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This report reviews case histories of industrial espionage publicized in the media and in Congressional hearings. The threat to the United States as the world's largest investor in R&D is magnified by the transition from a cold war military confrontation of the super powers to an economic competition in global markets. To sustain their market share, France, Japan and Russia have initiated national programs to acquire U.S. technical know-how. Former intelligence staff now distill fragments of sensitive information into meaningfiil knowledge to guide industrial and national efforts to ascertain dominance. This threat is amplified by the exponential proliferation of global communication networks, like INTERENET, that reach into corporate America and permit unseen adversaries to probe the vast U.S. data stores for unprotected intelligence. Counter intelligence in industrial espionage by the United States on a national level is virtually impossible because of public scrutiny in the open society. On the positive side, the upheaval of a rapid transition from high-tension and high economic stability to low-tension and high economic instability is prompting international collaboration against international terrorism. On the corporate level, strategic alliances with foreign firms are expanding to sustain competitiveness and innovation in areas of specialty. A national security plan to protect the U.S. information resources is needed; and a viable policy to operate the information highways as safe conduits for electronic business. The well being of the global economy is at stake and should not be left to chance and provocation.