Source: Voice of America VOA News Report
News

DATE=2/25/97
TYPE=CORRESPONDENT REPORT
NUMBER=2-210559
TITLE=U-S / ECONOMIC ESPIONAGE (L)
BYLINE=MAXIM KNIAZKOV
DATELINE=WASHINGTON
CONTENT=
VOICED AT: 

INTRO:  AN AMERICAN PROFESSIONAL ASSOCIATION SAYS ECONOMIC 
INTELLIGENCE GATHERING IS BECOMING AN ALMOST UNIVERSAL 
PHENOMENON.  MAXIM KNIAZKOV REPORTS THE SOCIETY OF COMPETITIVE 
INTELLIGENCE PROFESSIONALS PRESENTED ITS FINDINGS TUESDAY IN 
WASHINGTON.

TEXT:  IN DOCUMENTS DISTRIBUTED AT ITS SYMPOSIUM, THE SOCIETY OF 
COMPETITIVE INTELLIGENCE PROFESSIONALS SAID ECONOMIC INTELLIGENCE
GATHERING HAS MUSHROOMED INTO A BUSINESS IN ITS OWN RIGHT.

IT IS NO LONGER JUST FOREIGN GOVERNMENTS OR COMPETITORS VERSUS 
THE UNITED STATES.  SOCIETY EXECUTIVE DIRECTOR GUY KOLB SAYS U-S 
CORPORATIONS HAVE SHOWN THEIR WILLINGNESS TO TAKE ON THEIR RIVALS
WHEREVER THEY ARE.

                       // ACT ONE KOLB // 

         COMPETITIVE INTELLIGENCE AS A PROFESSION HAS COME TO BE 
         SEEN AS A NECESSITY IN AN INFORMATION ERA MARKED BY 
         HYPER-COMPETITION WITHIN A GLOBAL ECONOMY.  THE NUMBER 
         OF LARGE CORPORATIONS WITH COMPETITIVE INTELLIGENCE 
         UNITS HAS TRIPLED SINCE 1988 TO ABOUT 10-PERCENT OF THE 
         CORPORATIONS IN THE UNITED STATES.  THIS IS ACCORDING TO
         STUDIES BY THE FUTURES GROUP, A GLASTONBERY, 
         CONNECTICUT-BASED CONSULTING FIRM. 

                         // END ACT // 

MR. KOLB SAYS 80-PERCENT OF U-S COMPANIES HAVE ADOPTED WHAT HE 
CALLED -- AN ORGANIZED APPROACH -- TO COLLECTING BUSINESS 
INFORMATION AND FEEDING IT TO THEIR DECISION-MAKERS. 

MEANWHILE, U-S GOVERNMENT REPORTS SHOW ECONOMIC INTELLIGENCE 
GATHERING BY FOREIGNERS IS ALSO EXPERIENCING A BOOM.  THE FEDERAL
BUREAU OF INVESTIGATION WAS PROBING 800 ECONOMIC ESPIONAGE CASES 
AS OF LATE LAST YEAR.  THIS IS TWICE AS MANY AS THE YEAR BEFORE.

THE PRESIDENT OF A COMPANY SPECIALIZING IN BUSINESS INTELLIGENCE 
AND COUNTERINTELLIGENCE, BILL DEGENARO, SAYS U-S ANNUAL LOSSES 
FROM FOREIGN ECONOMIC ESPIONAGE ARE STAGGERING. 

                     // ACT TWO DEGENARO // 

         I HAVE HEARD NUMBERS AS HIGH AS 100-BILLION DOLLARS IN 
         LOSSES FROM ALL FORMS OF ESPIONAGE AND PIRACY. 

                         // END ACT // 

AS FOR THE PERPETRATORS, MR. DEGENARO NAMED FRANCE, ISRAEL, AND 
CHINA AMONG THE WORST OFFENDERS.  BUT HE POINTED OUT THE LIST IS 
BY NO MEANS LIMITED BY THESE THREE COUNTRIES. 

                    // ACT THREE DEGENARO //

         THERE ARE PROBABLY SOMEWHERE BETWEEN 20 AND 50 COUNTRIES
         THAT HAVE ON OCCASION DEMONSTRATED THEIR WILLINGNESS AND
         ABILITY TO USE THEIR GOVERNMENT ASSETS TO ACQUIRE 
         INFORMATION OF BEHALF OF THEIR LOCAL COMPANIES. 

                         // END ACT // 

LAST YEAR, PRESIDENT BILL CLINTON SIGNED INTO LAW THE ECONOMIC 
ESPIONAGE ACT, GIVING FEDERAL AGENCIES NEW TOOLS TO COMBAT THE 
THEFT OF PROPRIETARY BUSINESS INFORMATION.  SYMPOSIUM 
PARTICIPANTS EXPRESSED THE HOPE THE NEW LAW WILL HELP SLOW THE 
SPREADING INTERNATIONAL AND DOMESTIC HUNT FOR TRADE SECRETS.   
(SIGNED) 

NEB/MAX/RAE

25-Feb-97 12:20 PM EST (1720 UTC)
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