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Mecha Upgrades
Mobile suits are frames onto which armor, weapons, systems and equipment is placed. While every frame is different, some can be changed. These changes take place in the form of upgrades with equipment and salvage to alter and (generally) improve a mobile suits performance. Not every mecha can be upgraded, but some have multiple upgrades.
Item Upgrades
While many items can be purchased from shops, some can only be created from scrap items. The down side is that you really have no idea what the blazes you are creating until after its done.
Once an item is created once, its full formula will be revealed so no one else will make the same mistake twice (or, will create that much more demand for the items you have)
As a sidenote: all items listed here have at least ONE of their major components avaliable right now. Some parts may be much rarer than others, and therefore will not be avalible until later