Write a 750-800 word essay answering "What is the link between the Scientific Revolution and modern economic growth?  (hint: first define and discuss the Scientific Revolution, then discuss the connections between it and the First and Second Industrial Revolutions)." Use the following information when necessary to help answer the question: "Science, Technology and Growth
Modern economic growth is driven by technological change.
Technological growth in the preindustrial period was slow.
Technological improvements in a Malthusian world led to population
growth rather than higher income per capita.
The breakthrough from Malthusian to modern economic growth was
associated with the technological innovations of the Industrial
Revolution period (1750–1850).
Why was technological progress slow before 1750? Why did it
accelerate after 1750?
Why are some societies technologically innovative and others not?
2 / 1
Innovation in Growth Theory
In growth theory innovation is the key to long-run growth.
Solow (1957) showed that only 2/3 of modern economic growth can
be explained via capital accumulation.
In the long run only technological progress can support continuous
growth because it alone does not run into diminishing returns
Endogenous growth theory (Romer 1986, 1990) is concerned with
explaining why innovation takes place.
But R&D based models of growth cannot explain the original onset of
growth because modern directed R&D is a 20th century phenomenon.
Things were different in the past . . .
3 / 1
In 1605, Francis Bacon first proposed that scientific advance could
improve technology and raise the standard of living:
In 1605, Francis Bacon first proposed that scientific advance could
improve technology and raise the standard of living:
Scientific
discovery
Technological
improvements
Economic
growth
But as Clark (2007) notes innovations up until 1600 had not
brought sustained and permanent increases in living standards.
Innovations were sporadic and not cumulative. Gains from new
technology were ‘caught up’ by Malthusian factors.
But as Clark (2007) notes innovations up until 1600 had not brought
sustained and permanent increases in living standards.
Innovations were sporadic and not cumulative. Gains from new
technology were ‘caught up’ by Malthusian factors.
4 / 1
Changes in Technology
The real income in Malthusian economies was determined from the birth rate
and death rate schedules alone. Once this income was determined the popu-
lation size depended just on how many people could be supported at this in-
come level given the land area and technology of the society. For each soci-
ety, depending on the land area and the production technology, there was a
schedule connecting each population level with a given real income level.
This is called the
technology schedule,
because the major cause of changes in
this schedule has been technological advance. But other factors could also
shift this schedule: the availability of more capital, improved trade possibili-
ties, climate changes, or better economic institutions.
Figure
2
.
5
shows the path of adjustment from an isolated improvement in
technology: a switch from an inferior technology, represented by curve
T
0
, to
a superior technology, represented by curve
T
1
. Since population can change
only slowly, the short-run effect of a technological improvement was an in-
       

Figure

.

