The uneven regional implications of twin transition and globalisation

Regions have different capabilities to transition towards green and digital objectives. The local availability of those skills could make the regions internationally competitive and engaged with globalisation patterns, both in the form of foreign direct investments (FDI) and exports. Global actors may be attracted to invest in the knowledge pools where the green and digital competences are developed. This report assesses the different aspects of the regional endowment of green, digital and twin occupations and their relation to the attractiveness of FDI and exports. We focus on the regional endowment of green, digital and twin skills and the role of the enabling (complementary) skills. We show how regions with different green, digital and twin capabilities can attract FDI or have a high amount of exports. We find positive effects of enabling skills on inward FDI and exports. Focused digital and twin skills are generally not related to a higher level of FDI attractiveness or a higher level of exports. Green skills may even have detrimental effects. Thanks to the insights brought upon by this report, policymakers will be able to target places with complementarities between green, digital and twin competences and a high participation in global dynamics, serving as hubs for twin transition. Finally, they could also support the European regions falling behind the twin transition process, unable to attract international investors, and needing policy support.