East German espionage lifted 1988 economic output by 7.4%, study finds

  • The Stasi helped East German companies acquire scientific and technical information from Western institutions.
  • Industrial value added was 22.3% higher, equal to 20.2 billion East German marks in 1988.
  • The estimates cover 1988, one year before the Berlin Wall fell.

East Germany’s economic espionage during the 1970s and 1980s increased its overall economic output by 7.4% in 1988, the year before the Berlin Wall fell, according to a study by the Rockwool Foundation Berlin seen by Reuters. Industrial value added was 22.3% higher, equivalent to 20.2 billion East German marks, or €4.1 billion ($4.7 billion) in 2020 prices. The Stasi helped East German companies obtain scientific and technical information from Western businesses and research institutions. Companies that received useful intelligence achieved faster productivity growth, invested more and focused more on core products, while the gains also spread through supplier and customer networks. Co-author Albrecht Glitz said the espionage strengthened East Germany’s position within the socialist bloc but did not significantly improve its success in Western markets. Each additional valuable piece of information generated an estimated annual return of about €330,000 in 2020 prices. Co-author Adrian Lerche said the findings remain relevant as governments tighten export controls, screen foreign investment and seek to protect strategic technologies.

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