What Is The Definition Of Industrial Partnership?

An industrial partnership is a partnership where one or more partners give their expertise to the business, rather than investing money. It could also be a partnership between a non-commercial institution, such as a university or college and an industrial organization, such as a pharmaceutical company, for example.

• University and Company

In the latter example, a pharmaceutical may enter an industrial partnership with a university by supplying funds towards research into some type of medication. In return the university will make the results of the research available to the company. Both may put individually conducted research together in order to make greater advances.

Another example of such an industrial partnership would be a car manufacturing company and a technical college. While the company is providing funds, the college invests in the partnership by sharing results of technological research or development. If, for instance, the college was involved in research on how to improve the efficiency of an engine, data shared between the two partners would ultimately result in benefiting both.

In both cases, the companies suply a pre-specified percentage of the research cost. Both partners share their knowledge with regards to the subject of the research. The college or university includes the knowledge provided by the company into its own research, while the company in turn incorporates the data received from their partner into their own work.

• Industrial Partnership Between Individuals

Two people may decide to form an industrial partnership in which one person provides the capital, while the other is providing his skill and time as his investment in the company. Often both partners will draw a salary from the business and profits are shared as previously agreed, with the partner providing the capital often taking a larger share. Either way, both ultimately benefit from the arrangement.