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The role of twin skills in attracting FDI: evidence from European regions

Author

Listed:
  • Giulia Martinelli

    (Gran Sasso Science Institute)

  • Andrea Ascani

    (Gran Sasso Science Institute)

  • Stefano Basilico

    (Gran Sasso Science Institute)

  • Alberto Marzucchi

    (Gran Sasso Science Institute)

Abstract

By integrating the literature on the twin transition with an international business perspective, this paper assesses whether the regional endowment of green, digital and twin occupations in the EU can act as a pull factor for inward foreign direct investment (FDI). We explore green, digital and twin skills per se as well as the role of their respective enabling (complementary) skills. We find a positive link of enabling skills on inward FDI, while focused digital and twin skills are generally not related to a higher level of FDI attractiveness. A high regional endowment of green skills may even have detrimental effects under specific circumstances. Our evidence paves the way for policies reinforcing locations with occupational complementarities between green, digital and twin competences in order to foster regional participation in global dynamics and favouring the twin transition.

Suggested Citation

  • Giulia Martinelli & Andrea Ascani & Stefano Basilico & Alberto Marzucchi, 2026. "The role of twin skills in attracting FDI: evidence from European regions," Discussion Paper series in Regional Science & Economic Geography 2025-17, Gran Sasso Science Institute, Social Sciences, revised Feb 2026.
    • Handle: RePEc:ahy:wpaper:wp79
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    JEL classification:

    • F23 - International Economics - - International Factor Movements and International Business - - - Multinational Firms; International Business
    • O33 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Technological Change: Choices and Consequences; Diffusion Processes
    • O32 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Management of Technological Innovation and R&D
    • R11 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Regional Economic Activity: Growth, Development, Environmental Issues, and Changes

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