Operationalising the Twin Transition: From EU Constitutional Principles to National AI Strategies

In an era of increasing global challenges, two paradigmatic shifts – the digital and green transitions – have gained traction due to their potential impacts on industrial ecosystems and societal inequalities. Termed the ‘twin transition’, these shifts underscore the synergies between technological advancements and environmental sustainability. Highlighting its importance in post-COVID-19 recovery, the special issue examines the twin transition’s potential to drive industrial innovation and affect social, economic, and geographical inequalities. The seven articles in this special issue explore the impact of the twin transition on corporate innovation strategies and investment, alongside the economic, social, and geographical implications. Key findings underscore the need for diversified technological investments, especially in AI, and enhanced digital infrastructures. Policy recommendations advocate for aiding firms lagging in digitalisation and developing region-specific innovation policies. The research sets a roadmap for future inquiries into the interplay of digital and green transition, broader economic impacts, and policy-driven strategies.

Purpose The aim of this paper is to understand how systemic change agents influence the twin digital and green transitions. The authors build on agency-based theories to argue that transition pathways are influenced by a combination of place-based characteristics, the mobilisation and preferences of systemic change agents (such as local clusters), and the institutional and economic context. The conceptual framework defines the different steps of the twin transition, and it identifies how systemic change agents and geographic characteristics determine the direction and speed of the transition pathway. Design/methodology/approach This paper starts with a literature review to identify the different schools of thoughts on transition pathways and the twin transition, before developing a conceptual framework and deriving policy implications. Findings First, this paper argues that each transition involves three steps: framing, piloting and scaling. Each of these steps is driven by systemic change agents who engage local actors in trust-based collaboration, pool resources, create network effects and exchange information to source solutions for industry-level challenges. Second, the combination of place-based characteristics and the actions of local systemic change agents define the path of the transition and the new (post-transition) equilibrium. Finally, this paper sets out implications for policymakers who are interested in using systemic change agents to shape transition pathways in their local area. Research limitations/implications Further research is needed to provide robust empirical evidence from a range of territorial realities for the hypotheses in this paper. Specifically, the role of systemic change agents, such as trade associations, regional organisations, clusters or research groupings, needs to be investigated more closely. These agents can play a key role in progressing the transition because they already focus on sourcing solutions to joint challenges and opportunities by exchanging information, engaging local actors in trust-based collaboration, pooling resources and fostering network effects and critical mass. Future research should investigate how policymakers can best leverage on these crucial actors to progress or steer transitions and how this varies depending on place-based characteristics. This could include, for instance, training activities, networking and collaboration (e.g. through the European Cluster Collaboration Platform) or clearer sign-posting the key next steps required for the transition. Practical implications This paper identifies specific ways in which local actors can influence the direction and speed of transitions at each stage of the transition: at the framing stage, political entrepreneurship can be fostered through collaboration and smooth information flows between different levels of governance, at the piloting stage, commercial and social entrepreneurship require effective knowledge sharing and a wide and open search for solutions which, in turn, may require capacity building at the local level and coordination across stakeholder groups and levels of governance and effective scaling up can be fostered through network effects, joint commitment from a broad range of stakeholders and pooling of resources to achieve economies of scale. Social implications An important implication of the framework is that, if several places are undergoing a parallel or joint transition, the result may not be convergence between these places. Instead, different places may choose different end points and they may proceed at different speeds. For instance, in the context of the European Union’s green and digital transitions, it is unlikely that every region will transition to a similar level of digitisation or make steps in the same direction when it comes to sustainability. Originality/value This paper plugs a gap in understanding how systemic transitions unfold and how their speed and direction are influenced by different stakeholder groups. This paper develops a conceptual framework to define twin transition pathways and it analyses prominent place-based factors affecting these pathways.

