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Procurement in Big Science Centres: politics or technology? Evidence from CERN

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  • Andrea, Bastianin
  • Chiara F., Del Bo

Abstract

Procurement from Big Science Centers (BSC) yields a variety of spillover effects that can ultimately have growth enhancing consequences for their partner countries. We study the determinants of procurement for the biggest research infrastructure ever built: the Large Hadron Collider (LHC) at CERN. Using a unique cross-section database of firms that have registered to become industrial partners of the LHC program, we 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 Member States. Our results point to a strong impact of technological factors, while also highlighting the importance of political constraints related with CERN’s procurement rules as well as the presence of a home bias. Since the constraints related with the achievement of a juste retour affect–directly or indirectly–the procurement policy of many European BSCs, our results have policy implications that go beyond the CERN case study.

Suggested Citation

  • Andrea, Bastianin & Chiara F., Del Bo, 2019. "Procurement in Big Science Centres: politics or technology? Evidence from CERN," Working Papers 410, University of Milano-Bicocca, Department of Economics, revised 21 May 2019.
  • Handle: RePEc:mib:wpaper:410
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    More about this item

    Keywords

    big science; procurement; innovation; hi-tech; CERN.;
    All these keywords.

    JEL classification:

    • C21 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Cross-Sectional Models; Spatial Models; Treatment Effect Models
    • C25 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Discrete Regression and Qualitative Choice Models; Discrete Regressors; Proportions; Probabilities
    • H57 - Public Economics - - National Government Expenditures and Related Policies - - - Procurement
    • O32 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Management of Technological Innovation and R&D
    • O38 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Government Policy

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