Purpose - After the transition, the development of defense industry in Eastern Europe has been regressed. Recently, they have internationally recognized that new products have been exported and contributed to the Innovation-Based Manufacturing of national economy such as unmanned reconnaissance aircraft, water purification technology, and mobile chemical laboratory, etc. The military forces in Eastern Europe are re-armed by the localization of self-produced munitions in their own defense industry, and then emphasize fostering their own defense industry. Thus, if they make a collaboration with other nations as a industrial cluster, it will gain a competitive edge on the defense industry. Research design, data, and methodology - The study was designed with the data of each national defense department. The research of the subject was reviewed before and after the transition. Thousands of workers have worked in defense industries before the transition, however, the defense industry and experts left after the transition. The Hungarian defense spending on GDP also dropped sharply from 1.72% in 2000 to 0.85% in 2013. But, due to the crisis in Ukraine and the crisis of Syrian refugees, the Viségrad Group (V4) member countries have also increased their interest in a defense and industries as well as the confidence in the EU and NATO. Results - On the whole, the joint of military training and purchase of defense materials were found in order to form the EU cooperative combat troops in CEE. There are the implementation of a joint manual plan for strengthening V4 security policy and the joint military exercises for V4 every year, and the others are electronic warfare and innovation of V4 national forces. Through such a performance analysis methodology, we found that the defense industry is developed through the national cluster cooperation among CEEs and spreading global distribution. Conclusions - Eastern Europe and Balkan countries have been looking forward to cooperating with the non-EU countries such as Korea and other defense industries. There are a lot of potential development into a new civilian cooperation defense industry for global-distribution. Thus, Korea should develop electronic commercial applications, not just as a weapon exporting region.
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