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Annual Report to Congress on Foreign Economic Collection and Industrial Espionage: 1997

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Annual rept.

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The Intelligence Authorization Act for Fiscal Year 1995 requires that the President annually submit to Congress updated information on the threat to U.S. industry from foreign economic collection and industrial espionage. This report updates the second Annual Report to Congress on Foreign Economic Collection and Industrial Espionage 1996, which was released in May 1996. Among the key findings are the following the Economic Espionage Act of 1996, signed by President Clinton, will help to protect valuable U.S. trade secrets updated information reaffirms the findings of the 1996 Annual Report and includes the origin of the threat, collection targets, and methods of operation traditional threat countries and a number of nontraditional threat countries continue their collection of U.S. trade secrets the U.S. counterintelligence community has specifically identified the suspicious collection and acquisition activities of foreign entities from at least 23 countries analysis of updated information indicates that of those identified countries, 12 are assessed to be most actively targeting U.S. proprietary economic information and critical technologies this list has not changed since the 1996 Annual Report the increasing value of trade secrets in the global and domestic marketplaces, and the corresponding spread of technology, have combined to significantly increase both the opportunities and motives for conducting economic espionage foreign collection continues to focus on U.S. trade secrets and ST information and products of particular interest to foreign collectors are dual-use technologies while the clandestine efforts of foreign intelligence services continue, changes in collection methods of operation are evidenced by a transition from reliance on clandestine and illegal activity to overt and legal collection methods this transition is not limited to commercially sponsored activity, but also includes foreign intelligence service activity.

Subject Categories:

  • Information Science
  • Economics and Cost Analysis
  • Government and Political Science
  • Sociology and Law

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