Study finds East German espionage boosted its 1988 industrial output

According to a study conducted by the Rockwool Foundation Berlin, the German Democratic Republic benefited markedly from a large-scale economic espionage program directed at Western firms and research institutes. The analysis attributes a measurable increase in industrial value added to the flow of stolen technical and scientific information, with each valuable item generating roughly 330,000 euros (or 1.64 million Ostmark) in annual economic benefit.

Firms that accessed these insights displayed accelerated productivity growth, higher capital investment, greater dependence on intermediate inputs and a tighter focus on their main product lines. These gains propagated through supply-chain networks, boosting the broader economy. Project leader Albrecht Glitz noted that while espionage strengthened the GDR’s position within the socialist bloc, it did not markedly improve its competitiveness on Western markets. Co-author Adrian Lerche highlighted the study’s contemporary relevance for issues such as export controls, industrial policy and protection of intellectual property.