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The Lever of Riches: Technological Creativity and Economic Progress
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Beginning with a fascinating, concise history of technological progress, Mokyr sets the background for his analysis by tracing the major inventions and innovations that have transformed society since ancient Greece and Rome. What emerges from this survey is often surprising: the classical world, for instance, was largely barren of new technology, the relatively backward society of medieval Europe bristled with inventions, and the period between the Reformation and the Industrial Revolution was one of slow and unspectacular progress in technology, despite the tumultuous developments associated with the Voyages of Discovery and the Scientific Revolution.
What were the causes of technological creativity? Mokyr distinguishes between the relationship of inventors and their physical environment--which determined their willingness to challenge nature--and the social environment, which determined the openness to new ideas. He discusses a long list of such factors, showing how they interact to help or hinder a nation's creativity, and then illustrates them by a number of detailed comparative studies, examining the differences between Europe and China, between classical antiquity and medieval Europe, and between Britain and the rest of Europe during the industrial revolution. He examines such aspects as the role of the state (the Chinese gave up a millennium-wide lead in shipping to the Europeans, for example, when an Emperor banned large ocean-going vessels), the impact of science, as well as religion, politics, and even nutrition. He questions the importance of such commonly-cited factors as the spill-over benefits of war, the abundance of natural resources, life expectancy, and labor costs.
Today, an ever greater number of industrial economies are competing in the global market, locked in a struggle that revolves around technological ingenuity. The Lever of Riches, with its keen analysis derived from a sweeping survey of creativity throughout history, offers telling insights into the question of how Western economies can maintain, and developing nations can unlock, their creative potential.
- ISBN-100195074777
- ISBN-13978-0195074772
- PublisherOxford University Press
- Publication dateApril 9, 1992
- LanguageEnglish
- Dimensions7.95 x 5.3 x 0.7 inches
- Print length368 pages
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- Publisher : Oxford University Press (April 9, 1992)
- Language : English
- Paperback : 368 pages
- ISBN-10 : 0195074777
- ISBN-13 : 978-0195074772
- Item Weight : 2.31 pounds
- Dimensions : 7.95 x 5.3 x 0.7 inches
- Best Sellers Rank: #661,661 in Books (See Top 100 in Books)
- #612 in History of Technology
- #646 in Music Theory (Books)
- #1,470 in Economic History (Books)
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It is clearly seen from The Lever of Riches that Mokyr follows a scientific methodology with which he tests hypothesises of different historians who tried to solve the technological progress mystery, and he refutes most of these hypothesis by using sound justifications. From chemistry to agriculture, metallurgy to shipping, by narrating the different inventions of the historical periods from classical antiquity to year 1914, Mokyr tries to address the causes of technological progress.
I was quite satisfied by the explanations made by Mokyr, especially the attitudes of societies, the techniques used before and after 1850, the policy on patent system, the dispute between guilds and firms, comparison of China and Europe, the evolution of macro and micro inventions which those all together effects the technical progress.
There is huge difference between Mokyr, Joseph Needham and Lynn White on the technique they used and the information they provided. In his Science in Traditional China, Joseph Needham mainly focuses on the technological progress and social changes in China which took place for nearly 1500 years. It is not possible to understand from Needham's text why China could not develop a Western-style technological progress model, which Mokyr shows by describing the attitudes of guilds, the emergence patent system, the perception of societies' on value, the techniques (learning by doing, learning by using) used by the European's, the interaction among the countries and many more. The linear reasoning approach applied by the Lynn White is quite different than that of Mokyr's scientific approach. White's solutions to the technological progress phenomenon are basically an incremental technological change in tools and their effect on political and social system. White claims that the usage of stirrup, plough and reinforced armour led to a change in the political system. Despite it has valuable explanations, contrary to Mokyr, White's text does not give us any information on the guilds, the techniques employed for utilization of inventions, or the developments and their interactions in mining, shipping, and the change of the centre of gravity of technological progress.
In the search to answer why Europe led other continents and why England led Europe until 1850, Mokyr examines different sectors (chemistry, mining, metallurgy, etc) one by one and shows how a technical change in one sector affects other sectors. It is obvious from his text that by switching among the sectors and time periods, Mokyr has both vertical and horizontal depth of knowledge on technological change and its agents.
