You can further increase your power by equiping items. Every item can provide up to 4 bonuses and improve your military and economic development.
Items can be crafted in the Tech District:, which you unlock when you upgrade your HQ to lvl 6. Crafting an item requires specific parts that come in 5 different qualities. Additionally the crafting process requires Nano-Materials.
Don't forget to fuse your parts to increase their quality. The better quality your parts are, the stronger the item will be. Still crafting is not an exact science, be aware of your chances when doing this action.
You can battle Encounters to get the required materials for your items. Defeating them gives not only experience for your general but also resources and potentially parts and nano-materials which you can use to create powerful items.