Working Paper: NBER ID: w16993
Authors: Ralf Meisenzahl; Joel Mokyr
Abstract: During the Industrial Revolution technological progress and innovation became the main drivers of economic growth. But why was Britain the technological leader? We argue that one hitherto little recognized British advantage was the supply of highly skilled, mechanically able craftsmen who were able to adapt, implement, improve, and tweak new technologies and who provided the micro inventions necessary to make macro inventions highly productive and remunerative. Using a sample of 759 of these mechanics and engineers, we study the incentives and institutions that facilitated the high rate of inventive activity during the Industrial Revolution. First, apprenticeship was the dominant form of skill formation. Formal education played only a minor role. Second, many skilled workmen relied on secrecy and first-mover advantages to reap the benefits of their innovations. Over 40 percent of the sample here never took out a patent. Third, skilled workmen in Britain often published their work and engaged in debates over contemporary technological and social questions. In short, they were affected by the Enlightenment culture. Finally, patterns differ for the textile sector; therefore, any inferences from textiles about the whole economy are likely to be misleading.
Keywords: Industrial Revolution; Technological Innovation; Skilled Labor; Apprenticeship System
JEL Codes: N13; N73; O31; O34; O43
Edges that are evidenced by causal inference methods are in orange, and the rest are in light blue.
| Cause | Effect |
|---|---|
| availability of skilled craftsmen (N63) | increased rates of innovation (O35) |
| apprenticeship system (J24) | competent workers (J24) |
| competent workers (J24) | rate of technological progress (O33) |
| reliance on secrecy and first-mover advantages (D82) | competitive edge in innovation (O36) |
| skilled workers (J24) | alternative mechanisms (reputation effects and first-mover advantages) (L14) |
| apprenticeship system (J24) | increased rates of innovation (O35) |
| cultural context of the Enlightenment (B12) | increased rates of innovation (O35) |