Effects of isolated technological advance.
Income per person
y
*
y
*
N
1
*
N
0
*
Population Birth rate, death rate
Death rate
Birth rate
5 / 1
Antiquity
Romans and Greeks had a sophisticated understanding of engineering, ship
building, and glasswork but Moykr (1990) argued that they do not seem to
be especially technologically innovative.
1
For example Rome was a literate society with good glass workers and
the idea of manipulating light was understood yet they never invented
spectacles.
2
Romans invented waterwheels but did not use them on a widespread
basis.
3
It is a puzzle why literate and sophisticated societies did not apply
their knowledge for economic purposes.
6 / 1
Antiquity
Ctesibius’ water clock, as
visualized by the 17th-century
French architect Claude
Perrault
7 / 1
The Antikythera Mechanism (c. 205 BCE)
A Modern reconstruction.
8 / 1
Medieval Windmills
Medieval Windmills
9 / 1
Technological Developments were gradual
1
Galen (c. 200 AD) remained the leading authority in medicine until
1500.
2
Aristotle (d. 323 BC) remained dominant in the natural sciences.
3
Mechanical cloaks and the compass appear around 1300 and were
gradually improved.
4
Spectacles were invented in the 13th and rapidly spread prolonging
the value of human capital.
5
Gun power weapons appear around 1250 although they were not
decisive in warfare until 1450 at the earliest.
Europe was behind the Middle East and China technologically throughout
most of the middle ages.
However, by 1500 Europe was no longer a backwater (Mokyr, 1990).
10 / 1
Macro and Microinventions
Mokyr’s
Lever of Riches
: (1990):
Macroinventions
examples: printing press, compass, stream engine,
personal computer.
Microinventions
examples: learning-by-doing and cost-saving innovations
that improved inventions such as the bicycle or the telephone.
Many of Leonardo’s ideas could have worked in theory but were not
developed because of the limited tools available, e.g., telescopes required
workers skilled in making optics.
Macroinventions can also be thought of as general purpose technologies.
Both micro and macro inventions are crucial otherwise innovation runs
into bottlenecks.
11 / 1
Leonardo’s Helicopter
12 / 1
From the Scientific Revolution to the Industrial Revolution
Previous Lecture: how does one get from the Scientific Revolution to
the Industrial Revolution?
Why was the Industrial Revolution British, if the Scientific Revolution
was pan-European?
Mokyr (2009) argues that two reasons were important:
1
Britain had a large number of highly skilled mechanics and “tinkers”
who were able to design and improve new machines.
2
British engineers and mechanics interacted with scientists and inventors
and possessed a shared culture. This is the Industrial Enlightenment
2 / 39
From Scientific Revolution to Industrial Revolution
The Scientific Revolution was pan-European. The Industrial
Revolution took place in Britain.
What is the link between the Scientific Revolution and the Industrial
Revolution?
Why then was this link strongest in Britain?
3 / 39
Science, Technology and Growth
The Scientific Revolution did not immediately led to economically
useful innovations.
The Scientific Revolution was a European-wide phenomenon. Yet the
industrial revolution was British.
During the period 1500–1750 technology was becoming more
important yet technological breakthroughs were still not occurring at
a fast enough rate to materially affect living standards very much.
Mokyr (2002) argues that the key development was the ‘industrial
enlightenment’ which bridged the world of science with the world of
practical innovations.
4 / 39
Goldstone (2002)
The new science that would be the
essential foundation for mod-
ern growth
was being developed in the sixteenth and seventeenth
centuries, in the work of Bacon, Copernicus, Galileo, Kepler, Tor-
ricelli, Pascal, Boyle, Descartes, and Newton. Yet at that point,
it had no relevance to economics, and both Holland’s golden age
and the neo-Malthusian difficulties of the rest of Europe and Asia
were normal pre- industrial patterns. In the late seventeenth and
eighteenth centuries, scientific knowledge begins to spread, and in-
dividual entrepreneurs and artisans who mix with the lecturers and
demonstrators of the new natural philosophy start to experiment
with machines that will put the new ideas to useful work
5 / 39
Goldstone (2002)
The science behind the stream engine was pan-European.
However, in Britain a particular engineering culture emerge:
This is in large measure because the development of scientific
culture took a particular turn in Britain, taking off from the general
European innovation in the seventeenth century of a certain way
of seeing the world—seeing with “engines” or “engine science.”
This led to the gradual development of steam engines over the course
of the 18th c.
This argument is developed in more detail by Joel Mokyr (2009).
6 / 39
The Industrial Enlightenment
According to Mokyr (2009) the Enlightenment:
changed how people thought about the nature of the growth of
knowledge and disseminated these ideas widely;
triggered institutional change and changed the political environment
of economic activity;
and helped solved the Baconian problem by lowering the assess costs
to knowledge and making best-practice knowledge widely available to
those who needed it.
7 / 39
The Industrial Enlightenment
According to Mokyr (2009) the Enlightenment:
changed how people thought about the nature of the growth of
knowledge and disseminated these ideas widely;
triggered institutional change and changed the political environment
of economic activity;
and helped solved the Baconian problem by lowering the assess costs
to knowledge and making best-practice knowledge widely available to
those who needed it.
7 / 39
The Industrial Enlightenment
According to Mokyr (2009) the Enlightenment:
changed how people thought about the nature of the growth of
knowledge and disseminated these ideas widely;
triggered institutional change and changed the political environment
of economic activity;
and helped solved the Baconian problem by lowering the assess costs
to knowledge and making best-practice knowledge widely available to
those who needed it.
7 / 39
The Industrial Enlightenment
According to Mokyr (2009) the Enlightenment:
changed how people thought about the nature of the growth of
knowledge and disseminated these ideas widely;
triggered institutional change and changed the political environment
of economic activity;
and helped solved the Baconian problem by lowering the assess costs
to knowledge and making best-practice knowledge widely available to
those who needed it.
7 / 39
The Industrial Enlightenment
According to Mokyr (2009) this development occurred in Britain because:
Britain had high human capital — not as measured by literacy but as
measured by skills. It had a population of tinkers.
This high human capital was a product of prior economic
development (Smithian growth), trade, institutions.
There was a developed civil society which meant there were links
between scientists, engineers, and tinkers/workers.
There was a market economy in which individuals could rise on the
basis of commercial success.
8 / 39
The experimental method
The Scientific Revolution provided a framework for scientists and
engineers to think about problems.
Knowledge was widely disseminated.
The importance of testable experiments was established.
This meant that as engineers and inventors improved their machinery
they had a body of knowledge to draw upon.
Hence in the long-run the Scientific Revolution prevented the wave of
inventions associated with the industrial revolution period from
petering out.
9 / 39
Mokyr, Intellectual Origins of Modern Growth
Delves into the intellectual underpinnings of the Industrial Revolution and its transformation into sustained economic growth starting in the early nineteenth century. Mokyr argues that this transformation was rooted in the seventeenth-century Baconian program, which aimed to expand useful knowledge and apply natural philosophy to technological problems. He emphasizes the pivotal role of the Enlightenment in institutionalizing and disseminating this knowledge, making it accessible to those who could best utilize it.

