However, the pattern observed in figure 2 suggests that there were distinct regional differences. In the following section, we provide evidence that the incentives were greater in places with stronger potential trade links to Baden. In the nineteenth century, product markets were less integrated than in modern times, due to relatively high transport costs.
Since transport costs increase with distance, trade links between regions that are close to each other are typically stronger. If the decision to file a patent was influenced by existing trade links, we propose that foreign patenting activity was also greater in regions that were close to Baden. The gravity model explains foreign patenting using two main factors: the distance between the foreigner's place of residence and Karlsruhe the capital of Baden , and the size of the city from which the foreign patent originates.
While distance is a general proxy for transaction and transport costs, city size is a proxy for the potential to create technologies that can be patented and, consequently, transferred through foreign patenting. We expect a negative effect of distance on patenting and a positive effect of foreign city size, as in the case of models that analyse trade in goods. These data are frequently used in economic history. They include population figures for more than 2, European cities for selected years up to In order to merge population with patent data, we drop all places for which no population figures are available.
The final sample includes data for 1, European cities. To test the effect of distance and city size on the likelihood that we observe at least one patent, we use a logit model that takes the following form: 2 Patent takes a value of 1 if we observe at least one patent between and , and a value of 0 otherwise. Table 6 reports the results of the logit regression. In column 1 of table 6 , we find a negative effect for Distance and a positive effect for City population Statistically, both coefficients are highly significant.
To get a better understanding of the economic significance, we can express the estimated coefficients in odds ratios, which is a common method when using logit models. We compute an odds ratio of about 0. The odds ratio for the effect of City population is about 1. The odds ratios thus suggest that the effects are not only statistically significant, but also relevant with regard to their economic magnitude. Other factors may have affected the likelihood of an inventor filing a patent in Baden.
In column 2 of table 6 , we account for such factors by including additional control variables. First, we account for differences in the potential for generating patentable inventions that are not captured by city size: City population growth measures the growth of the city population between and and University Technical university indicates the presence of a university technical university. Third, we include further geographic controls: Coast indicates whether the city was located on the coast and Latitude Longitude indicates the geographic latitude longitude of the city.
The results in column 2 show that the effects of Distance and City population remain highly significant and the magnitudes of the coefficients change only slightly. The control variables have no significant effects, except City population growth and Latitude. The positive and significant effect of City population growth suggests that the likelihood of observing a patent is higher for cities that had grown faster in the past.
This finding is not surprising, since we would expect more inventive activity in dynamic cities than in stagnating ones. We also find a positive and significant effect for Latitude , which means that the likelihood of observing a patent is on average higher for cities in the north than in the south of Europe. This north—south disparity reflects the general picture of industrialization in Europe.
Columns 3 to 6 of table 6 underline the robustness of our results. In column 3, we restrict the sample to cities with more than 10, inhabitants, in column 4 we restrict the data to cities located in the more developed core of Europe Belgium, France, the German states, the Netherlands, Switzerland, and the UK. Both columns show similar regression results. The estimated coefficients of Distance and City population continue to be highly significant in both specifications, while the magnitudes remain in a similar range. In column 3, the estimated coefficient for Distance becomes even higher than in the previous specifications.
Finally, we show in column 5 that the results are robust when including only cities where at least one patent was filed in the period between and , and the results in column 6 indicate that this also holds for the period to We report the estimated coefficients of the OLS regressions in online app. The estimated coefficients presented in table 6 show the negative effect of the distance to Baden on the likelihood that we observe at least one patent. In the following, we test whether we find a similar result for the number of patents relative to city population.
Imperialism, Revolution, and Industrialization in 19th-Century Europe
In doing so, we estimate an ordinary least squares OLS model that takes the following form: 3 Patents per capita is the total number of patents filed between and divided by city population in Table 7 summarizes the results of the OLS regression. In column 1 of table 7 , we find a negative and highly significant effect of Distance on Patents per capita. This result shows that the effect is not only statistically significant, but also economically relevant.
For Distance , we find coefficients of similar magnitude in column 2, where we include additional variables as in the logit model see description above , and in column 3, where we restrict the sample to cities with more than 10, inhabitants in The estimated coefficient of Distance is much larger in column 4, where we only include cities in the industrialized core of Europe.
Finally, we also find a negative and significant effect of Distance in columns 5 and 6, where we include separately the number of patents filed in the periods —70 and —7. The regression results show that patent intensity is negatively correlated with distance. We interpret this as evidence that foreign inventors had on average stronger incentives to file patents in Baden if they were located in places that were integrated more closely with Baden's economy. To put it differently, the regression results suggest a strong link between market integration and technology transfer through patents.
