Targeting U.S. Technologies: A Trend Analysis of Cleared Industry Reporting

It was not until the mid-19th century that scientific analysis refuted the archaic yet generally accepted belief that foul air caused disease. According to the long-held “miasma” theory, this noxious influence was generalized, and anyone could fall victim to a variety of diseases at any time. Trying to understand, predict, and prevent the spread of disease was nearly useless.

In 1854, John Snow conducted a scientific analysis that traced a particular disease outbreak to one specific London well, and demonstrated that cholera befell only those who drank water from it. The application of careful analysis provided a better understanding of the spread of disease. Similarly, the Defense Security Service (DSS) applies analysis to an ever-growing body of reports to better identify the threat to sensitive or classified information and technology resident in the U.S. cleared industrial base, and provides industry with the information needed to protect against foreign collectors.

Sometimes it can seem as if our adversaries surround us with a pervasive, “miasmatic” atmosphere, in which dangerous influences can seep in from any direction at any time, poison our industrial, military, and economic health, and mysteriously leave our warfighters’ lives endangered and our national security weakened. But we know that, while general factors and overall trends affect the ongoing battle to protect U.S. technology, intellectual property, trade secrets, and proprietary information from foreign targeting, in practice every collector’s attack comes in the form of an individual approach, contact, probe, request, or stratagem. A dangerous, generalized miasma of foreign opportunism may seem to swirl invisibly around the U.S. cleared industrial base, but on a daily basis cleared contractors, DSS, and their partners face concrete threats with which they must resolutely grapple in a practical and effective manner.

This annual publication, Targeting U.S. Technologies: A Trend Analysis of Cleared Industry Reporting, represents part of the effort to maximize the effectiveness of those endeavoring to maintain our national security. DSS builds on the information contained in reports from industry to develop analytical assessments that articulate the threat to U.S. information and technology resident in cleared industry. As cleared contractors and DSS personnel “in the field” attempt to seal off cleared industry from antagonists’ noxious infiltration attempts, they report on their efforts. DSS then collects those reports and evaluates and analyzes them.

This process benefits our national security, warfighters, cleared industry partners, and local communities. The information contained in this report helps employees, companies, and intelligence and law enforcement professionals better understand the nature of the pervasive influences that oppose us, regarding both continuities and fluctuations. Increased awareness of the U.S. technologies being targeted by foreign entities and the methods of operation used to attempt to acquire those technologies can only make us better at identifying and thwarting illicit collection attempts. In fiscal year 2012, our combined efforts produced 657 operations or investigations based on information that industry provided. Over 95 percent of these are still undergoing significant action, with many foreign collectors already identified, isolated, diverted, or otherwise thwarted.

Foreign collectors do not constitute a miasma. Their efforts to infiltrate the cleared industrial base and sap our strength are instead comprehensible and can be thwarted, but only through a team effort among cleared contractors, DSS, and intelligence and law enforcement partners. Constant and better-attuned vigilance, smarter methods and defenses, and increased and improved mutual support can help our cleared industrial base keep our country strong, healthy, and secure.