The European Commission’s new industrial strategy launched in 2020 looked to lay the foundations for the twin transition to a green and digital economy. Within the same year, the advent of the COVID-19 pandemic highlighted the need to accelerate the green and digital development of specific sectors of the European Union’s economy. As tourism was arguably hit hardest by the pandemic, it became the first sector for which a transition pathway was developed. The European Commission’s report entitled Transition Pathway for Tourism, published in 2022, described the measures needed to accelerate the twin green and digital transitions within the tourism industry. This review paper focuses on the European Commission’s report and it includes an outline of the characteristics of the green and digital transitions; a brief outline of the review process; the results of a literature search, undertaken to provide an academic context for the paper; a summary of the European Commission’s report with a specific focus on the ‘green and digital transition’ (European Commission 2022a): some reflections on the green and digital transition of tourism; and a brief conclusion. Keywords: twin transitions, green transition, digital transition, tourism industries, Europe

The European Union (EU) has voiced its support for a twin (digital and green) transition. However, in this transition, public values are (re)conceptualised and (re)shaped. Public values entail principles and norms determining rights and responsibilities for actors within a society and the governing bodies and are the foundation for future legislation. To understand the reshaping of public values in the EU twin transition, and whether the EU's current policy trend is sufficient to safeguard public values against the pressures of the twin transition, this research analyses what public values are at the core of the EU's twin transition in EU policy. The analysis of academic research in this article concerning the twin transition has identified 11 public values lying at the core of the twin transition. The examination of EU policy documents concerning twin transition developments reveals six public values embedded in legislation. Additional care should be taken to avoid the mixing of public values, as this risks pressures on public values going unnoticed.

This paper contributes to the literature that critically engages with the so-called ‘twin green and digital transition’ by assessing the twin transition as a policy discourse. Our research question is: why and how is the twin transition legitimised and implemented in the European Union (EU) despite recognised pitfalls and uncertainties? The analysis is based on interpretative text analysis of high-level EU policy documents about the twin green and digital transition and of Member States’ resilience and recovery plans. The paper assesses the political and socio-economic context as a central factor that explains how the coupling of the green and the digital comes to be seen as desirable. Our results show that innovation associated with the digital imaginary is used to discursively reframe tensions between economic and sustainability policy aims as synergies. Legitimacy is derived not only from the promise of win-win ideas but also from the claimed ability of governing institutions to steer the twin transitions in the desired direction and avoid the recognised risks. With regard to implementation, the twin transition logic guided the allocation of funds by framing the need to recover from the COVID-19 pandemic as an opportunity to accelerate the green and digital transitions. Hence, the digital imaginary merges environmental governance with the governance of innovation.

Objective. The objective of the article is to generalize and analyze the theoretical and methodological basis of the green and digital transition of the European tourism ecosystem in the context of the implementation of the renewed industrial strategy of the EU. Methods. To achieve the outlined goal, such methods of empirical and theoretical research were used: literature review, theoretical generalization (to identify, collect and analyze modern research on the digitalization and greening of tourism), a descriptive method (to highlight the methodology of tracking ecological, digital and socio-economic aspects of tourism according to using harmonized data and indicators for the European tourism ecosystem), data visualization (for visualization and grouping of material). Results. Multi-annual EU Work Plan of the European Agenda for Tourism 2030 is characterized in five priority areas, namely: "Enabled policy and governance frameworks", "Green transition", "Digital transition", "Sustainability and inclusion", "Skills and transition support". The methodology of monitoring the green and digital transition of the European tourism ecosystem using the online tool "EU Tourism Dashboard" is highlighted. The indicators of the panel, which are grouped according to the priority areas: "Green transition", "Digital transition" as well as the blocks "Socio-economic indicators" and "Main descriptors of tourism" are summarized, the sources of information for the calculation of indicators are highlighted. The main tools for financing the green and digital transition and increasing the sustainability of EU tourism are substantiated, namely: private investments and loans, sources of EU funding for tourism, EU technical support for the transformation of the tourism ecosystem, programs at the national and regional levels within the framework of cohesion policy.

Closing the prosperity gap between regions has always been a key political aspiration of the European Union – and cohesion policy is the primary means to achieve that goal. Europe is currently undergoing a digital and green transition that is drastically changing the way its economy works. How well prepared are regions to capitalise on the twin transition? What impact will it have on regional cohesion in Europe? We find that greening and digitalising the economy will likely widen the gap between rich and poor regions in the European Union.

