Governments are generally the largest purchaser within a country, often spending tens of billions of dollars. Not all this spending is paper clips and copy paper. In fact, it represents a great opportunity to stoke innovation. In this analysis, ITIF argues that government policymakers should think strategically about procurement, taking innovation into account when buying goods and services. Innovation policy is often articulated from a supply-side perspective (R&D and corporate tax credits, worker training programs, public-private partnership grants, etc.), but public procurement contracts are a key mechanism for boosting domestic demand for innovation.