Related Topics:
espionage

industrial espionage, acquisition of trade secrets from business competitors. A by-product of the technological revolution, industrial espionage is a reaction to the efforts of many businessmen to keep secret their designs, formulas, manufacturing processes, research, and future plans in order to protect or expand their shares of the market.

A considerable amount of data on what the competition is doing comes from routine and undramatic sources. Some large retail chains, for example, employ corps of agents to check on prices and products of competitors by comparative shopping. Equally fruitful are regular lines of communication, such as salesmen’s reports, trade magazines, newsletters, business conventions, trade fairs and exhibits, and contacts with suppliers. Analysis of competitor products is yet another source of important commercial intelligence.

Actual trade secrets may find their way into the open market through several channels. The disloyal employee may furtively seek out competitors and peddle confidential data to the highest bidder. A more common technique is the group conspiracy: several employees, usually technicians and others of high managerial calibre, leave a company and set up a competitive firm capitalizing on confidences they gained while on the payroll of their former employer. A variation of this practice occurs when a competitor lures away a valuable employee with offers of more money and benefits, in the hope that the pirated worker will make his store of secrets available to his new employer.

An employer who discovers that his trade secrets have been adopted by a competitor usually takes legal steps to prevent further invasions of his commercial privacy. The penalties against companies found guilty of usurping trade secrets may be an injunction against further use of the knowledge, an accounting and payment of all profits made from the utilization of pilfered information, or additional punitive damages if a violation of the company’s rights has been flagrant.

intelligence, in government and military operations, evaluated information concerning the strength, activities, and probable courses of action of foreign countries or nonstate actors that are usually, though not always, enemies or opponents. The term also is used to refer to the collection, analysis, and distribution of such information and to secret intervention in the political or economic affairs of other countries, an activity commonly known as “covert action.” Intelligence is an important component of national power and a fundamental element in decision making regarding national security, defense, and foreign policies.

Nature of intelligence

Levels of intelligence

Intelligence is conducted on three levels: strategic (sometimes called national), tactical, and counterintelligence. The broadest of these levels is strategic intelligence, which includes information about the capabilities and intentions of foreign countries. Tactical intelligence, sometimes called operational or combat intelligence, is information required by military field commanders. Because of the enormous destructive power of modern weaponry, the decision making of political leaders often must take into account information derived from tactical as well as strategic intelligence; major field commanders may often also need multiple levels of intelligence. Thus, the distinction between these two levels of intelligence may be vanishing.

Counterintelligence is aimed at protecting and maintaining the secrecy of a country’s intelligence operations. Its purpose is to prevent spies or other agents of a foreign power from penetrating the country’s government, armed services, or intelligence agencies. Counterintelligence also is concerned with protecting advanced technology, deterring terrorism, and combating international narcotics trafficking. Counterintelligence operations sometimes produce positive intelligence, including information about the intelligence-gathering tools and techniques of other countries and about the kinds of intelligence other countries may be seeking. Counterintelligence operations sometimes involve the manipulation of an adversary’s intelligence services through the placement of “moles,” or double agents, in sensitive areas. In authoritarian and totalitarian states, counterintelligence also encompasses the surveillance of key elites and the repression of dissent.

Governments often direct their intelligence services to perform covert actions to support diplomatic initiatives or to achieve goals that are unattainable by diplomatic means alone. The U.S. Central Intelligence Agency (CIA), for example, organized the overthrow of the government of Guatemala by military coup in 1954 and helped to undermine the government of President Salvador Allende (1908–73) of Chile prior to the military coup there in 1973. More recently, U.S. covert actions have included providing military and financial support to the mujahideen (from Arabic mujāhidūn, “those who engage in jihad”), who fought Soviet troops in Afghanistan during the 1980s, and aiding U.S. and British military forces in their campaign against Afghanistan’s Taliban government in 2001. Earlier in the 20th century, the intelligence services of the Soviet Union assassinated exiled political figures such as Leon Trotsky (1879–1940) and supported Marxist-Leninist organizations throughout the world.

Types of intelligence

The types of intelligence a country may require are extremely varied. The country’s armed services need military intelligence, its space and Earth-satellite programs need scientific intelligence, its foreign offices need political and biographical intelligence, and its premier or president needs a combination of these types and many others. Consequently, intelligence has become a vast industry. At the beginning of the 21st century it was estimated that the U.S. government spent some $30 billion annually on intelligence-related activities, employing perhaps 200,000 people in the United States and many thousands more U.S. citizens overseas in both clandestine and overt capacities. The intelligence operations of the Soviet Union were likely of even greater dimensions prior to the dissolution of the country in 1991. All other major countries maintain large intelligence bureaucracies.

Political intelligence is at once the most sought-after and the least reliable of the various types of intelligence. Because no one can predict with absolute certainty the effects of the political forces in a foreign country, analysts are reduced to making forecasts of alternatives based on what is known about political trends and patterns. Concrete data that are helpful in this regard include voting trends, details of party organization and leadership, and information derived from analyses of political documents. A chief source of political intelligence has long been the reports of diplomats, who normally gather data from “open,” or legally accessible, sources in the country where they are stationed (see diplomacy). Their work is supplemented by that of the professional intelligence apparatus.

Much military intelligence is gathered by military attachés, who have formal diplomatic status but are known to be mainly concerned with intelligence. Space satellites produce reliable information about the composition of military units and weapons and can track their movements; satellites are especially important for monitoring a country’s production of strategic ballistic missiles and weapons of mass destruction (i.e., biological, chemical, and nuclear weapons). The most valuable kinds of military intelligence concern military organization and equipment, procedures and formations, and the number of units and total personnel.

Are you a student?
Get a special academic rate on Britannica Premium.

The state of a country’s economy is crucial to its military strength, its political development, and the conduct of its foreign policy. Consequently, intelligence organizations attach great importance to the collection of economic information, including data on trade, finance, natural resources, industrial capacity, and gross national product.

Because of continuous advances in technology, there has been a constant race between new methods of collecting intelligence and new techniques of protecting secret information. In order to guard against scientific or technological breakthroughs that may give other countries a decisive advantage, intelligence organizations keep abreast of foreign advances in nuclear technology, in the electronic, chemical, and computer sciences, and in many other scientific fields.

In order to make accurate predictions of a foreign country’s future behaviour, intelligence systems obviously require detailed information about the personal characteristics of the country’s leaders. The need for biographical information has expanded with the proliferation of international organizations, whose officers must be briefed about their foreign counterparts. Intelligence agencies also compile data on foreign populations, topographies, climates, and a wide range of ecological factors.