




































AGORA International Journal of Economical Sciences, http://univagora.ro/jour/index.php/aijes 

ISSN 2067-3310, E-ISSN 2067-7669 

Vol. 19, No. 1 (2025), pp. 1-14 

 

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AN ANALYTİCAL ASSESSMENT OF THE TURKİSH DEFENSE 

INDUSTRY AND ITS ECONOMİC IMPLİCATİONS 

 

M. ADSIZ 

 

Melek Adsız 

Doctoral School of Military Science & Officer Training of Ludovika University of Public 

Service in Hungary 

https://orcid.org/0000-0001-7612-3400, E-mail: adsiz.melek@uni-nke.hu     

 

Abstract: The pursuit of strategic autonomy has been a key driver in shaping Türkiye's 

defense policy, with a focus on reducing dependence on others through the advancement of its 

domestic military capabilities. While benefiting from NATO membership and access to global 

technologies, Türkiye has emphasized the creation of a sovereign defense ecosystem. This 

article makes an overall evaluation of Türkiye's defense industry through an examination of its 

historical trajectory, strategic role, structural transformation, sectoral performance 

indicators, and economic role in a wider senseThe study aims to interpret the shifting pattern 

of the sector by analyzing export-import performance, labor trends, and its effects on 

technological and industrial development. A qualitative-descriptive approach was employed, 

founded on policy document analysis, scholarly literature, and statistics data analysis.The 

results emphasize Türkiye's improvements in integrating indigenous production, enhancing 

exportation capability, and aiding economic sustainability through its defense programs. 

  Keywords: Defense autonomy, national security industry, economic contribution, 

arms trade, industrial development 

 

1. INTRODUCTION 

With the start of the Turkish defence industry in the 1960s, a twisted and circuitous, yet 

successful, path has been taken. Beginning with a mechanisation programme, amateur attempts 

at defence production slowly branched out to the fields of ammunition, land systems, ship and 

sub-unification, avionics, missiles and aircraft. Since the late 1990s, these efforts have been 

augmented further through the transfer of higher technology know-how, as the underlying 

weaknesses have been smoothed to some extent. Since the late 1990s, defence expenditure and 

investment levels have increased in a more compliant manner in relation to GDP levels. 

Despite defence expenditure increasing tremendously, most of the investment and 

procurement still has to be made out of defence imports; aimed at meeting the postponed or 

unsatisfied needs due to the earlier weapon choice decisions of the military. In an attempt to 

facilitate an integrated defence procurement system that would create shorter substantive and 

procedural lead times, there must be an independent, non-partisan and high-level procurement 

authority. But governmental expansion projects have to be imposed over the procurement 

authority. There should be no other inter-agency co-ordination cost incurred as a result of an 

extended capability in policy and programme definition-decision making fields. The 

procurement authority that can become effective and qualify can be done only by utilizing 

https://orcid.org/0000-0001-7612-3400
mailto:adsiz.melek@uni-nke.hu


AN ANALYTİCAL ASSESSMENT OF THE TURKİSH DEFENSE INDUSTRY AND 

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capable bureaucrats from the defence inner circles and not those promoted from the defence 

industry, trade and procurement circles. 

In the context of currently existing, partially procedural procurement 

procedures,Türkiye will not be any more advantageous by just implementing such a 

procurement authority when comparable countries are being taken into consideration in her 

own perspective. While attempting to improve a procurement environment, respective 

alterations, reforms and fundamental modifications should/can be made on the aforementioned 

fronts. 

In this context, although Türkiye’s defense industry has made significant strides 

towards reducing dependence on foreign technologies and capabilities, the need for systemic 

reforms and a more integrated strategic approach remains. The restructuring of procurement 

processes, optimization of decision-making mechanisms, and enhancement of technological 

production capacity are essential for ensuring sustainable progress. The developments within 

the defense industry hold strategic importance not only from a security perspective but also in 

terms of economic growth, technological advancement, and the broader trade balance. 

This study aims to provide a comprehensive description of the Turkish defense industry 

by its structural evolution, institutional framework, performance indicators, and economic 

contributions. The study refers to the contribution of the defense industry to industrialization, 

jobs, technological growth, and its effect on trade balances, both pre-2000 and post-2000. 

