In 1934 , the ARR decided to continue production of the PZL P-11 fighter under license. IAR works were up and running for almost 7 years and yet none of their designs had gone into mass-production. Some government officials were seriously concerned about the future of IAR's design bureau, due to lack of any firm orders for their projects.

For this reason, in early 1933 a unofficial message was sent ( "off-record" of course ) to the IAR staff, telling them that the ARR would purchase a small number of fighter-trainers, if they could supply it relatively quickly.

Upon hearing this, the IAR design team immediately set to work on a new type of airframe. The fuselage was rectangular in shape, built from metal and wood, with the front half covered with duralumin sheets and the rear half with pine plywood. From the previous designs, only the three-section wings were used again, whilst the tail was modified once more and the control surfaces were balanced. This time, the "anti-crash" pylon had dissappeared, since it had been realised that it caused a lot of drag without adding anything important for the pilot's safety ( overall, it was just not worth it ).

Carafoli would have desired a new engine for the IAR-14, but the lack of any real engine supply source outside IAR's own factory, and time pressure forced him to equip the aircraft with the same Lorraine-Dietrich 12 Eb powerplant that equiped the IAR-12, produced under license by IAR. The plane was armed once again with the two sincronized Vickers 7.7 mm machine guns firing through the propeller arc, each one having a 500 rounds supply of ammunition.

First test flights took place in June 1933, and early results were not very encouraging. Because the IAR-14 had to settle for the same engine as the unsuccesful IAR-12, the performances were quite the same. In September 1933, General Engineer Gheorghe Negrescu, the man in charge with liaisons between IAR and the government, filed its report on the IAR-14.