• technological innovation

The word innovation raises a problem of great importance in the history of technology. Strictly, an innovation is something entirely new, but there is no such thing as an unprecedented technological innovation because it is impossible for an inventor to work in a vacuum and, however ingenious his invention, it must arise out of his own previous experience. The task of distinguishing an element of novelty in an invention remains a problem of patent law down to the present day, but the problem is made relatively easy by the possession of full documentary records covering previous inventions in many countries. For the millennium of the Middle Ages, however, few such records exist, and it is frequently difficult to explain how particular innovations were introduced to western Europe. The problem is especially perplexing because it is known that many inventions of the period had been developed independently and previously in other civilizations, and it is sometimes difficult if not impossible to know whether something is spontaneous innovation or an invention that had been transmitted by some as yet undiscovered route from those who had originated it in other societies.

The problem is important because it generates a conflict of interpretations about the transmission of technology. On the one hand there is the theory of the diffusionists, according to which all innovation has moved westward from the long-established civilizations of the ancient world, with Egypt and Mesopotamia as the two favorite candidates for the ultimate source of the process. On the other hand is the theory of spontaneous innovation, according to which the primary determinant of technological innovation is social need. Scholarship is as yet unable to solve the problem so far as technological advances of the Middle Ages are concerned because much information is missing. But it does seem likely that at least some of the key inventions of the period—the windmill and gunpowder are good examples—were developed spontaneously. It is quite certain, however, that others, such as silk working, were transmitted to the West, and, however original the contribution of Western civilization to technological innovation, there can be no doubt at all that in its early centuries at least it looked to the East for ideas and inspiration.

Industrial Revolution

In modern history, the process of change from an agrarian, handicraft economy to one dominated by industry and machine manufacture. This process began in England in the 18th century and from there spread to other parts of the world. Although used earlier by French writers, the term Industrial Revolution was first popularized by the English economic historian Arnold Toynbee (1852–83) to describe England’s economic development from 1760 to 1840. Since Toynbee's time the term has been more broadly applied.

The main features involved in the Industrial Revolution were technological, socioeconomic, and cultural. The technological changes included the following: (1) the use of new basic materials, chiefly iron and steel, (2) the use of new energy sources, including both fuels and motive power, such as coal, the steam engine, electricity, petroleum, and the internal-combustion engine, (3) the invention of new machines, such as the spinning jenny and the power loom that permitted increased production with a smaller expenditure of human energy, (4) a new organization of work known as the factory system, which entailed increased division of labor and specialization of function, (5) important developments in transportation and communication, including the steam locomotive, steamship, automobile, airplane, telegraph, and radio, and (6) the increasing application of science to industry. These technological changes made possible a tremendously increased use of natural resources and the mass production of manufactured goods.

There were also many new developments in non-industrial spheres, including the following: (1) agricultural improvements that made possible the provision of food for a larger nonagricultural population, (2) economic changes that resulted in a wider distribution of wealth, the decline of land as a source of wealth in the face of rising industrial production, and increased international trade, (3) political changes reflecting the shift in economic power, as well as new state policies corresponding to the needs of an industrialized society, (4) sweeping social changes, including the growth of cities, the development of working-class movements, and the emergence of new patterns of authority, and (5) cultural transformations of a broad order. The worker acquired new and distinctive skills, and his relation to his task shifted; instead of being a craftsman working with hand tools, he became a machine operator, subject to factory discipline. Finally, there was a psychological change: man's confidence in his ability to use resources and to master nature was heightened.

• The First Industrial Revolution.

In the period from 1760 to 1830 the Industrial Revolution was largely confined to Britain. Aware of their head start, the British forbade the export of machinery, skilled workers, and manufacturing techniques. The British monopoly could not last forever, especially since some Britons saw profitable industrial opportunities abroad, while continental European businessmen sought to lure British know-how to their countries. Two Englishmen, William and John Cockerill, brought the Industrial Revolution to Belgium by developing machine shops at Liège (c. 1807), and Belgium became the first country in continental Europe to be transformed economically. Like its English progenitor, the Belgian Industrial Revolution centered in iron, coal, and textiles.

France was more slowly and less thoroughly industrialized than either Britain or Belgium. While Britain was establishing its industrial leadership, France was immersed in its Revolution, and the uncertain political situation discouraged large investments in industrial innovations. By 1848 France had become an industrial power, but, despite great growth under the Second Empire, it remained behind England.

Other European countries lagged far behind. Their bourgeoisie lacked the wealth, power, and opportunities of their British, French, and Belgian counterparts. Political conditions in the other nations also hindered industrial expansion. Germany, for example, despite vast resources of coal and iron, did not begin its industrial expansion until after national unity was achieved in 1870. Once begun, Germany's industrial production grew so rapidly that by the turn of the century that nation was out-producing Britain in steel and had become the world leader in the chemical industries. The rise of U.S. industrial power in the 19th and 20th centuries also far outstripped European efforts. And Japan too joined the Industrial Revolution with striking success.

The eastern European countries were behind early in the 20th century. It was not until the five-year plans that the Soviet Union became a major industrial power, telescoping into a few decades the industrialization that had taken a century and a half in Britain. The mid-20th century witnessed the spread of the Industrial Revolution into hitherto non-industrialized areas such as China and India.

• The Second Industrial Revolution

Despite considerable overlapping with the “old,” there is mounting evidence for a “new” Industrial Revolution in the late 19th and 20th centuries. In terms of basic materials, modern industry has begun to exploit many natural and synthetic resources not hitherto utilized: lighter metals, new alloys, and synthetic products such as plastics, as well as new energy sources. Combined with these are developments in machines, tools, and computers that have given rise to the automatic factory. Although some segments of industry were almost completely mechanized in the early to mid-19th century, automatic operation, as distinct from the assembly line, first achieved major significance in the second half of the 20th century.

Ownership of the means of production also underwent changes. The oligarchical ownership of the means of production that characterized the Industrial Revolution in the early to mid-19th century gave way to a wider distribution of ownership through purchase of common stocks by individuals and by institutions such as insurance companies. In the 20th century, many countries of Europe socialized basic sectors of their economies. There was also a change in political theories: instead of the laissez-faire ideas that dominated the economic and social thought of the classical Industrial Revolution, governments generally moved into the social and economic realm to meet the needs of their more complex industrial societies.

• information technology: please refer to the previous unit, Unit 11.

value chain

The chain of activities by which a company buys in materials, creates a good or service, markets it, and provides services after a sale is made. Each step creates more value for the consumer.

The principle underlying the value-chain concept is that a company should examine its costs and performance at each stage, while always seeking improvement. It should also attempt to understand its competitors’ costs and performance, using these as a benchmark for its own efforts. By analyzing the value added by each activity, the company can analyze the sources of its competitive advantage.

supply chain

A series of linked stages in a supply network along which a particular set of goods or services flows.

invisible hand

Adam Smith believed that society was such that, although individuals pursued their own advantage, the greatest benefit to society as a whole was achieved by their being free to do so. Each individual was “led by an invisible hand to promote an end which was no part of his intention”.