Methodologically, qualitative-descriptive analysis is continued through the 

implementation of national and international statistical data, policy reports, and industry 

reports. Comparative analysis is applied to assess historical change in the industry, while 

economic indicators are quantitatively analyzed to observe the overall influence on industrial 

manufacturing, research, and technological innovation. Through this method, complete insight 

into the strategic and economic dimensions of Türkiye's defense industry is achieved. 

 

2. Structural Overview and Historical Evolution of Türkiye’s Defense Sector 

The Turkish defence sector has made significant progress over the last 10–15 years, 

with an astounding yearly growth rate of 10 %. The “defence industry in Türkiye” defines the 

governmental organizational structure, laws, and the manufacturing sectors which produce 

defence systems and subsystems for the Turkish Armed Forces (TAF), law enforcing units, and 

relevant governmental agencies 

Today, the Turkish defence industry extensively covers the design, development, 

production, and integration of air-, ground-, and sea-based defence systems and subsystems by 

an extensive range of national and international industries, companies, and manufacturers. The 

defence industrialisation initiatives and activities conducted by the defence and military 

authorities of Türkiye between the 1940s–1960s, establishment of the Turkish Armed Forces 

Foundation (TAFF), investments in weapons and munitions production facilities, the 

establishment of the Defence Industry Undersecretariat (DIU), defence industry development 

projects, and sanctions on defence export and co-production collaborations played crucial roles 

in the rapid growth of the Turkish defence sector. (Saygılı, 2022: 40) 

Following the formation of the Defence Industry Executive Committee in 1989, major 

regulations were implemented to speed defense sector activities, and selected defense 



Melek ADSIZ 

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enterprises were assisted with R&D activities. In this context, the regulations governing joint 

ventures and co-production agreements entered into with foreign defense manufacturers and 

suppliers were rewritten, and all prohibitions on technology and know-how transfers were 

removed. 

Meanwhile, the list of companies and manufacturers excluded from tenders, contracts 

and collaborations in the defence field in Türkiye was revised, with the exclusion of many 

national defence manufacturers and suppliers either acknowledged as a result of misconducts, 

or strong commercial competitors to the Türk Savunma Sanayi A.Ş (TARAS). Additionally, in 

1995, the defence industry industrial development and R&D project manager and products 

supplier status was granted to TARAS by the Council of Ministers of Türkiye (Wiśniewski, 

2015).  

Despite a rapid growth in the capabilities of the Turkish defence industry, it still has 

several weaknesses which may pose obstacles to its further development. Firstly, production 

and procurement plans only cover a few years, are not publicised and lack transparency, making 

it difficult for the defence industry to adopt appropriate long-term strategies. Secondly, 

domestic companies are at a disadvantage in many cases, especially when trying to win foreign 

contracts from the licensed production of Turkish designs. The Turkish manufacturing costs 

are substantially higher than the costs of US centres due to wider wage, material and defence 

R&D cost differentials. (Uzun, 2007: 5) Despite many publicised successes, most Turkish 

designs either follow joint-venture solutions offered by US companies or are derived from other 

systems produced in co-production with the same companies. So far, there is no trace of 

originality or inventiveness in Turkish designs.  

 

3. Conceptual Framework: Defense and Defense Industry 

The beginning of 2022 marks a period of significant geopolitical turmoil. A conflict in 

Europe poses numerous basic questions regarding the continent's future, security, and the 

function of NATO, its current source of stability. Meanwhile, the Turkish Defense Industry, a 

significant part of the Turkish economy and a key factor in its long-term strategic growth, 

reaches a tipping point. 

The current global and regional upheaval presents both chances and problems for a 

country that has undoubtedly become NATO's most talked-about and toughest fighter, and to 

which NATO allies must pay more attention. While full quantitative assessments of a country's 

military industry must incorporate a variety of elements, the current work takes a more 

simplified, static approach. Gaps in the hard-core topic of the Turkish defense industry will 

provide the earliest insight into how the Turkish defense industry may be seen by others. 

Over-reliance on imported platforms has been a constant cautionary note against 

Türkiye since the late 1950s. As a result, technological limitations from the perspective of 

imports, bilateral in-platform co-productions, technology transfers, and multinational 

endeavors have always been a consideration when evaluating the Turkish defense industry. 

