Industrial Espionage and Productivity

  title={Industrial Espionage and Productivity},
  author={Albrecht Glitz and Erik Gustaf Meyersson},
  journal={Econometric Modeling: Macroeconomics eJournal},
  • A. Glitz, E. Meyersson
  • Published 21 June 2017
  • Economics, History
  • Econometric Modeling: Macroeconomics eJournal
In this paper, we investigate the economic returns to industrial espionage. We show that the flow of information provided by East German informants in the West over the period 1970–1989 led to a significant narrowing of sectoral TFP gaps between West and East Germany. These economic returns were primarily driven by relatively few high-quality pieces of information and particularly large in sectors closer to the West German technological frontier. Our findings suggest that the East-to-West… 

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