets for green and digital sectors, the improvement of modelling tools to reflect real-world innovation patterns, and the organisation of co-creation workshops and an open stakeholder forum. These actions will support open dialogue with policy makers, researchers, and other stakeholders. The goal is to ensure that the models and scenarios developed are relevant, useful, and based on real needs and experiences.
The project will provide better tools for designing R&I policies that support Europe’s goals for climate action, digital transformation, and long-term sustainability.
The main achievements during this period are reflected in the successfully submitted deliverables. These include:
- The Project Management and Quality Assurance Plan (D1.1) Risk Management Plan (D1.2) and Data Management Plan (D1.3) led by E3-MODELLING AE, which established the foundation for the project’s governance, risk mitigation, and data handling.
- The Technology Flows Matrices for Green and Digital Technologies (D2.1) led by UM/UNU-MERIT, which provided critical data structures linking technologies to economic sectors.
- The R&D Data for Energy, Green, and Digital Technologies (D2.2) led by SEURECO, which assembled essential datasets for modelling innovation in the twin transition.
- The Conceptual Modelling of the Twin Transition (D4.1) led by UM/UNU-MERIT, which reviewed relevant economic theories and developed a theoretical framework to guide empirical modelling efforts.
- The TWINRD Visual Identity and Website (D6.1) and the Communication, Dissemination and Exploitation Plan (D6.2) both led by ISINNOVA, which set the stage for project outreach and stakeholder engagement.
- The Report on Academic, Policy and Societal Outreach (including Policy Briefs) (D6.5) led by ISINNOVA, which documented engagement activities and dissemination progress.
These deliverables represent significant milestones in the TWINRD project, demonstrating progress in scientific and technical development during the first 18 months.
- The Project Management and Quality Assurance Plan (D1.1) Risk Management Plan (D1.2) and Data Management Plan (D1.3) led by E3-MODELLING AE, which established the foundation for the project’s governance, risk mitigation, and data handling.
- The Technology Flows Matrices for Green and Digital Technologies (D2.1) led by UM/UNU-MERIT, which provided critical data structures linking technologies to economic sectors.
- The R&D Data for Energy, Green, and Digital Technologies (D2.2) led by SEURECO, which assembled essential datasets for modelling innovation in the twin transition.
- The Conceptual Modelling of the Twin Transition (D4.1) led by UM/UNU-MERIT, which reviewed relevant economic theories and developed a theoretical framework to guide empirical modelling efforts.
- The TWINRD Visual Identity and Website (D6.1) and the Communication, Dissemination and Exploitation Plan (D6.2) both led by ISINNOVA, which set the stage for project outreach and stakeholder engagement.
- The Report on Academic, Policy and Societal Outreach (including Policy Briefs) (D6.5) led by ISINNOVA, which documented engagement activities and dissemination progress.
These deliverables represent significant milestones in the TWINRD project, demonstrating progress in scientific and technical development during the first 18 months.
The TWINRD project has made important progress in advancing macroeconomic modelling for the green and digital transitions. One of the main results is the development of detailed datasets and technology flow matrices that capture R&D investments, sectoral interlinkages, and international knowledge spillovers. These datasets, compiled from reliable international sources and structured using AI-based text analysis of patent data, provide a high-resolution view of how green and digital technologies evolve and interact with the economy. All datasets are openly accessible through the TWINRD Zenodo community.
The project has also developed a conceptual framework for modelling the twin transition, linking innovation policy to socio-economic and environmental outcomes. This framework supports both the design of a new open-source model and the enhancement of existing tools.
Initial modelling work has focused on upgrading the GEM-E3 and NEMESIS models. The representation of clean technologies has been expanded, with increased granularity for key components such as batteries and electrolysers. These updates incorporate R&D dynamics along specific parts of the value chain, improving the ability to assess innovation-driven impacts on productivity, investment, and emissions. In parallel, the structure of a new model is being developed to capture the complexity of the twin transition, including both supply- and demand-side innovation mechanisms.
These technical developments are supported by stakeholder engagement activities, ensuring that the modelling work remains aligned with real-world needs and policy priorities. Continued refinement of model components and collaboration with technical and policy experts will further strengthen the relevance and applicability of TWINRD outputs.
The project has also developed a conceptual framework for modelling the twin transition, linking innovation policy to socio-economic and environmental outcomes. This framework supports both the design of a new open-source model and the enhancement of existing tools.
Initial modelling work has focused on upgrading the GEM-E3 and NEMESIS models. The representation of clean technologies has been expanded, with increased granularity for key components such as batteries and electrolysers. These updates incorporate R&D dynamics along specific parts of the value chain, improving the ability to assess innovation-driven impacts on productivity, investment, and emissions. In parallel, the structure of a new model is being developed to capture the complexity of the twin transition, including both supply- and demand-side innovation mechanisms.
These technical developments are supported by stakeholder engagement activities, ensuring that the modelling work remains aligned with real-world needs and policy priorities. Continued refinement of model components and collaboration with technical and policy experts will further strengthen the relevance and applicability of TWINRD outputs.