DETERMINANTS OF ECONOMIC COMPETITIVENESS IN THE CONTEXT OF THE GREEN AND DIGITAL TRANSITION

The paper analyzes the key drivers influencing economic competitiveness within the European green transition and digital transition frameworks. Economic competitiveness is viewed within this paper as the ability to drive sustained economic growth, productivity, and social well-being via innovative mechanisms and strategic public policies. Current literature on this topic produced by the European Commission, OECD, and World Economic Forum suggests that there are four overarching drivers influencing competitiveness: structure, institutions, technology, and environment. The importance of digitalization is stressed as a factor which increases efficiency, transparency, and innovative capability. The green transition is also supportive of competitiveness, which favors eco-innovation, responsible resource management, and low carbon production. The two processes involve complementary effects which give rise to a new paradigm within which sustainability and technological change play a pivotal role. This paper also covers the situation of Romania within the European Union, pointing out the structural weaknesses present within Romania concerning innovation, digital competence, and institutional efficiency, but also highlighting opportunities deriving from access to European funds, implemented within the framework of National Recovery and Resilience Plans. The results confirm that modern competitiveness is no longer solely based on more traditional factors such as costs of labor and export prowess. Rather, competitiveness is increasingly linked to the capacity to balance technological change with environmental sustainability, to build development resilience and to develop inclusive development approaches that can meet policy.