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

BERLIN: East Germany’s extensive Cold War economic espionage in the ​1970s and 1980s lifted its overall economic output ‌by 7.4% at the end of the 1980s, according to a study by the Rockwool Foundation Berlin, seen by ​Reuters on Sunday.

Here are some more details:

Industrial ​value added was 22.3% higher due to espionage, ⁠equivalent to 20.2 billion East German marks, or €4.1 ​billion ($4.7 billion) in 2020 prices. All estimates refer ​to 1988, the year before the Berlin Wall fell.

Co-author Adrian Lerche said the findings had present-day relevance as governments tighten ​export controls, screen foreign investment and seek to ​protect strategic technologies.

The Stasi, East Germany’s sprawling intelligence service, helped companies ‌obtain ⁠scientific and technical information from Western businesses and research institutions. Firms receiving useful intelligence recorded faster productivity growth, invested more and concentrated more on core ​products.

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“Stasi espionage ​strengthened East Germany’s ⁠position within the socialist bloc,” said Albrecht Glitz, co-author of the study.

“It ​did not, however, significantly improve success in ​Western ⁠markets.”

The gains also spread through supplier and customer networks, supporting broader economic effects, the researchers said. Each additional ⁠valuable ​piece of information produced an ​estimated annual return of about €330,000 in 2020 prices.