This study seeks a method for formulating directional strategy of wind turbine industry in Iran. To this end, by initially evaluating various economic viewpoints concerning the development of industries, the necessity of government intervention is recognized. By defining the concepts of national industry policy, firm technology strategy, and national technology strategy, the role of directional industry strategy is then made clear. Furthermore, the six assumptions of emphasis on formulating strategy (rather than on formulating policy), emphasis on formulating directional strategy, model's prescriptivism, emphasis on formulating the strategy at the level of industry, Iran's being a developing country, and finally wind turbine industry's technology intensiveness are considered. Accordingly, we evaluate different models in the literature and select a model, which is in most agreement with the mentioned assumptions. Ultimately, by implementing this model in Iran's wind turbine industry, we identify the strategy of Iran's wind turbine industry. (C) 2011 Elsevier Ltd. All rights reserved.