Since 2019, the European Union has championed a novel approach to addressing the mounting environmental crises: the so-called ‘twin transition.’ This concept posits that digital innovations and sustainability objectives can reinforce one another, fostering a mutually beneficial relationship. The increasing prominence of the twin transition in policymaking and related discourses seems to subtly reconfigure the very framework of environmental governance. Its pervasive use renders it a quintessential buzzword – albeit a unique one, as it fuses two already prevalent terms: the ‘digital transition’ and the ‘green transition.’ This article explores how the twin transition is constructed within EU policy discourse, examining how these two initially separate transitions are brought together. This integration, however, is asymmetric: the logic of digital solutionism increasingly shapes what qualifies as an environmental problem, thereby digitally framing sustainability challenges. Yet, the fragility of this articulation becomes increasingly apparent. The environmental impacts of digital technologies themselves expose cracks in the assumed synergy between ‘digital’ and ‘green.’ This provides a critical perspective on the digital-solutionist tendencies shaping contemporary environmental governance. Moving beyond these limitations would open new avenues for constructing more multi-dimensional, collectively imagined problem-solving frameworks – ones that harness the potential of digital technologies while acknowledging also its limitations.

On our way of living and doing business digital technologies have a profound impact. The research and innovation strategy is crucial to a more productive, sustainable and green economy. Digital solutions that put people first will open up new opportunities for businesses, encourage the development of trustworthy technology, foster an open and democratic society, enable a vibrant and sustainable economy, help fight climate change and achieve the green transition. The aim of this paper is to research the literature about digital and green transition, hers financial and social impacts on Croatian economy across of the approved projects (for the period 2019 – 2023) to the Croatian micro, small and medium entrepreneurs. Based on these results, the author(s) will contribute to the new knowledge about the green and digital transition and offer recommendations for a sustainable green and digital transition in Croatian and potential finance benefits on Croatian economy. For the purposes of this work, the author(s) used secondary data, analyzing them using the following methods: descriptive research methods, deductive research methods, analysis methods and compilation methods. Obtained results are visible in the number of approved projects proposal and the total value of the projects. The impacts of project proposals on strengthening the sustainability and competitiveness of project holders and their partners is manifested through the number of newly introduced technological solutions related to green and/or digital goals in the year m+2, the projection of the newly employed persons as a result of the implementation of project activities in the year m+2, projected increase in sales revenue in year m+2, predicted increase in exports revenues in the year m+2. On the basis of research of literature and previously conducted secondary data research, the author(s) provide recommendations for the further sustainability of the digital and green transition in micro, small and medium-sized enterprises in Croatia.

European Commission’s six priorities for 2019-2024 are all in line with and leverage each other to support Europe’s twin transition to digitalization and sustainability; aiming to address the challenges posed by the COVID-19 pandemic, The Recovery Plan for Europe adds resilience as key dimension of EU’s progress, while reinforcing its commitment to the green and digital transformation. Counting for more than 99% of the enterprises, employing about two of three people, and generating more than a half of the value added - with similar weights as concerns Romania - EU’s SMEs are the engine of Europe's economy, therefore essential contributors to these transformative processes - as emphasized in the SME Strategy for a sustainable and digital Europe. Against this background, the main questions the paper is addressing are: how ready the Romania’s SMEs are for the twin (digital and sustainability) transition the EU has embarked on? What are RO’s SMEs approaches to and performances on digitalization and sustainability against the EU27 SMEs’ average benchmark? How can the RO’s SMEs twin transition process may be speeded up? The analysis was mainly built on data provided by the Flash Eurobarometer 486: SMEs, start-ups, scale-ups and entrepreneurship (released in September 2020). The review of Eurobarometer 486 data on the two topics will then be examined and discussed, in order for the paper to eventually: identify the gaps between RO SMEs and EU27 SMEs in terms of perceptions, attitudes and behaviors related to the twin transition; explore the challenges (in terms of both opportunities and threats) RO’s SMEs face as regards the twin transition; provide some guidelines able to speed up the twin transition of RO’s SMEs.

The combination of digital transition and green transition – also known as the twin transition – is having a strong impact on international trade, posing new challenges for the World Trade Organization (WTO) and reshaping the development of free trade agreements (FTAs). The article analyzes the impact of the twin transition trend on the international trade system, including the application of new trade policies by major economies such as the United States, the European Union (EU) and China to adapt to this transition. The policies not only directly impact international trade but also create challenges for developing countries, including Vietnam. The article also provides policy implications for Vietnam, focusing on proactively negotiating new-generation FTAs, improving the legal framework on digital and green transitions, and enhancing international cooperation to ensure competitiveness and sustainable development in the context of rapidly changing global trade.

