Scandinavian Working Papers in Economics

Papers in Innovation Studies,
Lund University, CIRCLE - Centre for Innovation Research

No 2024/16: Not all twins are identical: the digital layer of “twin” transition market applications

Milad Abbasiharofteh () and Lukas Kriesch ()
Additional contact information
Milad Abbasiharofteh: University of Groningen, Postal: The Netherlands
Lukas Kriesch: Justus Liebig University Giessen, Postal: Germany

Abstract: A twin (a joint green and digital) transition aims to facilitate achieving the Green Deal goals. The interplay between regional capabilities and twin transition market applications remains understudied. This research utilizes Large Language Models to analyze web texts of more than 600,000 German firms, assessing whether their products contribute to the twin transition. Our findings suggest while AI capabilities benefit the twin transition market applications, clean technological capabilities play a significant role only in highly specialized regions. To facilitate future research and informed policymaking, we provide open access to our developed dataset and AI tools (i.e., the TwinTransition Mapper).

Keywords: Twin transition; TwinTransition Mapper; digital layer; technological capabilities

JEL-codes: C81; C88; O30; O31

Language: English

25 pages, November 13, 2024

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