Mokyr discusses how, before 1800, economic growth was not new but underwent a qualitative change after the Industrial Revolution. This change was characterized by the diffusion of technological innovations, institutional reforms, and fresh ideas. He argues that modern economic growth differed from earlier forms because it was more rapid, widespread, and sustainable. This change was partly due to the Enlightenment's emphasis on the acquisition, specialization, professionalization, and application of knowledge in production, which became the primary driver of Western economic growth over the past centuries.

The document also explores the interaction between science and technology, noting that significant advances in science often came too late to influence the industrial changes of the late eighteenth century. However, the eighteenth century saw a burgeoning interest in applying useful knowledge to the arts, crafts, and agriculture. Despite the initial lack of direct scientific contribution to technological advances, Mokyr highlights that the era's technological progress was not independent of intellectual developments.

Mokyr goes on to examine the decline in access costs to knowledge in the century before the Industrial Revolution, citing the emergence of scientific and technical magazines across Europe as crucial in reducing these costs. He argues that the spread of technical knowledge during the Industrial Revolution was an elite process, driven by a small group of trained engineers, able mechanics, and skilled craftsmen.

In conclusion, Mokyr’s analysis presents the Industrial Revolution as a culmination of intellectual and cultural shifts that began in the seventeenth century, with the Enlightenment playing a central role in fostering an environment conducive to the generation, diffusion, and application of useful knowledge, which in turn spurred sustained economic growth.

Mokyr, Culture of Growth Princeton Chapters 10, 11, and 12
The main argument of Joel Mokyr's "A Culture of Growth: The Origins of the Modern Economy" revolves around the profound impact of culture on economic development, specifically in the context of Europe between 1500 and 1700. Mokyr posits that during this period, significant cultural shifts occurred, laying the foundational attitudes and values that would eventually fuel modern economic growth.

