state-use system | Definition

State-use system refers to a government procurement policy that involves the purchase of goods and services exclusively from domestic suppliers or producers.

Under a state-use system, the government is required to give preference to domestically produced goods and services when making purchases for government agencies and projects. This policy aims to promote domestic economic growth and development by supporting local businesses and industries. State-use systems can be found in various sectors, including construction, transportation, and energy, among others. However, they can also be controversial, as they may lead to higher costs for taxpayers and limit competition and innovation in the market.