Cover: The Economic Costs and Implications of High-Technology Hardware Theft

The Economic Costs and Implications of High-Technology Hardware Theft

Published 1999

by James N. Dertouzos, Eric V. Larson, Patricia A. Ebener

Download

Download eBook for Free

FormatFile SizeNotes
PDF file 4.7 MB

Use Adobe Acrobat Reader version 10 or higher for the best experience.

Purchase

Purchase Print Copy

 Format Price
Add to Cart Paperback84 pages $25.00

This report presents the results of a study undertaken at the request of the American Electronics Association and a consortium of high-tech industries. Based on a nine-month survey of 95 firms, representing approximately 40 percent of the sales volume for the computer, semiconductor, hard disk drive, and cellular telephone industries, the authors estimate that direct costs of hardware theft are almost $250 million. Indirect costs (such as lost sales and expensive theft-reduction strategies) and industry losses could push total losses past $5 billion. Industry and consumers share the price of high-tech losses, but firms do not always have the economic incentive to invest in appropriate security measures. Since 1996, hardware theft has declined significantly, and recent security measures adopted by individual firms appear to be very cost-effective. The authors recommend more such investments and suggest that the largest payoff will come from anticipating what products are most vulnerable and devising targeted procedures to protect them. In addition, they recommend strengthening collaborative industry-law enforcement efforts to help track the threat, anticipate targets, and identify and disable stolen property.

This report is part of the RAND monograph report series. The monograph/report was a product of RAND from 1993 to 2003. RAND monograph/reports presented major research findings that addressed the challenges facing the public and private sectors. They included executive summaries, technical documentation, and synthesis pieces.

This document and trademark(s) contained herein are protected by law. This representation of RAND intellectual property is provided for noncommercial use only. Unauthorized posting of this publication online is prohibited; linking directly to this product page is encouraged. Permission is required from RAND to reproduce, or reuse in another form, any of its research documents for commercial purposes. For information on reprint and reuse permissions, please visit www.rand.org/pubs/permissions.

RAND is a nonprofit institution that helps improve policy and decisionmaking through research and analysis. RAND's publications do not necessarily reflect the opinions of its research clients and sponsors.