From this perspective, the current state of the Turkish Defense Industry can be readily assessed. 

A catalogue of the current Turkish defense industry landscape is compiled here for the first 

time, which includes current platforms from all known suppliers.  

All well-known and publicly-seen platforms and systems such as vehicles, missiles, 

radars, helicopters and drones have been included. Outdated planning boards above the simple 



AN ANALYTİCAL ASSESSMENT OF THE TURKİSH DEFENSE INDUSTRY AND 

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level of detail in evaluating the Turkish defense industry have seldom been seen in the academic 

discourse on the Turkish defense industry. Gaps in the hard-core matter of the Turkish defense 

industry will provide the initial insight into how the Turkish defense industry might be 

perceived by others. (Tübitak, 2003: 9). A clearer assessment of the state of the affairs, and a 

better understanding of the concepts that are shaping it, may change the perception of the 

Turkish Defense Industry and its associated factors in the eyes of the interested parties.  

 

4. Strategic Importance and Fundamental Characteristics of the Defense Sector 

The defense sector is a strategic sector in Turkey's economy. It is regarded, alongside 

the military, as a key tool for preserving and strengthening sovereignty. The defense sector is 

vital to a country not only militarily, but also politically and economically. Today, numerous 

ISC (Intelligent Transportation Systems) industries, including automotive, shipbuilding, and 

aviation, are recognized as sensitive and strategic. 

In addition to civil aviation opportunities, there are dual-use technologies that can be 

used for defense purposes.Türkiye is sovereign in many of the activities performed in the field 

of defense industry; however, major firms design and manufacture optimal solutions. 

Moreover, nonconflict in long-term agreements may require strategic co-production of 

segments in an international defense supply chain (Wiśniewski, 2015). 

 A country must independently and consistently make sure that it has the strategic and 

essential component design and production capabilities of the products it produces and uses 

within its borders. Domestic relevance and background are generally required by the major 

firms, as they must effectively keep their profits in their countries in an enduring context. 

(Ziylan, 2004: 91) 

 Therefore, a country which wants to be in contention must ensure that it possesses a 

sufficient amount of stocks within its borders. On the other hand, even if the indigenous 

production capability becomes unnecessary, the price impacts of war or crisis on imported end 

products would result from an indigenous production strategy, which is a capability for a 

country’s defense industry. A country which can produce a warplane may also be able to 

produce a bus for logistics. The offset financing with the indigenous production joined with a 

co-production agreement may cost much less than direct subsidies. 

 The cohesion and uniqueness of the government’s and defense companies’ strategies 

must be regarded for the success of the ISDs (Integrated Supply Chains). Anomic and instant 

trade may not satisfy a country’s defense needs as well as long-term investment. On the other 

hand, defense procurement contracts, which are dominated by a firm which is mainly a service 

firm, may necessitate the long-term investment of a country.  

The source of procurement contracts must be aware regarding what information, which 

brings dependency, are to be given. Furthermore, the technological offsets of the military 

contracts generally have a higher premium and requirement than dual-use technologies. The 

incorporation of defense firms in long-term global supply chains, later on, changing to defense 

industries, is also possible. The assurance of a local supply chain in a long-term context is 

central to defense needs and a defense industry. 

 

 



Melek ADSIZ 

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5. Sectoral Statistics and Performance Indicators in Türkiye’s Defense Industry 

Manufacturers of defence products are companies, state-owned or private, whose main 

area of activity is production or services for military purposes. Companies which were 

privatized in the 1990s, and are now private joint-stock ones and which used to be joint state-

private stock companies are also included in the defence industry. (Donaldson, 2013, p. 21). 

Effective in the 1996 fiscal year, defence procurement budget is no longer included in 

the general budget. In addition to this, except military vehicle projects, an alarming amount of 

the past problems with exceeding the defence procurement budget have been solved. In 

addition to these regulations, some international agreements were signed with countries or 

companies in order to facilitate both exports and joint work on the assignment and adaptation 

projects. These agreements which are classified as Close Cooperation in Defence Industry 

(CCDI) and Under Joint Cooperation in Defence Production (UJC-DP) are expected to increase 

the share of the defence industry in export revenues and local production (Wiśniewski, 2015).  

