The presentation of innovative ideas is one of the most prominent features of military organizations during the history of the great wars in the world. Accordingly, defense organizations of the country should continue to strive to shape innovation and become an innovative organization in order to create and maintain sustainable deterrence. The purpose of this qualitative research is to design a model through which the system of innovation in Iran's defense organizations can be explained. According to the research purpose, the method of qualitative research approach and grounded theory method was used. The statistical population of the research is directors and active administrators in the defense sector with 25 interviewees with theoretical saturation logic and snow ball method. In this way, through interviewing and analyzing the documents, and by studying the theoretical literature, theories and existing theories about organizational innovation, their concepts, categories and propositions were collected, Then, using the grounded theory method, the model of the innovation system in defense organizations, including the categories of innovation triggers, re-engineering of innovation processes, organizational empowerment factors, and environmental factors were identified that strategic implications will be innovation in organizational structure, human capital, education, research, technology, Equipment and systems.