True or False: Know-how licensing is commonly used in the semiconductor and pharmaceutical industries.

Know-how licensing is indeed commonly used in the semiconductor and pharmaceutical industries. These industries rely heavily on proprietary technology and specialized knowledge that can be licensed from one company to another. In the semiconductor industry, firms often license technology for manufacturing processes or design capabilities, which allows licensees to produce chips without having to develop the technology from scratch.

In the pharmaceutical sector, companies frequently engage in know-how licensing to gain access to specific drug formulations, manufacturing processes, or research methodologies. This allows companies to leverage existing innovations, speed up their development timelines, and minimize research and development costs. Since both industries are characterized by high levels of research and development expenditure and a need for specialized knowledge, know-how licensing becomes a strategic tool for facilitating innovation and market entry.

This practical approach enables firms to expand their market presence and enhance their product offerings without losing control over their proprietary technologies. As a result, stating that know-how licensing is common in these industries is accurate.