AbstractThis paper discusses the methodology developed for the Industrial Development Bank of Turkey for the purpose of measuring the competitiveness of local manufacturing firms in foreign markets. First, an industrial competitiveness model which incorporates both the firm's and foreign competititors' input costs, technological characteristics and political-economic environments is summarized. Then an application of this model to 30 selected local firms in textiles, stone and soil, and food industries is described. The results indicate that some of the selected firms are quite competitive in European, North African and Middle Eastern countries, and can export to these markets without much difficulty. Moreover, the methodology employed in this study promises to be useful in identifying the weaknesses and strengths of industries, albeit in general terms, to formulate government policies.