Licensed production

Licensed production is the production under license of technology developed elsewhere. The licensee provides the licensor of a specific product with legal production rights, technical information, process technology, and any other proprietary components that cannot be sourced by the licensor.

This is an especially prominent commercial practice in developing nations, which often approach licensed production as a starting point for indigenous industrial development. While licensed production in developing nations provides stimulus to the production and technical capabilities of local industry, in many cases it remains at least partly dependent on foreign support.