Company Intelligence Interface

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Information about Company Intelligence Interface
Business-Finance

Published on November 4, 2008

Author: aSGuest2547

Source: authorstream.com

The company-intelligence interface: Government policy, corporate expectations, competing futures : The company-intelligence interface: Government policy, corporate expectations, competing futures Mikhail Koulikov December 3, 2007 Moving along the intelligence spectrum : Market research Business intelligence Corporate intelligence Espionage/counter-espionage Difference in: Tools, techniques, skill sets NOT goals Moving along the intelligence spectrum The US government and economic intelligence1 – History : 1776: Committee on Secret Correspondence - Agent dispatched to Europe to report on tobacco market 1810s: Industrial espionage spurns growth of New England textiles industry World War I: War Department Economic Intelligence Section (John Foster Dulles) 1949: CIA: Informal links with business Office of Research Reports - Macroeconomic studies 1954: Guatemala: United Fruit Company 1962: Brazil: International Telephone and Telegraph Helsper (1958): Recommendation for “systematic study of industry at the corporate level.” The US government and economic intelligence1 – History The US government and economic intelligence2 – The Post-Cold War : “new missions and new objectives” Turner: “more symbiotic relationship between the worlds of intelligence and business.” Wright: “If other governments are spying on companies, why not us?” Kober: Economic threats are not national security threats CIA analysts not qualified to perform economic intelligence (New York Times: Top economics graduates not likely to commit to intelligence careers) Burton: “The additional money spent on…intelligence collection might produce better results if it were spent on improvements in education, research and development” The US government and economic intelligence2 – The Post-Cold War Competing ideas : DeConcini: Does business even want intelligence help? - Promoting competitiveness: YES - “Satisfying private requirements”: NO - Call to criminalize economic espionage Michal: What the business world needs is education about threats and vulnerabilities Fraumann (FBI): Business is responsible for protecting itself, intelligence community will help, but not lead. Russell: Government effective in intelligence-collection, less so in intelligence dissemination Hancock: “International standard of acceptable business intelligence practices.” Competing ideas Is the Corporate/Intelligence Interface Legal? : Pre-1996 - 1947: National Security Act - 1981: Executive Order 12333 “Timely and accurate information about the activities, capabilities, plans, and intentions of foreign powers, organizations, and persons and their agents, is essential to the national security of the United States.” - Sherman Antitrust Act - State-level intellectual property law - Espionage vs. counter-espionage 1996: Economic Espionage Act: commercial spying a law-enforcement issue Is the Corporate/Intelligence Interface Legal? 1996 Economic Espionage Act : “Whoever, intending or knowing that the offense will benefit any foreign government, foreign instrumentality, or foreign agent, knowingly -- (1) steals, or without authorization appropriates, takes, carries away, or conceals, or by fraud, artifice, or deception obtains a trade secret:(2) without authorization copies, duplicates, sketches, draws, photographs, downloads, uploads, alters, destroys, photocopies, replicates, transmits, delivers, sends, mails, communicates, or conveys a trade secret: (3) receives, buys, or possesses a trade secret, knowing the same to have been stolen or appropriated, obtained, or converted without authorization: (4) attempts to commit any offense described in any of paragraphs (1) through (3); or (5) conspires with one or more other persons to commit any offense described in any of paragraphs (1) through (4), and one or more of such persons do any act to effect the object of conspiracy.shall, except as provided in subsection (b), be fined not more than $500,000 or imprisoned not more than 15 years, or both. 1996 Economic Espionage Act Competitive intelligence literature : Herring (1994): - Intelligence community is obligated to aid the competitiveness of American business - Corporate leaders ignorant of what intelligence can offer - Intelligence not able to tailor offerings to needs of business - Government’s greatest asset is open-source information Calof (1997): 76% of firms asking for “better intelligence” Lisse: Ethics of taxpayer dollars going to advance corporate interests Competitive intelligence literature Economic intelligence and national security : Bolick: “a nation needs economic power to act as a foundation and to support its other spheres of national power” Flynt: Economic espionage as national security threat Economic intelligence and national security Current Situation : Overwhelming majority of foreign economic espionage in the US is private US National Counterintelligence Policy: Intelligence Community obligated to: - “protect economic advantage, trade secrets and know how” - “collaboration between intelligence agencies, law-enforcement organizations and the business community in assessing and responding to economic espionage threats.” - Wide range of “vital national assets” - National Counterintelligence Executive: “antiquated notion” that only defense-related or classified projects are worthy of counterintelligence support Current Situation Strategic Analysis : Political Government support for economic counter-intelligence Economic Espionage Act criminalizes spying BUT Not strong enough: Cost of being caught not prohibitive Enforcement may be lower priority than counter-terrorism, etc. NO explicit political support for tasking intelligence agencies with conducting economic intelligence missions on behalf of private companies Can competitiveness of non-U.S. firms be limited without explicitly aiding U.S. companies Economic intelligence vs. economic warfare Strategic Analysis Strategic Analysis (continued) : Economic - Espionage will complement, not replace, market research, etc. - Protection against espionage is NOT protection against competition Social/ethical - Potential accusations of helping companies gain unfair advantage - What if some companies take advantage of intelligence assistance and others do not? - Possible negative publicity for cozy links with government Technological - What is the best method of dissemination of government intelligence support? - What defines an “American company?” Strategic Analysis (continued) Conclusions : Espionage is a real concern for American firms Countering economic espionage is a valid activity for U.S. intelligence Better understanding of intelligence capabilities of government and intelligence needs of business Move beyond the intelligence community model: Information-gathering/sharing by other government entities may be more appropriate for the unique demands of corporate world In the long run, deterrence, not interdiction, may be the most effective approach Conclusions

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