The most obvious explanation for this empirical finding is that foreign inventors wanted to protect their inventions in a promising export market to avoid the risk of imitation by local competitors. This rationale can be illustrated by the behaviour of Swiss and Alsatian manufacturers. Since Baden pursued a liberal policy in granting trading licences to foreigners, it was an attractive market for foreign direct investment.
Swiss and Alsatian entrepreneurs took advantage of this policy by establishing new textile factories in Baden. The fact that we observe a large number of textile patents from Switzerland and Alsace suggests that these entrepreneurs wanted to protect their intellectual property to reduce the risk of imitation by local producers. In the following section, we discuss Baden's potential to imitate foreign technologies in more detail. The available data allow us to measure Baden's potential to imitate foreign technologies in two ways. First, we test whether foreigners received patents in those technology groups in which domestic innovators also excelled, by computing the Spearman rank correlation coefficient based on the shares of patents by technology group.
Column 1 of table 8 reports the coefficients for the rank correlation between the different groups of patentees domestic, other German states, other countries. We compute a rank correlation coefficient of 0. The high correlation coefficients suggest similar patenting behaviour for domestic and foreign inventors. We interpret this as evidence that foreign patenting was driven by the fear of imitation. Second, we test whether there is a correlation between the composition of the manufacturing sector in Baden and the share of foreign patents that we assign to these industries.
We measure the composition of the manufacturing sector with employment shares. The likelihood of a foreign inventor applying for patent protection in Baden should be higher in industries that accounted for a high share of the workforce in Baden, since a higher share of the workforce should also indicate a higher potential for imitation. We compute a coefficient of 0. The latter argument is supported by the fact that a high proportion of the German patentees for whom occupations are known can be classified as factory owners.
Textile manufacture during the British Industrial Revolution - Wikipedia
Factors such as the local availability of skilled workers and the presence of natural resources could affect the direction of technical change, which should in turn be reflected in the patents that were filed in Baden. To put it differently, the distribution of patents by technology should reflect the composition of the manufacturing sector in the inventor's country of origin, assuming that industries with a higher employment share produce on average more patented inventions.
Due to data availability, we restrict the analysis to all German territories for which the Zollverein survey of provides information. The results, presented in table 9 , are mixed. We observe a high and significant Spearman rank correlation coefficient of 0. For the Kingdom of Saxony, for example, the correlation coefficient increases from 0. We introduced a new dataset of over 1, patents granted in the Grand Duchy of Baden between and The data suggest that foreign patenting was already an important means of technology transfer in the early decades of German industrialization.
Moreover, we have shown that foreign inventors filed patents predominantly in industries that accounted for a high share of the workforce in Baden. Although we have shown that domestic and foreign inventors filed patents in similar technological fields, we do not know whether foreign technology transfer promoted the growth of innovative industries in Baden or led to a crowding out of domestic innovation by foreign competition.
The question of whether foreign patenting fostered or hampered domestic innovation has to be left open for further research. A comparison of the different effects of German patent regimes on technology transfer could be another fruitful area for research. Baden took a very liberal stance towards foreign patenting, setting almost no obstacles for foreign inventors, while other German states such as Prussia or Saxony were more restrictive.
Please note: The publisher is not responsible for the content or functionality of any supporting information supplied by the authors. Any queries other than missing content should be directed to the corresponding author for the article. Volume 72 , Issue 1. If you do not receive an email within 10 minutes, your email address may not be registered, and you may need to create a new Wiley Online Library account. If the address matches an existing account you will receive an email with instructions to retrieve your username. Alexander Donges University of Mannheim Search for more papers by this author.
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Tools Request permission Export citation Add to favorites Track citation. Share Give access Share full text access. Share full text access. Please review our Terms and Conditions of Use and check box below to share full-text version of article. I A united German patent law did not emerge until , when the Imperial government harmonized the multitude of different patent systems that existed across the German states and introduced a central administration, the Imperial Patent Office in Berlin.
II To analyse the patterns of patenting, we constructed a dataset that includes information on all patents granted in Baden between , the first year for which patent records are available, and , when the German patent systems were harmonized. Total Original inventor Not original inventor Location of patentee No. Baden that were part of the Zollverein in Development over time Figure 1 shows the evolution of patents granted between and Figure 1 Open in figure viewer PowerPoint.
Spatial distribution of patents filed by foreigners Table 2 shows that a small number of countries accounts for a high share of patents filed by foreigners. State Province No. Baden Total German states Total other countries Figure 2 Open in figure viewer PowerPoint. Basemap: naturalearthdata. Important technologies The original patent records do not categorize inventions by technology class, as is common in later periods. Technology group a Note: a See online app.
