"Industrial Cooperation" refers to an obligation imposed on a foreign contractor under a government procurement project to execute certain industrial or commercial activities such as local investment, local procurement, technology transfer, etc. Such obligation is particularly common in procurement project concerning national defense.

In 2010, the Executive Yuan approved the advanced framework of Industrial Cooperation organization and the operation process, which was jointly established by the Ministry of Economic Affairs and the Ministry of National Defense. Resources of Industrial Cooperation are integrated and utilized to upgrade the industrial level and build indigenous defense industry in accordance with the signed Government Procurement Agreement of the World Trade Organization. Currently through the endeavors of the Ministry of Economic Affairs and the Ministry of National Defense, all the operation process and promotion practices of Industrial Cooperation Program have been continuously refined so that most benefits can be yielded from the limited resources.