Technology transfer and technological learning through CERN's procurement activity

This report analyses the technological learning and innovation benefits derived from CERN's procurement activity during the period 1997-2001. The base population of our study, the technology-intensive suppliers to CERN, consisted of 629 companies out of 6806 companies during the same period, representing 1197 MCHF in procurement. The main findings from the study can be summarized as follows: the various learning and innovation benefits (e.g., technological learning, organizational capability development, market learning) tend to occur together. Learning and innovation benefits appear to be regulated by the quality of the supplier's relationship with CERN: the greater the amount of social capital built into the relationship, the greater the learning and innovation benefits. Regardless of relationship quality, virtually all suppliers derived significant marketing reference benefits from CERN. Many corollary benefits are associated with procurement activity. As an example, as many as 38% of the respondents developed new products or services as a direct result of the supplier project; 13% started new R&D units; 14% started new business units; 17% opened a new market; 42% increased their international exposure; and 44% indicated significant technological learning. The study also demonstrates the importance of technologically challenging projects for CERN itself, as technologically demanding projects were associated with a high level of knowledge acquisition and motivation among CERN staff. The study concludes by presenting tangible recommendations and suggestions on how CERN could further advance the corollary technological benefits associated with its procurement activity.