Abstract:Small and medium enterprises are important parts of economic and social development, and are also the important carrier of innovation. Subject to the financial difficulties, extensive management, talent shortage and other factors, small and medium enterprises have weak ability of anti-risk and innovation development bottleneck. Government procurement has become the effective way to promote the innovation and development of small and medium enterprises. The paper runs through the innovation and development modes of small and medium enterprise by government procurement in Beijing, and analyses the encountered problems, and then puts forward effective countermeasures to promote the innovation and development of small and medium enterprises.