Abstract: OECD published Demand-side Innovation Policies in May, 2011. This book examines dynamics between demand and innovation and provides insights into the rationale and scope for public policies to foster demand for innovation. It shows the potential - but also the limits - of using public procurement, regulations or standards to stimulate public and private demand for innovation, including among SMEs. Drawing on country experience and case studies, this report illustrates good practices for designing, implementing and evaluating demand-side innovation policies. This paper not only introduces the experiences of OECD countries but also gives recommendations for the development of China's innovation policies.