Purpose The twin digital and green transition is crucial for sustainable development, with human intellectual capital playing a pivotal role. This study aims to examine how the chief information officer (CIO) affects corporate twin digital and green transition. Design/methodology/approach Using data from Chinese A-share listed companies between 2008 and 2023, this study uses a staggered difference-in-differences analysis to identify causal effects. This study measures companies’ digital and green transitions based on word frequency in annual reports, with digital and green patent applications serving as supplementary indicators. This study further applies a coupling coordination model to capture the synergy between digital and green transitions. Findings The CIO establishment significantly accelerates the pace of digital and green transitions, while also strengthening the synergy between them. Plausible mechanisms include managerial myopia reduction, internal control quality enhancement, intangible asset accumulation and environmental investment improvement, and the economic intuition behind this is that the CIO provides strategic and technical guidance for the twin transition. The study also finds that the CIO yields more pronounced effects on companies with relaxed financing constraints, non-high-tech industries, light-polluting industries and those located in central and western China. Originality/value This study highlights the critical role of human intellectual capital in the twin transition, offering valuable managerial insights from a strategic decision-making perspective to promote sustainable development.

This article assesses the alignment of the green and digital transitions in the global economy, particularly focusing on EU’s strategies for integrating digital technologies to achieve climate neutrality. It discusses how sustainable digitalization principles can boost the green transition and promote climate neutrality. The study reviews digital solutions that reduce business carbon footprints and mitigate climate change impacts, emphasizing digitalization as essential for driving climate neutrality under current geopolitical conditions. The analysis includes a review of digital tools necessary for analytics, blockchain, energy management, and decisionsupport networks. It proposes creating digital twins of industrial and urban areas to enhance the digital-green transition. Additionally, it explores how the principles of sustainable digitalization act as a booster for both the digital and green transitions, reinforcing each other when aligned correctly. The EU’s policy efforts to promote green transitions in technology sectors and the potential rebound effects disrupting these transitions are also examined. The article underscores the importance of a flexible digital approach, global collaboration, and comprehensive educational initiatives as crucial components for effectively synchronizing the transition towards a digitally-enhanced via climate-neutral economy.

The impact of digital and green transitions (the “ <italic xmlns:mml="http://www.w3.org/1998/Math/MathML" xmlns:xlink="http://www.w3.org/1999/xlink">twin transition</i> ”) brings societal challenges that universities must address proactively by assuming an ecosystem organisational model. Beginning from this premise, this paper aims to investigate how an entrepreneurial university ecosystem having adopted a dynamic evolution model can sustain its stakeholders in facing the twin transition. The study proposes to adopt system dynamics as a methodology for modelling the complexity characterising an entrepreneurial university ecosystem in terms of nodes and knowledge flow in their accomplishment of the twin transition. Accordingly, the paper presents evidence from a case study of an entrepreneurial university ecosystem in South Italy, the LUM University “Giuseppe Degennaro” in Bari. The LUM university evolved in response to the stakeholders' challenges in facing both digital transformation and green transition. Findings show that universities must change quickly to incorporate entrepreneurship activities and complex interrelationships among the various stakeholders according to the complex adaptive system model. Implications for theory and practice regard the novel role of the entrepreneurial university ecosystems actively engaged in sustaining stakeholders' achievement of the twin transition's strategic goals.

The concept of the Twin Transition (TT) – the integration of green and digital transitions – has evolved from a loosely linked policy idea – especially in the EU’s post-COVID-19 recovery agenda – to an emerging topic in academic research. TT research has grown rapidly, focusing on the enabling role of digital technologies in addressing climate challenges and on the environmental impacts of digitalization. Recently, academic interest has turned toward an underexplored aspect: TT’s regional geography. Emerging evidence indicates that the development and adoption of green and digital technologies are shaped by regional characteristics, including local capabilities, institutional settings, and path dependencies. However, systematic understanding of these geographical dimensions remains limited. This paper addresses that gap through a bibliometric analysis of TT-related research with spatial relevance. Using network analysis and bibliographic coupling, the study identifies key research trends, clusters, and gaps. Findings show a fragmented but fast-growing field, with both qualitative and quantitative approaches offering insights across spatial scales. Patterns of scientific output suggest a ‘success-breeds-success’ dynamic, particularly in ICT-strong regions. The paper underscores the importance of place-sensitive policies and localized knowledge in shaping the TT and offers a roadmap for future research into how regional factors mediate this dual transformation.