He argues that these cultural changes played a pivotal role in shaping the technological advancements and innovations that characterized the Industrial Revolution and subsequent economic development. The book delves into the relationship between culture, as defined by a set of beliefs, values, and preferences, and economic history. Mokyr examines how culture influenced technological progress, not just through direct shifts in attitudes toward the natural world, but also indirectly by fostering institutions that encouraged the accumulation and dissemination of "useful knowledge."

The book also explores the interplay between culture and institutions, suggesting that while institutions shape the environment for cultural evolution, they are themselves influenced by underlying cultural beliefs. This reciprocal relationship is key to understanding how certain societies developed economically while others did not. Mokyr further elaborates on how beliefs about nature and technology, driven by cultural shifts, were fundamental to the surge in technological creativity and innovation in Europe.

"A Culture of Growth" thus offers a comprehensive analysis of how culture, in its various dimensions, played a crucial role in setting the stage for the economic transformations that led to the modern economy. The book presents a compelling argument that cultural factors, particularly in their interaction with institutions, were instrumental in the emergence and spread of economic growth and technological innovation.

12: Industrial Revolution (November 14)
Ch 9 Koyama, How the World Became Rich
By 1700, northwestern Europe, particularly Britain, had established many necessary preconditions for sustained economic growth. This included high per capita incomes and real wages, well-developed and extensive markets, and an institutional framework that supported the expansion of internal trade. Furthermore, state institutions were robust enough to ensure law and order and internal peace.
The chapter uses the example of the Dutch Republic to illustrate that while these factors were crucial, they alone were not sufficient for modern economic growth. The Dutch Republic, often termed as the first modern economy, showed patterns of growth that were more akin to temporary growth episodes rather than the sustained economic growth seen in Western Europe and North America after 1800.
In the 18th century, the Dutch Republic remained wealthy, but its economy did not undergo further rapid growth due to various factors. These included rising inequality, political power consolidation by merchant elites in Amsterdam, benefits of institutions like the Dutch East India Company (VOC) being limited to a few shareholders, high taxes, high government debt due to wars against the French, and failure to invest further in fiscal capacity. These factors contributed to the Dutch Republic following a pattern similar to Italian city-states like Florence and Venice, which experienced initial wealth from trade but eventually stagnated.
Despite being at the forefront of the Scientific Revolution with significant contributions in various fields, the Dutch Republic did not witness the combination of industrial growth and structural change that characterized Britain's Industrial Revolution.
Britain, however, experienced this combination in the 18th and 19th centuries, leading to the first modern economy characterized by sustained economic growth without reversals. The chapter notes that Britain had essential institutional preconditions, including a limited and representative government. However, these alone were not enough to explain its prosperity, as evidenced by the Dutch Republic's experience. The chapter concludes with the intention to explore further what additional factors were necessary for Britain's prosperity in the following chapters.
Allen, British Industrial Revolution in a Global Perspective

Allen, High wage economy and the industrial revolution: a Restatement
The document is a detailed analysis by Robert C. Allen on the high wage economy in 18th-century Britain and its role in the Industrial Revolution. Allen addresses critiques of his assessment, providing new evidence that women and children were part of the high wage economy. He argues that the profitability of using spinning machinery increased around 1700 due to higher wages, especially for women, which contributed significantly to the onset of the Industrial Revolution. Additionally, the paper examines the relationship between the high wage economy and the subsequent inequality and poverty in 19th-century Britain. Allen's work emphasizes a global perspective, comparing Britain's economic conditions with other countries, to understand the unique factors leading to the Industrial Revolution in Britain.
The relationship between the high wage economy and the subsequent inequality and poverty in 19th-century Britain, as analyzed in Robert C. Allen's work, involves the dynamics of economic shifts following the Industrial Revolution. Allen suggests that the high wage economy, which contributed to the onset of the Industrial Revolution, also led to changes in labor and economic structures. These changes eventually resulted in increased inequality and poverty, as the economic benefits were not uniformly distributed across society. The transition from a high wage economy to industrial capitalism created disparities, impacting various social classes differently.

