How can companies combat increased risk of espionage by Jolito Ortizo Padilla

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James Bond, John Le Caree and the cold war are the associations that still most often spring to mind when spies are discussed. But these days it seems as if agents are more commonly to be found snooping around industrial estates and office complexes, hunting out the latest product innovations and befriending those key executives with access to critical information.

Reports that Chinese industrial espionage ring stole details of Renault's electric vehicle technology hit the news at the start of the year. On January 3, the automotive manufacturer suspended three executives on suspicion of involvement in passing on sensitive commercial information. On 13 January the carmaker filed a criminal complaint of "organized industrial espionage, corruption, breach of trust, theft and concealment." As I write the executives have been dismissed from their posts, despite denying any involvement. They now   take Renault to tribunal.

The French media have pointed the finger at China, amid reports alleging that a leading Chinese electricity company paid a large sum of money into accounts held by the accused executives outside France. Meanwhile the French government and Renault are trying to avert a standoff with Beijing, with French finance minister Christine Lagarde insisting that no assumption should be made on how the information was passed on and which country was involved.

This is unsurprising given that China is an important export market for France. As recently, when Chinese President Hu Jintao visited France, President Sarkozy clinched a 16bn Euro deal to sell aircraft and uranium fuel for nuclear power plants to China.

Similarly , with the Chinese market at stake, Renault has also played down its criminal complaint , which did not name the people or organizations accused of spying, talking instead of "persons unknown". Renault followed up a statement saying " to ensure that the judicial procedure is carried out in the calmest possible conditions, Renault will not take part in any controversy".

The case has shaken France. In its wake , a bill has been submitted to parliament to tighten protection of corporate information. This is felt to be long overdue by many , as compared with other industrial powers such as the US and Japan. France has lagged behind in protecting its companies from unwelcome attention of foreign competitors and nations.

We might ask ourselves whether this case is a sign of times and reflects increasing economic competition as business continues to globalise. Speaking to Reuters , Ian Bremmer, president of political risk consultancy Eurasia Group, certainly agrees that the battle is on.

He said:" It's not going to be so much a matter of bombs and missiles as deniable cyber warfare , corporate espionage and economic struggles. That's going to be particularly difficult environment for western corporates."

So how companies combat the increased risk of espionage? Many are turning to the government assistance, as is the case in France , particularly as businesses in emerging economies race to reduce the technology gap between their operations and those of western companies.

After all, huge amounts of money and the future of the organizations in question may be at stake. In the case of Renault and its partner Nissan 4bn Euros are being invested to ensure a place as market leader when electric vehicles become a mass market Allowing the competition to learn technical secrets would mean a huge loss of advantage. And this is even more of an issue in industries with long research and development lead time such as the automotive and pharmacuetical sector.

But aside from legislation, how else can organizations protect themselves from this kind of clandestine activity? One key area where quality professionals may be able to help is information security. Ensuring that a rubost system is in place with good security protocols should help to reduce the chances of a problem. In addition , the creation of a culture where employees feel a loyalty to its organization and its product can help. Ultimately though, there is only so much that companies can do, particularly in this digital age where every mobile phone is potential camera and bugging device.