In this context, beginning with the 1990s, a serious transformation process has been 

started in the defence industries of both developed and developing countries. (Sidhu,2024) This 

transformation has three main aspects: reorganization of state-owned defence industries, 

privatization of state-owned companies or establishing private joint-stock companies as 

substitutes, and relaxation on the state control of private companies which are producing former 

defence weapons. The defence industry must be viewed as an important sector of the national 

economy. 

 Companies in this sector generate significant profits, invest heavily in advanced 

technologies and employ large numbers of skilled workers. These contributions benefit 

economic growth, industrial and technological development, as well as social welfare. For 

states that do not face an imminent military threat, the economic role of the defence industry is 

as important, or perhaps even more important than the military one. The Turkish Defence and 

Aerospace Industry Manufacturers Association compiles data on the performance of the sector 

annually.  

The turnover breakdown of Turkish defence and aerospace companies by year shows 

that companies operating in the defence electronics subsector had first place in most of the 

years examined in terms of turnover generation. The turnover distribution by subject shows 

that most of the turnover is coming from the procurement of goods and services for the military, 

while a small, yet considerable part comes from the civilian domains. The highest turnover per 

employee has been recorded in the defence aerospace subsector.  

 

6. Trade Dynamics: Export-Import Revenues, Orders, and Employment 

Türkiye’s defense industry has witnessed a remarkable rise over the past decade, in 

which the value of defense projects and manufacturing has surpassed $1 billion. In 2006-08, 

the defense industry grew by 35% a year on average, while its exports amounted to $128.1 

million in 2006, $166.6 million in 2007, and $226 million in 2008. (Wiśniewski, 2015) 

 In spite of a booming industrialization effort accompanied by an impressive export 

performance,Türkiye’s defense industry is not yet strong enough to meet fully the demand of 

the armed forces and is still subject to restrictions imposed by foreign partners. The country 

imported about $4 billion worth of military hardware in 2007 alone, much of it from the U.S. 

and the European nations.  



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Türkiye has long been in search of more self-sufficiency in the military sector and 

alternative markets for defense purposes. The recent takeover of foreign interests in the Turkish 

defense industry is therefore not a healthy sign forTürkiye’s strategy of establishing a 

sustainable military-industrial complex. The Turkish defense industry is currently focusing on 

export markets for avionics parts of F-16 fighter planes, sundry parts and systems for C130 

Hercules transport aircraft, and Shikra unmanned aerial vehicles. 

 It remains vide to conduct a detailed assessment of the structural, functional, and 

operational characteristics ofTürkiye’s relatively young defense industry, while considering 

restrictions dampening the sector’s growth, prospects of emerging non-Western markets, public 

support and contribution to technological development and modernization, shadow military 

firms, revisions in the national military policy, etc.Türkiye's newly found economic power and 

growing defense expenditure are further conducive to an industrial growth spurt. The Turkish 

economy can support the defense industry with scientific and technical manpower, while the 

military has a vital requirement for systems incorporate possessing indigenous technology 

(Wiśniewski, 2015). 

 

7. Comparative Evaluation: Pre- and Post-2000 Phases of the Turkish Defense Industry 

The Turkish defense industry is analyzed through two different perspectives: On one 

hand, it is evaluated in the international arena through comparative macroeconomic 

indicators; on the other hand, its domestic and industrial development is solved on a more 

detailed and microscopic level. Numerous indicators and statistics have been included to 

interpret the comparative pre-and post-2000 phases of the Turkish defense industry in both 

international and domestic perspectives. 

 Since World War II, the rapid growth of the defense industry has been addressed with 

detailed analyses on broad macroeconomic parameters and comparative evaluations of the 

pre- and post-2000 industrial and comprehensive defense systems. The rising capability and 

efficiency of the Turkish defense industry that is shaping the contemporary interpretation and 

notion of a nation-state, particularly after the events of 11 September has been discussed in 

detail in various aspects, perspectives, and domains (Wiśniewski, 2015).  

