Stasi Economic Espionage Lifted East German Output by 7.4%, Study Finds

East Germany's extensive economic espionage during the 1970s and 1980s raised its overall economic output by 7.4% at the end of the 1980s, according to a study by the Rockwool Foundation Berlin.

Industrial value added was 22.3% higher as a result of the espionage, equivalent to 20.2 billion East German marks, or €4.1 billion ($4.7 billion) in 2020 prices. All estimates refer to 1988, the year before the Berlin Wall fell.

The Stasi, East Germany's sprawling intelligence service, helped companies obtain scientific and technical information from Western businesses and research institutions. Firms that received useful intelligence recorded faster productivity growth, invested more and concentrated more on core products.

"Stasi espionage strengthened East Germany's position within the socialist bloc," said Albrecht Glitz, a co-author of the study. "It did not, however, significantly improve success in Western markets."

The researchers said the gains also spread through supplier and customer networks, supporting broader economic effects. Each additional valuable piece of information produced an estimated annual return of about €330,000 in 2020 prices.

Co-author Adrian Lerche said the findings had present-day relevance as governments tighten export controls, screen foreign investment and seek to protect strategic technologies.