Industrial or Economic Espionage :: International Business Competition Essays

Industrial or Economic Espionage A small Mississauga electronics safety equipment company is broken into. Although filing cabinets and desks were rummaged through, nothing was seemingly taken. An officer discovered the company had drawn up a bid for $7 million dollar contract a day or so before the break-in. The contract in question was for a foreign country. It was later discovered that the company in question was known for its aggressive economic espionage. An iron ore shipping company was also broken into. At first it was thought that the target had been the firms computers. But, nothing was taken, it was assumed that the burglars had been scared off. Within thirty minutes it was discovered that the company was approaching its fiscal year end. staff eventually found that most of the recent database backup tape was missing. A Quebec based company with the laser-based system for inspecting materials used in, among other things, the stealth aircraft, had three computers stolen. On their harddrives were confidential codes for specialized software used by the Canadian Armed forces. The above are all true examples of the modern threat facing international business today known as industrial or economic espionage. The end of the cold and economic pressures have increased the risk of economic espionage. The collapse of the Soviet Union has left unemployed KGB and other former communist bloc intelligence agents selling everything from Russian night vision devices to completely assembled and functional bugging devices. Even friendly western European governments have been caught spying on private corporations based in the U.S. and other countries, while industrial competitors sometimes hire private companies to collect competitive intelligence from their corporate rivals( Lester:96). What exactly is economic espionage? how prevalent is it? Who does it? How do they do it? and what can we do to stop it. These are the questions that will be looked at in the following pages. First lets look at, what exactly is economic espionage. Espionage and intelligence is no longer the exclusive domain of monarchs and governments, it has become a must for modern international business. Large corporations around the world particularly in western Europe and Asia now hire agents to gather intelligence on their competitors and other countries. The goal of economic espionage is to steal trade secrets, plans and confidential procedures or anything to give your company or country a competitive edge over another (Perry:1996). The areas that interest industrial spies the most include radiation transfer technology, systems diagnostic and testing software, traveling wave tubes, aviation technologies, microwave monolithic integrated circuits, inferred signature measures software, radar technologies, wet