With this extensive academic interest regarding the defense industry, a relatively 

unstudied and unexplained area has been tried to be filled. The hitherto-created indicators and 

framework of evaluation have been adopted on the Turkish defense industry with the aim of 

delivering an analytical evaluation of Türkiye’s performance in the broad defense industry 

throughout the years up to now. The Turkish defense industry has witnessed tremendous and 

rapid developments in various aspects, dynamics, dimensions, and domains since its early 

establishment even though its comprehensive development level is still below the expected 

level compared to its ambitions and objectives.  

Since 2000, a more intensive, affluently funded, and better articulated perspective of 

defense and defense industry development has been introduced and prevalently applied in 

order to fill the existent gaps in the Turkish defense industry’s capability and efficiency 

structure. These efforts led to tremendous outcomes and yielded rising trends and 

advancements in all of the aspects, performances, capabilities, and efficiency levels which 

are the subject of this study.  



Melek ADSIZ 

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Graphic 1- Türkiye’s Defense Expenditure and GDP Share (2013-2023) 

 

 
Source:  SIPRI 

 

In 2001, Türkiye’s defense spending was approximately $7.2 billion, constituting 

3.6% of its GDP, largely due to a significant dependence on imported military equipment. By 

2002, this proportion increased to 3.8%. However, in the subsequent years, the government 

reported a shift as domestic production capabilities expanded. By 2023, defense expenditures 

had risen to $17 billion, yet their share of GDP decreased to 1.5%, attributed to the widespread 

adoption of domestically developed military technologies 

As a result, the Turkish defense industry has shifted from a lower to higher competitive 

and capability levels in the aforementioned aspect.These extensive advancements in the 

Turkish defense industry both enabled and financed a more comprehensive and extensive 

approach to defense and security.  

 

Graphic 2 - Total Defense Industry Turnover Figures between 2000-2022 (Million $) 

 
Source : (SASAD,2022) 



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Based on the data from Defense and Aerospace Industry Manufacturers Association 

Performance Report 2022presented in SASAD’s 2022 report, the Turkish defence industry 

experienced a significant increase in turnover between 2000 and 2022. Specifically, in 2022, 

the sector’s total sales revenue rose by 20.05% compared to the previous year. ￼ In addition 

to the growth in domestic sales revenues, there was also a 36.32% increase in foreign sales 

revenues, indicating substantial progress of the Turkish defence industry in 

international markets. (Yılmaztürk,2023: 143-150) 

In order to meet the newly awakened and emerging demands of the complex 

multilateral operating environment, the Turkish defense and security policies have redefined 

the context and the content of defense and security. The classical notion of a nation-state has 

been redefined and shaped through the original development of national defense capabilities 

and capacities. The Turkish defense and security policies started to focus on the development 

and procurement of sophisticated defense systems and weaponry in order to design and be 

capable of conducting a more extensive and comprehensive engagement strategy. 

However, In 2023, Türkiye was 22nd globally in defense spending, allocating $15.8 

billion for the military budget. It increased by 37% from the previous year and a 59% increase 

over the past ten years, according to the Stockholm International Peace Research Institute 

(SIPRI). Even expanding in absolute terms, military spending represented 1.5% of the GDP 

of Türkiye and 0.6% of global military spending. (Kenez, 2024) 

 

8. Economic Implications of the Turkish Defense Sector 

Economic efficient spending might contribute to good influence on advanced defense 

technology, security, level of exports, new employment opportunities, and army being a force 

to deter. Non-productive defense spending might, however, result in adverse influence on 

imports, foreign dependency, higher taxation and borrowing, loss of skilled personnel, and 

cost of opportunities (Deger, 1986). 

Following an unfortunate series of sovereign debt crises throughout the 2000’s – the 

outbursts of which were duly accompanied by widespread societal unrest – the Turkish 

economy has since climbed its way back to relative respectability through a combination of 

ambitious reform and protectionist policies. The US crisis is not only a factor of defence 

expenditure comfort but also an important aspect of the competition amongst firms in the 

Turkish Defence Sector (Wiśniewski, 2015).  

With defence expenditure hovering around a satisfactory 2.2% of GDP there is little 

doubt that Türkiye’s position in the international arms market is set to rise and with this rise 

will come economic growth and important sectoral reforms across the Turkish economy. It 

has indeed been indicated elsewhere thatTürkiye’s growing involvement in the international 

arms market will warrant a pocket of exports. Coupled with strong performing strategic firms 

this is sure to accelerate economic growth in tandem with deft industrial policy reform. 