S1 for a description of the aggregation scheme and information about the technology classes that are included in each group. Total Baden German states excl. Baden Other countries IVa. Steam power, locomotives, and railway waggons Textiles Chemicals 4. Scientific and medical instruments 4.
Coal, coke, and gas generation 4. Foodstuffs 4. Paper and printing 3. Beer, wine, and alcohol 3. Ceramic and stone working 3. Metal production 3. Household goods 3. Agricultural machinery 3. Flour mills 2. Metal goods 2. Metal processing in general 2. Leather 2. Internal combustion engines 2. Firearms 1. Precision mechanics 1. Tobacco 1. Wood processing 1. Construction 1. Musical instruments 0. Explosives 0. Electrical engineering 0. Glass 0. Mineral oil and lipids 0. Shipbuilding 0.
Rubber 0. Note: a See online app. Technological concentration over time The data suggest that the increase in patenting activity was broadly based.
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The HHI is defined as the squared patent share of each technology group, summed over all 30 technology groups: 1. Period Total Baden German states excl. Baden Zollverein in Other countries —77 0. III An inventor's decision to file a patent in a foreign country is mainly affected by market size. IV In the nineteenth century, product markets were less integrated than in modern times, due to relatively high transport costs. Mean Std. Distance 4. Notes : Patent takes a value of 1 if we observe at least one patent between and , and it takes a value of 0 otherwise. City population is the city population in in 1,s of inhabitants.
Source : See online app. S2 for more details on the data. In cols. In col. University Technical university takes a value of 1 if a university technical university was in operation in Language takes a value of 1 if the native language of a city was German. Rhine takes a value of 1 if a city was located on the River Rhine.
Zollverein takes a value of 1 if a city was located in a member state of the Zollverein in Coast takes a value of 1 if a city was located on the coast. Latitude Longitude is the latitude longitude of the city. We include country dummies in all regressions and use robust standard errors. Standard errors are reported in parentheses. Notes : We report coefficients estimated using a logit model. Latitude Longitude is the latitude longitude of a city. Notes : We report coefficients estimated using an OLS model. V The available data allow us to measure Baden's potential to imitate foreign technologies in two ways.
Baden d d Employment shares for Baden in See online app. S1 for information about aggregation and industry definition. Employment data from Deutscher Zollverein, Tabellen. Shares by technology group, foreign patentees c c Distribution of patents by industry for all patents granted to patentees from German states excl. Baden and other countries, respectively. German states excl. Baden 0. Employment data from Deutscher Zollverein , Tabellen. Definition of technology groups S2. Definition of variables used in section V S3. Additional regression models Please note: The publisher is not responsible for the content or functionality of any supporting information supplied by the authors.
Footnote references. Bairoch, P. Google Scholar. Crossref Google Scholar. Citing Literature. Volume 72 , Issue 1 February Pages Figures References Related Information. Close Figure Viewer. Browse All Figures Return to Figure. Previous Figure Next Figure.
Email or Customer ID. Forgot password? Old Password. New Password. Password Changed Successfully Your password has been changed. Returning user. Request Username Can't sign in? Forgot your username? Enter your email address below and we will send you your username. Part of Zollverein in b b Includes only German states excl. Hanover f f Kingdom of Hanover until Additional regression models.
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This was manifest in the growth of urban and village shops, the use of shop window displays, the development of city department stores from the s , and the extension of newspaper and billboard advertising. The economy flourished when cotton boomed and exports were high. However, when markets became overstocked and confidence was shaken, the economy went into recession.
This pattern of boom and slump continued throughout the 19th century. However, the success of the economy came to rest on much broader foundations by the s with the expansion of railway networks first at home then abroad. Furthermore, there was growing demand from other industrialising nations and the range of British manufactures was extended, particularly in iron and steel sectors and in engineering.
Risks were great and bankruptcy rates were high but start up costs in most sectors were relatively low. Capital and credit were easily available and many individuals and families became wealthy and successful. So superior in terms of competitiveness and pricing were most British manufactures of the mid 19th century, that the extension of free trade created a further positive dynamic. Even the much debated repeal of the Corn Laws in , which were laws preventing the importation of foreign grains until domestic prices reached very high levels, did not have the disastrous impact predicted by the agricultural lobby.
This was because raised investment in the sector, growing specialisation and rising urban demands for foodstuffs ushered in a period of 'High Farming' and general profitability. Not only British products but British ships, British capital and British financial institutions dominated world trading. The Great Exhibition of marked the peak of British economic dominance. A huge range of British products were displayed for foreign and domestic visitors in the monumental visionary architectural achievement of the Crystal Palace in Hyde Park.
