ASSESSING THE IMPACT OF THE ENERGY TRANSITION, THE INTEGRATION OF DIGITAL TECHNOLOGIES AND THE PROMOTION OF FINANCIAL INCLUSION ON SUSTAINABLE GROWTH DYNAMICS IN THE EUROPEAN UNION

In the context of the European Union's transition towards a sustainable economic model, the circular economy, innovation and resource efficiency play a key role in achieving the goals of climate neutrality and economic competitiveness. This study analyzes the relationship between research and development (R&D) expenditure, renewable energy use, private investment in the circular economy and packaging waste generation in the EU Member States, using a dynamic econometric Arellano-Bond model applied to a panel dataset. The results show that R&D investments are characterized by persistence over time, being positively influenced both by the increasing share of renewable energy in gross final consumption and by the private sector's involvement in financing the circular economy. In contrast, the generation of packaging waste does not show a significant impact on innovation spending, suggesting that waste management is regulated through administrative policies rather than additional research allocations. These findings underline the importance of integrated public policies that support the energy transition and stimulate private sector participation in the development of sustainable solutions. The study also highlights significant disparities between Member States in the level of investment in the circular economy and the uptake of renewable energy, suggesting the need for tailored strategies to bridge the existing gaps.