Additionally, it remains to be seen how the BRICs correspond toTürkiye’s current 

development strategy. Should, on the one hand, the Turkish Defence Sector be able to wrestle 

in one of these nations then its defence aspirations will be aligned with the rest of its 

aspirations. Alternatively, if these powers oppose greater Turkish involvement in the arms 

market then it may find itself entrapped in a new defence dependency, albeit a different one. 



Melek ADSIZ 

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Thus the future for the Turkish economy is one awash with opportunity and peril, 

necessitating a deft comprehension of the current world in which it operates. 

 

  - 8.1. Contribution to Industrialization 

Turkish defence policy explicitly highlights the requirement for extensive industrial 

cooperation to accompany foreign acquisition of weapon systems. It is also noted that, at least 

officially, “making as much of a system, where design installations and integration work is 

concerned, inTürkiye, and producing the components to a greatest extent through local defence 

industry, followed by assembling the system with local capabilities” are requirements for 

weapons technology acquisitions inTürkiye (Wiśniewski, 2015).  

However, the Turkish defence policy, until recently, could not provide a viable strategy 

to advance the indigenous defence industry. The reasons for the insufficiently developed 

indigenous defence industry inTürkiye have been highlighted in the earlier sections. At present, 

alongside the threats, new opportunities are appearing with respect to the main forces affecting 

the advancement of the Turkish defence industry. (Demir, 2020) 

Table 1. Selected Turkish defence exports to European countries, 2019–present 

 
Source: Military Balance+, milbalplus.iss.org 

*First of several contracts. APC = Armoured Personnel Carrier; AUV = Armoured 

Utility Vehicle; CISR = Combat, Intelligence, Surveillance and Reconnaissance; SP = Self-

Propelled; PPV = Protected Patrol Vehicle; UAV = Uninhabited Aerial Vehicle  

Table 1 highlights Türkiye's selected defence exports to a number of countries in Europe 

since 2019, marking the growing country presence within the regional defence market. The 

data demonstrate a wide diversification of the type of defence equipment exported, ranging 

from unmanned aerial vehicles (UAVs) such as the Bayraktar TB2 to armoured vehicles (e.g., 

Ejder Yalçın, Cobra II), artillery systems (e.g., the Boran howitzer), and naval ships such as 

corvettes and replenishment ships. 



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Of these, the Bayraktar TB2 UAV has been a flagship export, acquired by various 

European nations like Poland, Romania, Albania, and Kosovo. This indicates increasing 

worldwide interest in Turkish-produced drone technology. In addition, the inclusion of 

advanced land and naval systems in export orders shows a shift towards a broader and more 

advanced range of defence products. 

These steps reinforce Türkiye's growing role as a competitive European defence 

industry supplier, supported by its focus on building domestic output capabilities and 

technology development. Furthermore, the rising number of European beneficiaries also 

further signal upgraded defence collaboration between Türkiye and some of the NATO and EU 

member countries. (Waldwyn, 2025) 

In recent years, a significantly more favourable domestic environment for the defence 

industry has gradually emerged. There has been a significant expansion in the size of the armed 

forces and the number of frames within its responsibility. Turkish firms have qualified the 

industry to undertake larger system responsibilities. 

 With respect to exports, within a relatively short period of time, the Turkish defence 

industry succeeded in substantially increasing arms exports from a couple of hundred million 

dollars annually to a level where the exports exceed one billion dollars. The development of 

the Turkish defence industry and the prospects in this regard are at least very rare in the 

contemporary arms industry context.  

At least for the time being, or until 2030, the Turkish defence industry possesses a 

subjective opportunity to expand into defence production, which is relatively easily sellable, 

through a development strategy aiming at the export of the smaller systems and subsystems, 

provided that the internal constraints and eventual threats do not block this 

opportunity.Türkiye’s possession of these opportunities, in terms of their timing and 

specification, is rare in the contemporary international arms industry context. 

 

  - 8.2. Strengths and Limitations 

Türkiye’s defence policy strongly relies on the military-industrial sector. This defence 

policy forges far-reaching linkages between foreign policy and the defence industry. Defensive 

policy appears on the one hand as ensuring external security and on other hand as the 

development of defence sector.Türkiye’s geopolitical position has affected its perception of 

external threats. The establishment of a well-developed military industrial enterprise is being 

perceived as a very important component of strategic independence. 

