Digital twin and official statistics: A paradigm shift?

Abstract

This paper explores the transformative potential of Digital Twin (DT) technology for official statistics, offering a novel perspective on data collection, analysis, and application for policy-making and societal development. The paper is exploratory and speculative in nature, looking at the potential of this new technology. The burgeoning interest in DTs among official statisticians will be driven by the technology's ability to create virtual representations of physical entities, enabling real-time monitoring, simulation, and analysis. This interest is further amplified by initiatives from the European Commission and the High-Level Group for the Modernization of Official Statistics, highlighting the alignment of DTs with efforts to digitize industries and foster innovation across European member states. Like any new technology, the application of DTs in official statistics presents both opportunities and challenges. Opportunities include the potential for real-time data and forecasting, improved decision-making through scenario testing, enhanced precision in statistical models, and innovation in data collection methods. However, the adoption of DTs in official statistics is not without challenges, including technical complexity, data governance, privacy concerns, and the integration of diverse data sources. The paper discusses also the potential of DTs to advance the United Nations Sustainable Development Goals (SDGs) by providing a detailed, virtual replication of physical entities and systems. In theory DTs can offer a powerful analytical tool for optimizing interventions across the SDGs, enabling a more comprehensive understanding of the intricate relationships between different goals and facilitating targeted actions toward a sustainable future.