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Goran Basarac
Episode · #342

RITAM POSLA Goran Basarac

Guest Goran BasaracHosted by Lidija KiseljakMay 3, 2026
About this episode
What you'll hear in this conversation

For years, the European Union's structural funds were off-limits to the defense industry. Yet, Goran Basarac, President of the Croatian Cluster of Competitive Defense Industry, helped turn this exclusion into an opportunity. His work didn't just open doors to EU funding; it redefined what an industry cluster could be: not a temporary consortium, but a permanent engine for R&D, market access, and global competitiveness. Basarac, also a director at Šestan-Busch focusing on strategic development, shares how this cluster grew from forty to seventy members, securing hundreds of millions in non-refundable funds. He details the strategic shifts that allowed the defense sector to engage with EU initiatives, and how this model is now being replicated internationally. Listeners will learn how to build lasting value and influence for a specialized industry, even when starting from a position of regulatory exclusion.

Insights from the conversation
What to take from this episode
01
The early model of 'communities of bidders' in Croatia often dissolved once a specific economic interest was met. Basarac explains that a true industrial cluster, by contrast, supports long-term competitiveness, R&D, and internationalization, rather than just short-term project collaboration.
02
Between 2007 and 2013, EU structural funds explicitly excluded the defense industry. The cluster's initial focus was to change this for the 2014-2020 perspective, successfully opening funding for research and development of dual-use products. Regulatory barriers are not static; they can be systematically addressed and shifted with a clear, unified industry approach.
03
The cluster operated for years on voluntary membership without fees. When members were asked to vote on introducing fees in October 2020, during the height of the pandemic, approximately 50-60 companies voted almost unanimously in favor. The ultimate proof of an association's value is its members' willingness to pay for it, especially during a crisis.
04
Through its active role in animating the sector and assisting with applications, the cluster helped secure approximately 550 million HRK (around 73 million EUR) in non-refundable EU funds for 20-30 member companies. Quantifiable financial outcomes for members are the strongest argument for an industry association's existence.
05
Rather than individual companies seeking international markets, the cluster signed cooperation agreements with defense clusters in Portugal, Slovenia, Estonia, and is soon to sign with France. These cluster-to-cluster connections provide direct access to foreign Ministries of Defense and police forces. Market entry for specialized sectors is often more effective through collective, institutional partnerships than through isolated efforts.
06
The new 2021-2027 European Defence Fund requires collaboration with national Ministries of Defense. The Croatian cluster has been contracted by the Ministry of Defense to prepare a pipeline of project ideas for their verification. For complex international funding, an industry association becomes a critical partner to government, co-creating the project agenda.
07
Croatia's defense industry is dispersed across various segments like protective equipment (Šestan-Busch), weapons (HS Produkt), and robotics (DOK-ING). Basarac emphasizes that even a fragmented sector can achieve global competitiveness by focusing R&D efforts on specific niches where it already excels.
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