A modelling toolkit

 

The MONROE project aims at developing a modelling toolkit and an interactive online tool that would allow a broad range of stakeholders such as European and national governments, academia, regional and local bodies to quantitatively evaluate the impacts of their specific research and innovation (R&I) policies and programmes.

The toolkit will assess medium and long-term impacts of R&I policies and programmes on economic growth, job creation, competitiveness, social inequality and sustainability at various geographical levels ranging from world-wide to European, country and regional levels and for various economic sectors. Using innovative modelling methodologies and online visualisation techniques the developed modelling toolkit and an interactive online tool will encourage collaboration between different societal actors in the process of co-creation for sustainable R&I driven economic growth. Such evidence will be based on the combination of novel macroeconomic theory and general econometric analysis with the parametrisation of the developed toolkit on the basis of European, country, sector and region specific historical data.

 

The modelling toolkit will be based on a range of existing state-of-the-art models including a dynamic stochastic general equilibrium (DSGE) models,  macro-sectoral Computable General Equilibrium (CGE) models (GEM-E3-RD1 and PACE2), a macro-econometric model (E3ME3) and a regional-economic New Economic Geography (NEG) model (RHOMOLO4). The project will develop the methodologies and modelling approaches for realistic assessment of various aspects of R&I within each of these models. The project will also promote cross-fertilisation between modelling approaches to encourage best practice in the modelling of endogenous productivity.

The interactive online tool will be based on the outcomes of empirical analysis and policy runs with the MONROE modelling toolkit and uses a meta-analysis modelling approach. The meta-model analysis used in MONROE will be innovative as most meta-models are based on results from the empirical literature, in the MONROE the meta-model analysis integrates results from various policy runs with the set of MONROE models that have been carried out within the MONROE project itself. The constructed meta-model will serve as the basis for an innovative interactive online application that can be used by various groups of stakeholders and social actors.