Does CERN procurement result in innovation?

Abstract

Innovation is stated to be one of the most powerful engines for economic growth in firms, markets and nations today. It is therefore not surprising that policy-makers would like to see innovations as a benefit of publicly spent money; making innovations an additional aim of public procurement (public procurement for innovation). The aim of the paper is to analyse the impact of a science organization's procurement practices on innovation. The intention is also to show how different and contradicting goals and expectations regarding public procurement are described and acted upon by the science organization and its suppliers, and to what extent the outcome of public procurement is innovation. Empirically, the study addresses how the European Organization for Nuclear Research, i.e. CERN, works with procurement; and how their procurement in turn affects CERN's suppliers. Based on a large case study in which more than 100 interviews were conducted over a time period of 8 years, the study contributes to the understanding of the limitations CERN’s procurement rules put on interaction and on innovation. The understanding of the implications of restricting interaction, but also the understanding of the reasons why these rules are put into place, and the dilemmas that follow, are all important contributions.