of spies by the Allies during World War 11 to defeat the Axis powers; and the Soviet Union's use of spies to steal atomic bomb secrets from their former allies, the United States and Britain. In the post Cold War era, however, increasing international economic competition has redefined the context for espionage as nations link their national security to their economic security. Spying conducted by intelligence services is expanding from its primary focus on military secrets to collecting economic secrets, i.e., to conducting economic espionage. The United States is particularly vulnerable to the changing focus of international espionage agencies since so many American corporations and research centers rely heavily on communications systems, computer networks, and electronic equipment to process and to store information. Over 50 countries have covertly tried to obtain advanced technologies from United States industries (U.S. Senate, 1996a). In 1995, the annual cost of economic espionage to corporate America was conservatively estimated to be at least $50 billion. If intellectual property theft and unrestricted technology transfer are included, the estimate rises up to $240 billion (Perry, 1995, 3). A wide range of federal statutes provide the authority for activities that counter economic espionage. These activities are undertaken by at least nine federal agencies, including the FBI, which has the dominant role. However, given the extent of the ...
