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The effect of industrial espionage on economic growth

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In an interesting article on The Diplomat website, the question is asked, “How does industrial espionage affect economic growth?” 

The article is based on a study by Erik Meyersson, an assistant professor at Stockholm School of Economics, who teamed up with Albrecht Glitz, an associate professor at Pompeu Fabra University.

The two academics analysed almost 200,000 informant reports in the old East German Ministry for State Security, otherwise known as the Stasi. 

Meyersson was interrogated by the Harvard Business Review, which, like The Diplomat, comes to the conclusion that industrial espionage does indeed have an affect on economic growth.

In fact, HBR’s headline for the piece is, “Industrial espionage is more effective than R&D”, which is quite emphatic.

The Diplomat concludes with another question, one which asks whether or not China – which, like most nations, has its spies, industrial or otherwise – has the administrative capacity to distribute this knowledge across its industrial sector.