However, the storm clouds were already gathering. Other countries, particularly Germany, and the United States were catching Britain up. They had more abundant and cheaper supplies of energy and raw materials.
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Railways would soon open up the great granaries of the world in Russia, and north America flooding Europe with cheap grain. The way ahead lay in retreat into the unprotected and more easily exploitable markets of the Empire. Growth in the economy was decelerating from the s. Some sectors, notably arable farming, textiles, iron and steel, engineering and several consumer goods were entering a more difficult phase. Entirely new industries such as chemicals were to be pioneered elsewhere, notably in Germany. It has been argued that Britain experienced a very incomplete transition to industrial society and that this was responsible for the loss of British economic supremacy from the later 19th century.
The aristocratic land-owning class continued to dominate in government. Financial and rentier interests, rather than the new industrial entrepreneurs, tended to guide national economic policy, often at the expense of industry. Industrial magnates themselves frequently aspired to landed lifestyles. Second and third generations of industrial dynasties were often sent for classical training at public schools and sought careers in law or imperial administration rather than in business.
It has been suggested that such gentlemanly and half-hearted attitudes towards industrialism were the Achilles heel of British success. This is an interesting idea but can be misleading. The deceleration of growth of the economy in the late Victorian period and the growing rivalry from competitors can be seen as the inevitable price to be paid for early pioneering of new and untried technologies. Rival industrialisers could learn from British mistakes and often received more state assistance, protection and finance. The conscious policy of following Britain's lead generally made their industrialisation more forceful and speeded the catch up process.
Industrial and commercial entrepreneurs may not have been dominant in central government but their influence was keenly felt. This was particularly so in calls for social and political reform such as with the new poor law of , with suffrage extension and with free trade. By the s and 40s, in most major industrial towns and cities, entrepreneurial figures gained control of local and municipal government and had a major impact on urban and regional politics.
In the industrial and social unrest of the 19th century, struggles occurred between the growing force of industrial employers and the working classes over their working and living conditions. Karl Marx exaggerated when he saw British society of the mid 19th century riven along class lines. Paternalism and deference were strong but it was certainly the case that class tensions between workers and employers frequently conditioned social and political relationships and economic and social policies. The success of the Victorian economy was accompanied by high unemployment, poverty, urban squalor and harsh working and living conditions.
Particularly strong on how the industrial revolution has and might be interpreted. Daunton Oxford University Press, - The most up to date textbook on the economic history of the period. British Society, by Richard Price Cambridge University Press, - A novel view about how the political and social history, as well as the economic history, of the Victorian period should be viewed in the context of changes since the s.
The Factory Question and Industrial England, by Robert Gray Cambridge University Press, - Excellent use of variety of sources to contemplate the coming of the factory and the extension of waged work. Particularly good on shifting constructions of class and gender on regional variations. Visit an industrial museum There are a large number of industrial museums containing machinery from the industrialisation period.
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Visit a local history library Most larger town and county libraries have a local history section, often very extensive. Here can be found books about the history of the area, including the period of industrialisation. Such libraries also often contain microfilm or microfiche copies of some primary source materials such as Census returns for the 19th century detailing the residents of all households and local newspapers try reading these to get a flavour of the period and its concerns from business and politics to crime and poverty. Sometimes such libraries also have printed primary sources such as trade directories listing all firms in a town or region - these often date from the later 18th century, becoming more frequent in the 19th century.
Visit an archive The most easily accessible, important and varied archive collections are housed in County Record Offices. These contain most local government deposits from medieval times, Parish records, estate papers, business records, maps and plans and much more of interest and use in studying the Victorian period. The main archive for national records is the Public Record Office at Kew. Do some industrial archaeology You can learn a lot about the Victorian period simply by studying what remains of the period on the ground.
It is fairly easy to date buildings from architectural features and from old maps and plans copies of which can often be obtained at local history libraries and from old photographs there are now many published collections. It's fun to look out particularly for industrial premises and warehouses and to see what function they serve these days. Using trade directors it's possible to match premises which survive today to their residents in the 19th century.
Much Victorian housing remains, though increasingly this is middle and upper class housing as back to backs, tenements and courts have been bulldozed to make way for new developments. By using the Census Enumerators Books it's possible to have some fun matching a substantially unaltered Victorian house or street to its residents in the period to She specialises in the impact of economic and social change within different local and regional, economic, social and cultural settings. Her books include The Industrial Revolution London, Search term:.