Procurement in Big Science Centres: Politics or Technology? Evidence from CERN

37 Pages Posted: 31 May 2019

See all articles by Andrea Bastianin

Andrea Bastianin

Università degli Studi di Milano-Bicocca - Department of Economics, Management and Statistics (DEMS); Università degli Studi di Milano-Bicocca - Center for European Studies (CefES)

Chiara F. Del Bo

Università degli Studi di Milano

Multiple version iconThere are 2 versions of this paper

Date Written: May 21, 2019

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.

Keywords: big science; procurement; innovation; hi-tech; CERN

JEL Classification: C21; C25; H57; O32; O38

Suggested Citation

Bastianin, Andrea and Del Bo, Chiara F., Procurement in Big Science Centres: Politics or Technology? Evidence from CERN (May 21, 2019). University of Milan Bicocca Department of Economics, Management and Statistics Working Paper No. 410, May 2019. Available at SSRN: https://ssrn.com/abstract=3396860 or http://dx.doi.org/10.2139/ssrn.3396860

Andrea Bastianin (Contact Author)

Università degli Studi di Milano-Bicocca - Department of Economics, Management and Statistics (DEMS) ( email )

Piazza dell'Ateneo Nuovo, 1
Milan, 20126
Italy

Università degli Studi di Milano-Bicocca - Center for European Studies (CefES)

U6 Building
Viale Piero e Alberto Pirelli, 22
Milano, 20126
Italy

Chiara F. Del Bo

Università degli Studi di Milano

via Festa del Perdono, 7
Milano
Italy

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