 In evaluating threats to security, special attention is put on internal threats to stability. 

A prediction is made that in the current decade the prevention of internal threats to security will 

be paramount in national defence policy. The defence industry has long been at the centre of- 

Türkiye’s security. The achievement of full autonomy in the procurement of large-scale 

armaments and the establishment of a well-developed military-industrial enterprise appear to 

be the most important components of strategic independence. However, the arms embargo 

imposed onTürkiye has exposed limitations in producing advanced weapons systems 

independently. Domestic production options were virtually exhausted, andTürkiye was left 

with only one alternative: foreign suppliers.  



Melek ADSIZ 

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Anti-Americanism in Turkish political circles was cyclical, and the defence industry 

faced a formidable task to mitigate damage caused by hostile perceptions. Problematization of 

dependence on external sources for security ledTürkiye to attempt to maximize the national 

capability of self-reliance. A period of extensive military cooperation began in 1950. The main 

purpose of NATO membership and military co-operation was to deter aggression. The 

requirement for extensive industrial cooperation to accompany foreign acquisition of weapon 

systems is an important feature of official Turkish policy. 

 Turkish defense industry is looking to establish regional arms industry co-operation 

within the region, as a part of the current export drive strategy. The future development of the 

Turkish defense industry perhaps has two major threats, which are associated with its two main 

drivers of growth - export demand and domestic demand. The outlook for the Turkish economy 

over the next few years seems to be uncertain. A critical assessment of the internal drivers 

proves that the Turkish economic trends could significantly affect the defence sector in the next 

five years. The defence industry has to deal with the economic status which is unfavorable 

regarding local demand. 

 

  - 8.3. Impact on Research, Development, and Technological Advancement 

Military Science and Technology Research, Development and Technological 

Advancement. The defence sector has also accomplished successful designs in the field of 

harnessing defence industry tools with an open system approach, achieving substantial 

technological know-how and capability transfer in partnership with defence industry 

companies and institutions. Academic institutions working on defence matters have made 

breakthroughs in projects on modelling and simulating advanced avionics, radar, simulation of 

missiles, helicopter flight dynamics, civilian aviation aspects and fire control systems. In all of 

these, the defence industries and their institutional partners with extensive experience in 

relevant fields had substantial support to accelerate indigenous capabilities before realistic 

engagements with national security concerns. (Yenturk, 2014, p. 4) 

Design and development work is carried out with professional competence for defence 

system representation and simulation. Defence industries focused centre design contractors for 

modelling and simulation are supporting the adaptation of these tools according to the 

requirements of the recent projects. (Tübitak Sage) Besides the defence industries, some 

government agencies also engage in designing and developing diverse training and mission 

rehearsal simulation products in hardware and software. Aboriginal academic organizations 

have been able to deliver projects. Design and development of an integrated flight simulator 

for a modern trainer aircraft have been achieved. 

Air combat simulation capabilities' aircraft model and mission locations have been 

enhanced. There has been some advancement in the software and content areas of 3D scene 

generation and management. The simulator is now integrated fully with the aircraft model 

created at one of the original software companies leading to a homogeneous scene management 

and model compatibility. Both companies have similar successful histories in training the 

customers with reliable information and with much experience of continuously running 

develop-and-fix scenario for training.  

 



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The development of an open systems architecture avitors training environment is 

achieved. It is foreseen that this environment shall become modelling and simulation 

capabilities’ centre with reliable and controllable engine for dynamic mission rehearsals and 

robust system training for civil aviation ground handling systems. To sustain effectiveness in 

the field of operation, advanced simulation and modelling tools are being evaluated. The 

system will provide high-fidelity representations of the operating environment for both the 

physical and text simulation domains. 

 

  - 8.4. Effects on Economic Stability 

The Turkish defence industry that has begun to be shaped with the Turkish importation 

of Armoured Amphibious Assault Vehicles from the US in 1975, has gone through a 

tremendous development process from the assemblage based period on foreign sub-systems at 

the beginning, to the manufacture and generation of an independent defence technology true to 

the national assets. Since the late 1980’s, the Turkish defence industry has been on its way to 

defence self-sufficiency, with the full understanding of the economic and strategic needs of the 

new millennium.  

