Public procurement in Big Science: politics or technology? The case of CERN[Does CERN procurement result in innovation?]

Public procurement from Big Science Centers (BSCs) yields a variety of spillover effects that can ultimately have growth enhancing consequences for their Member States (MS). We study the determinants of procurement for the biggest research infrastructure ever built: the Large Hadron Collider (LHC) at CERN. A unique database of firms that have registered to become industrial partners of the LHC program allows us to estimate the determinants for potential suppliers of receiving an order from CERN. We compare the relative weight of firms’ technological features and CERN’s procurement rules aimed at securing a juste retour for its MS. Although in accordance to CERN’s procurement rules our results highlight the role of both technological factors and political constraints, we also show the existence of a premium toward Swiss and French firms. We document that the constraints related with the achievement of a juste retour affect—directly or indirectly—the procurement policy of many European BSCs and international bodies whose budget is financed by the public funds of their MS. Therefore, our results have policy implications that go beyond our empirical application.