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East German espionage raised GDP by 7.4% in late 1980s, study finds

Business Recorder • • 1 min read

East German espionage raised GDP by 7.4% in late 1980s, study finds

Business Recorder, citing Reuters, reported that East Germany's wide-ranging economic espionage during the 1970s and 1980s raised the country's total output by 7.4% at the end of the 1980s. The estimate is drawn from research by the Rockwool Foundation Berlin, which Reuters reviewed on Sunday. The Stasi, the vast intelligence agency of East Germany, supported companies in gathering scientific and technical knowledge from Western firms and academic bodies.

Thanks to the espionage, the industrial segment's added value climbed 22.3%, amounting to 20.2 billion East German marks or €4.1 billion ($4.7 billion) at 2020 prices. Every figure in the study relates to 1988, a year before the Berlin Wall came down. Companies that received valuable intelligence showed quicker productivity gains, higher investment and a sharper focus on their main products, while benefits also flowed through supplier and customer networks.

Co-author Adrian Lerche said the results remain pertinent today, as states move to tighten exports, scrutinise foreign investment and defend sensitive technologies. Albrecht Glitz added that the espionage lifted East Germany's standing among socialist countries, yet it did not meaningfully raise its results in Western markets. Researchers estimated that every extra useful item of intelligence yielded roughly €330,000 a year at 2020 prices.

At a glance

  • East German espionage lifted output by 7.4%, according to 1988 estimates.
  • Industrial value added rose 22.3%, worth 20.2 billion East German marks in 1988.
  • Firms that received useful intelligence grew productivity faster and invested more.

Originally reported by Business Recorder

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