Moykr, The Lever of Riches Chapters 5 and 10
Chapter 5:
It discusses the Industrial Revolution, focusing on Europe's technological advancement and its global impact. Key points include:
1. European Technological Superiority (1750 onwards): This segment explores Europe's technological advancements from 1750, emphasizing how Britain led the way. It discusses factors like the scientific revolution, institutional structures, and the fostering environment for innovation.

2. The Industrial Revolution's Conceptualization: The chapter presents varying perspectives on defining the Industrial Revolution, debating its nature as an economic phenomenon or a technological leap.

3. Role of Technology: This part underlines the critical role of technological innovation in driving the Industrial Revolution, transforming manufacturing processes and labor productivity.

4. Impact of Patenting: The text highlights the significant increase in patent registrations as a measure of heightened technological creativity, particularly in Britain, illustrating the burgeoning culture of innovation.

5. Technological Developments: It details breakthrough inventions such as the steam engine, and significant progress in metallurgy, illustrating how these advances revolutionized industries.

6. Individual Contributions: The chapter recognizes key inventors like James Watt, showcasing how their contributions were instrumental in technological advancements.

7. Economic and Global Implications: Lastly, it explores the wider economic impacts of these technological advancements, including Europe's rising global influence in technology and trade.

Chapter 10:
It focuses on the Industrial Revolution, particularly Britain's technological leadership during this period and its eventual decline. The author explores why Britain initially led in generating and diffusing superior production techniques, examining factors like technological innovation, skilled labor, and market conditions. Mokyr also discusses the role of the political and social environment in fostering or hindering technological progress. He delves into the diffusion of technological advances within Europe, the impact of political events like the French Revolution, and the role of patent laws in promoting or obstructing innovation. 
The author explores the diffusion of technological advancements across Europe, highlighting the varied impacts of political and social contexts. The French Revolution had a significant impact on technological progress in several ways. Firstly, it disrupted traditional social and economic structures, paving the way for new ideas and innovations. The chaos and changes brought by the revolution also led to a greater focus on technologies that could aid in military and nationalistic endeavors. Furthermore, the revolution influenced intellectual thought across Europe, promoting ideals of progress and rational thinking that were conducive to scientific and technological advancements. However, the political turmoil also caused interruptions and setbacks in some areas of technological development.
The role of patent laws is also examined, as they played a dual role: on one hand, they incentivized innovation by protecting inventors' rights, but on the other, they could also stifle broader dissemination and improvement of technologies. The chapter comprehensively analyzes these and other factors that not only underscored Britain's initial technological dominance but also facilitated the eventual shift of leadership to other European nations as they adopted and adapted these technological advancements. The chapter analyzes various elements contributing to Britain's technological pre-eminence and the eventual shift of leadership to other European nations.
Social and political factors influencing technological change:
1. Political Stability: Stable governance in Britain provided a secure environment for investments and innovation. This contrasted with countries experiencing political turmoil where such activities were riskier.

2. Economic Policies: Britain's liberal economic policies, including support for free trade, allowed for the efficient allocation of resources and fostered a competitive market environment, stimulating technological advancements.

3. Patent System: The effective patent system in Britain encouraged inventors by protecting their rights, thus motivating them to innovate."

4. Social Attitudes: The prevailing social attitudes towards science and technology were crucial. In Britain, there was a strong culture of scientific inquiry and respect for practical knowledge, which supported technological endeavors.

5. Resistance to Change: In other regions, social resistance to technological change, often due to concerns about job loss or cultural impacts, hindered the adoption of new technologies.

6. Educational Systems: The level and nature of education also played a role. Societies with better educational systems, particularly those emphasizing scientific and technical knowledge, were more conducive to technological progress.