Big Science, Learning and Innovation: Evidence from Cern Procurement

We study the way in which public procurement by big research infrastructures enhances suppliers’ per- formance. Using survey data on 669 CERN suppliers, we built a unique data set to analyse, through an ordered logit model and Bayesian networks, the determinants of suppliers’ sales, profits and develop- ment activities. We find that collaborative relations between CERN and its suppliers improve suppliers’ performance and increase positive spill overs along the supply chain. This suggests that public procure- ment for innovation policies should promote cooperative relations and not only market mechanisms.