Big science, learning, and innovation: Evidence from CERN procurement

Abstract

We study the way in which public procurement by big research infrastructures enhances suppliers' performance. Using survey data on 669 CERN's suppliers, we built a unique data set to analyze, through an ordered logit model and Bayesian networks, the determinants of suppliers' sales, profits, and development activities. We find that collaborative relations between CERN and its suppliers improve suppliers' performance and increase positive spillovers along the supply chain. This suggests that public procurement as a mission-oriented innovation policy should promote cooperative relations and not only market mechanisms.