On 19 February 2025, the TWINRD Open Forum officially launched online, bringing together experts, policymakers, and stakeholders for an engaging discussion on improving research and innovation (R&I) policy evaluations for green and digital transformations.
The event showcased the importance of collaboration and cutting-edge modelling techniques to support Europe’s twin transition. As Daniel Cassolà (ISINNOVA) stated in his opening remarks:
“This project is about more than just data and models—it’s about fostering an inclusive dialogue to co-create the policies that will shape Europe’s green and digital future.”
In introducing TWINRD’s scope, Kostas Fragkiadakis (E3Modelling) explained :
“The twin transition isn’t just about adapting technology—it’s about understanding the ripple effects of innovation across every sector of the economy.”
TWINRD addresses this challenge by developing sophisticated frameworks that represent technological advancements and their economic impacts with unprecedented detail.
The two core models: GEM-E3 & NEMESIS Updates and Upgrades
The event highlighted the key advancements foreseen in the two foundational models that underpin the TWINRD project:
- GEM-E3
A large-scale economic model capturing the interplay between the economy, energy, and the environment. The latest updates will refine its capacity to assess the socio-economic impacts of clean technology manufacturing, including sectors such as solar, wind, and electric vehicle production. In discussing the model’s evolution, Fragkiadakis noted:
“Our new spillover framework allows us to better understand how innovations travel between countries and sectors—this is essential for capturing the full economic impact of R&D investments.”
- NEMESIS
A macro-econometric model that provides in-depth analyses of the economic landscapes of EU member states, as well as the UK, Norway, and Switzerland. The model now incorporates detailed representations of digital technologies, AI, and green innovations, offering new insights into productivity growth and technological diffusion. According to Pierre Le Mouël (SEURECO):
“By enhancing the representation of AI and ICT sectors, NEMESIS will offer a clearer picture of how cutting-edge technologies are driving economic transformation across Europe.”
The TWINRD conceptual model
Bart Verspagen (UNU-MERIT) illustrated the TWINRD conceptual model, designed to explore how technological innovation drives economic growth while maintaining stable employment levels. It captures the balance between productivity gains from innovation and adjustments in household consumption and business investment to prevent “technological unemployment.”
At its core, the model uses a multiplier matrix to measure how changes in autonomous demand—such as government policies or technological investments—affect output and employment across countries and sectors. This structure allows researchers to simulate the impact of green and digital transitions on the economy in a dynamic, interconnected way.
Built on a multi-regional input-output table, the model reflects economic interactions between countries and sectors, considering factors like income distribution, wage shares, and investment flows. Ultimately, TWINRD aims to provide policymakers with insights into how innovation can drive sustainable growth while ensuring economic stability and inclusiveness across the EU.
Stakeholder Involvement: co-creating a green & digital future
Through the Open Forum, TWINRD places stakeholders at the heart of its research process, encouraging broad participation from academia, policymakers, industry experts, and civil society.
As highlighted by Carlo Sessa (ISINNOVA):
“We believe that meaningful collaboration with stakeholders is essential for ensuring our models reflect real-world priorities and produce actionable insights for policymakers.”
The event also introduced the project’s overall stakeholder strategy, including:
- participatory foresight workshops using the Three Horizons framework to collaboratively develop scenarios for future policy and technological developments;
- interactive sessions for co-designing research and refining modelling frameworks based on stakeholder input;
- open-access data and resources, enabling researchers and policymakers to apply TWINRD’s findings in their own work.
About the Open Forum: continuing the dialogue for lasting impact
The launch of the TWINRD Open Forum sets the stage for ongoing engagement and collaboration. The forum will host:
- annual conferences and webinars to share research insights and foster dialogue among stakeholders;
- targeted outreach to incorporate diverse perspectives from across Europe’s research, business, and policy communities;
- a sustained focus on refining macroeconomic models to better represent the green and digital transformations shaping Europe’s future.
View Open Forum presentations:
Introduction to the TWINRD Project
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