Defence technology has begun to be regarded essential for achieving the technological 

level required for the independence of the nation’s technological infrastructures, as well as for 

improving the economic efficiency of the concentration of resources on the national priorities. 

In this regard, the defence technology transfer policy coupled with the establishment of a 

defence technology oriented infrastructure was paved the way for the defence sector to flourish 

through both fostering defence expenditure and lengthy offset contracts on production and 

technology transfer of a wide variety of defence sub-systems.  

The establishment of a technology oriented defence industry has been considered 

crucial in the sense that it would enable indigenous high-technology manufacture, as well as 

the much needed technology generation capability (Wiśniewski, 2015).Türkiye’s defence 

industry has been one of the rare sectors to have continuously expanded in production and 

capability since the late 1990s. Built on shaky ground through decades of assembly contracts 

and technology transfer agreements, during the late 1970s and early 1980s, the self sufficiency 

rate has improved with exports acquisitions having risen to USD 1 billion in this period. 

(Kopits, 1987) 

However, as the geopolitics surroundingTürkiye rapidly change, and economic 

pressures increase, the country’s defence procurement landscape is forced to be reshaped. The 

requirement for extensive industrial cooperation to accompany foreign acquisition of weapon 

systems is an important feature of official Turkish policy.  

The Turkish defence industries are still state-owned (although in accordance with the 

majority of other sectors, some companies such as TAI or Aselsan have been listed among 

publicly-traded Turkish companies). Defence equipment manufacturing is the most 

technology-intensive type of production inTürkiye after automotive, with the highly qualified 

workforce, which can engage in the international supply chain of most types of aerospace and 

military electronics projects. There are three processes by which defence industries are created: 

(1) indigenous design and manufacture of simple systems only, (2) importation of capital 



Melek ADSIZ 

13 
 

systems and equipment for licensed manufacture of same, and (3) transfer of advisory licences 

for production techniques, upgrades, modular and refurbishment services.  

Nevertheless, defence industrialisation could be counted as successful only if it is 

accompanied by efforts at the establishment of a national defence technology base. In this 

regard, Turkish experience differed markedly from the typical pattern of military-industrial 

evolution among other newly industrialising countries. The record of defence industrialisation 

in Türkiye evolved through a much less gradual process. 

9.   Conclusion 

Internationally, Turkish defence industry will have stringent competition in gaining 

access to third-country markets. However, the potential is extremely high for Turkey to develop 

an efficient export development strategy. The defence market is becoming multipolar with a 

shifting interest from the North to the South with high dynamism. Emerging new defence 

expenditure patterns are seen, and sophisticated defence products and defence systems with 

roots in complex technologies are being purchased, particularly by countries with rapidly 

growing economies. 

Even though Türkiyes top defence industry manufacturers make not perhaps produce a 

great number of excellent international products annually, the success in the development of 

the defence industry will indeed give positive contributions to national security and defence. 

The Turkish defence industry is thoroughly integrated into the democratisation and 

normalisation process of social and economic life, national unity has finally been achieved, and 

an independent foreign policy formation. But what will be needed in the longer term is a 

transition from a narrowly defined, state-centered defence effort to competition on the home 

and foreign market, which is tied to the promotion of entrepreneurial behavior, the growth of 

civilian control, and a change of style towards defence policy. Without this transition, there is 

an increasing risk that the ability to establish a base of producers of advanced defence products 

will be lost and economic and societal costs associated with huge imports of weapons and 

equipment will be incurred instead. 

If defence exports and foreign participation by indigenous companies in defence 

programs abroad are made mandatory to the defence industry sector as some political goal, 

then this may lead to greater insularity of the defence sector and along with it ultimately to the 

limitation of its growth over the long run. The destiny of the defence sector and military-

technical cooperation significantly relies on the geopolitics and geoeconomics situation under 

which the Turkish Republic has developed its defence and military policy. The strength of the 

Turkish defence industry relative to other "emerging" ones stems from the acquisition by 

national enterprises of major licences for the manufacturing of advanced armament systems. 

 

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