Minister Anušić: We Have Great Potential to Develop Our Economy and Defence Industry

The Ministry of Defence and the Croatian Chamber of Economy organised, on Wednesday, 25 March 2026, an event dedicated to the Croatian defence industry, titled “Economy and Defence Industry”. The event took place at the Croatian Armed Forces’ Zvonimir Hall in Zagreb.

On this occasion, a project was presented that mapped the potential capacities of domestic companies within the defence industry. This project was carried out by the Croatian Chamber of Economy and the Ministry of Defence.

Deputy Prime Minister and Minister of Defence Ivan Anušić emphasised that both the Croatian defence industry and the national economy have strong prospects for growth. “Croatia is strong in innovation and benefits from unique experience gained during the Homeland War. The Croatian defence industry may be small, but it provides excellent technological solutions,” said the minister.

Minister Anušić expressed his satisfaction with the launch of the mapping of potential capacities of domestic companies for inclusion in the defence industry. He highlighted that the objective of his bilateral meetings across Europe and worldwide is to promote the Croatian defence industry. “We have the potential to develop our economy, create new jobs, strengthen economic growth, and retain our workforce in Croatia,” he said.

He also mentioned the re-introduction of basic military training, underlining in that context the excellent response from young people.

President of the Croatian Chamber of Economy, Luka Burilović, pointed out that this represents the first comprehensive insight into the market potential of this sector. “We are not talking only about those that already operate within the industry but also about those that intend to join and expand their presence in the defence sector. We are talking about an entire ecosystem currently comprising more than 180 companies.

The mapping results indicate that we have solid foundations: more than 75 per cent of companies have their own production. At the same time, they highlight that there is room for improvement, such as reducing the dependence on components produced in third countries. The mapping exercise does not end here – companies can continue to come forward, and the Croatian Chamber of Economy stands ready to assist them in turning their ambitious development plans into reality,” Burilović stated.

Mapping Results

According to the mapping results covering 183 domestic companies, 29 per cent operate in advanced manufacturing, while an additional 14 per cent are engaged in engineering and research and development. With regard to research and development, 62 per cent of companies have their own new product development departments, and investment in R&D ranks among their key priorities. A total of 67 per cent of companies actively cooperate with scientific institutions and universities. As many as 81 per cent already export to NATO and EU member state markets, confirming the sector’s international competitiveness. Dual-use technologies are of particular importance, with 61 per cent of companies developing solutions applicable in both civilian and military sectors.
Supply chain resilience remains a challenge. Although 43 per cent of suppliers are located within the EU and 38 per cent reside in Croatia, dependence on third markets and key components such as machinery and electronic systems persists. Readiness for cooperation is high. 67 per cent of companies are directly exposed to market competition, and 98 per cent are willing to cooperate with competitors in crisis situations. Logistical readiness is at a high level, with 85 per cent of companies capable of delivering goods within 15 days. A subcontracting network already exists: 43 per cent of companies use subcontractors, while the majority (57 per cent) have yet to develop such networks, indicating the need for considerable improvement to strengthen the value chain.

Companies have ambitious development plans that focus on capacity expansion, innovation, digitalisation and internationalisation. Notably, 34 per cent of companies are already applying artificial intelligence and computer vision, while 69 per cent of them utilise automation and robotics. An increasing number of companies recognise opportunities for business diversification. The strongest interest is directed towards the cooperation with the Croatian Armed Forces (26 per cent), as well as EU and NATO research and development projects (21 per cent), testing with the Ministry of Defence and the Ministry of the Interior (19 per cent), and certification (17 per cent).

As part of the Economy and Defence Industry event, a panel discussion was held involving the representatives of the business community on industrial partnerships in the defence sector.

In addition to Deputy Prime Minister and Minister of Defence Ivan Anušić, the event was attended by State Secretaries at the Ministry of Defence Tomislav Galić, Branko Hrg, and Drago Matanović; Director of the General Staff of the Croatian Armed Forces Major General Denis Tretinjak; President of the Croatian Chamber of Economy Luka Burilović; and numerous representatives of Croatian companies.