Abstract The purpose of this research is theory building about succeeding through R&D collaborations in defense industries. The grounded theory strategy, used in this research, will help to analyze this phenomenon in terms of its core category, context, strategies and conditions. In summery the result of this research is presented in terms of «Acquisition Competency» theory. The theory reveals that new product development and industrial renewal in defense industries depends on networking, aligning and fertilizing of capabilities. «Acquisition Competency» emerges in recreation of defense industries value stream and results identification, combination, focalizing of defragmented capacity and capability within and beyond defense industries. By developing «Acquisition Competency» existent capacities and capabilities will be reorganized in «knowledge based cores and wide capable networks» array and then exchange together in which effective whole weapon system is created in expected time, cost. quality and flexibility. Keywords: Acquisition Competency, Acquisition Cores, Networking, Industrial Renewal, Defense Competency Creation, Grounded Theory
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