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This is documented on the roslaunch/XML/param page:

textfile="$(find pkg-name)/path/file.txt"

The contents of the file will be read and stored as a string. The file must be locally accessible, though it is strongly recommended that you use the package-relative $(find)/file.txt syntax to specify the location.

So for robot_description, that would be:

<param name="robot_description" textfile="$(find pkg-name)/path/file.urdf"/>