Industrial Espionage and Productivity

  title={Industrial Espionage and Productivity},
  author={Albrecht Glitz and Erik Gustaf Meyersson},
  journal={Econometric Modeling: Macroeconomics eJournal},
In this paper, we investigate the economic returns to industrial espionage by linking information from East Germany's foreign intelligence service to sector-specific gaps in total factor productivity (TFP) between West and East Germany. Based on a dataset that comprises the entire flow of information provided by East German informants over the period 1970–1989, we document a significant narrowing of sectoral West-to-East TFP gaps as a result of East Germany's industrial espionage. This central… Expand
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