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Turkey has created some opportunities for the organisations in the defense industry to generate a suitable business and to ensure its sustainability. The domestic coverage ratio of defense system need in 2010 is aimed as 50%. To achieve this target depends on the defense industry competitiveness. In this study, the development plans, strategies and foreign trade are examined. Its contribution which has an important place in the research and development investment, is not at the level expected in Turkey’s economy. Turkey occupies 47 th position in World Competitiveness Scoreboard, and 61 st position in Global Competitiveness Index in 2009. The index factors are investigated to understand the competitiveness according to the Porter’s diamond model, applied in Turkey for the first time. As a result, the competitiveness analysis of Turkish defense industry is carried out and its global place and competitive advantage are exposed. Therefore, a framework is made to introduce a guide for decision-making by using a widely-accepted model, and to contribute to the plans and strategies.