In order to understand the Industrial Revolution, the mutual progress made by the humanity shall be inspected, and Mokyr does this. Inventions made in China, medieval Islam and Europe are explained with their effects on society and productivity. But since the Industrial Revolution emerged in England, the text narrated by Mokyr mainly deals with the developments occurred in England and Europe.
I think that there is no one-single root cause of the technological progress, but dozens of macro and micro causes that forms the shape, speed, and path of the progress. From The Lever of Riches, we see that, indeed, the technological progress phenomenon is not an easy one which can be explained by a single theory.
It was enlightening for me to read how England led others by performing learning-by-doing and learning-by-using technique, a technique which eventually led England behind of Germany and United States due to England's resistance of changing her techniques with the new scientific methods which were mainly generated by the universities.
Despite he has questions whether the progress or stagnation is the normal state of a society, I could not see the reason why Mokyr did not focused on the fact that the progress cannot be achieved without stagnation due to the need of consuming the products of the progress.
One comment to the book may be that Mokyr seems to be inclined to see the negative sides of the craft guilds, and why he did not mentioned their contributions to the cumulative body of knowledge, which is explained in detail in Civilization and Capitalism, of Braudel.
I am totally glad about having read this book, and I believe those who seek the answers for or interested in the technological progress phenomenon will find The Lever of Riches an indispensable source of reference.
The steam engine is acknowledged to be the iconic invention of the Industrial Revolution. Professor Mokyr notes that, in addition to pumping water out of mines, "it was the first economically useful transformation of thermal energy (heat) into kinetic energy (work)." (p. 85).
He fails to amplify on the significance of this step: this discovery opened the door to the use of new fuels with much higher energy content (density). Until the steam engine, Europe's primary source of power on land was the muscles of the horse (and when nature obliged, wind and gravity acting on water). Muscle--for which the fuel was grass, oats, and hay--had gone about as far as it could go. The steam engine and its heat-driven progeny (the internal combustion engine and the turbine) allowed the use of the energy embodied in almost anything that burned. The steam engine demonstrated the feasibility of shifting from grass, oats, and hay to coal, oil, and (much later) nuclear fission.
I suggest that the primary importance of the Industrial Revolution was the huge magnification of the power made possible by this switch in basic fuels. The dramatic increase it permitted in the productivity of labor and the ability to do entirely new things (for example, heavier-than-air flight) was the central enabler of the hockey stick growth in nearly everything.
This criticism not withstanding, The Lever of Riches is an important book, a tour de force. I have drawn heavily and gratefully from Prof. Mokyr's work in my own book, The Evolution of Wealth: An Economic History of Innovation and Capitalism, The Role of Government, and the Hazards of Democracy.[...]
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Technological change has been a major force in history leading to increased economic output without an increase in labour or capital resources. The role of technological innovation was ignored by the Classical Economists who focused their attention instead on the supply side of capital investment and labour and the demand side of markets, population growth and goods costs. It was the Austrian Economist Schumpeter who wrote in the first half of the 20th C to emphasise the crucial role of technological progress in the Economy with the application of information to the production process to increase its efficiency or to produce better new products. This book is an extensively researched study on the history of technological change and its impact on economic growth in different eras and societies.
The first half of the book is descriptive charting the main technical inventions from Antiquity until the end of 19th century, with clear descriptions of how they came about and their effects on material life. It is interesting to note that technological innovations were mostly independent of scientific research until well into the 19th Century. They were driven by a variety of cultural and economic factors but mostly by the endeavours of remarkable tinkerers and engineers with great abilities for empirical observation and design. Nevertheless without the financial encouragement of enlightened entrepreneurs a lot of these inventions may not have seen the light.
The second half of the book is more analytical as it attempts to evaluate a number of explanations about technological progress. Why it took place in some societies and not others, why it petered out after promising beginnings, why it is often resisted. It discusses the comparative role and importance of various social, environmental and cultural factors in facilitating or hampering technological improvements: from population pressure and physical environment to religious inhibitions, scientific knowledge and state interventions. The author provides great insights into the historical progress of Chinese technology and the possible causes of its rapid decline. He brings interesting explanations for the genesis of the British Industrial Revolution in the 18th C. and its technological achievements and influence across the rest of Europe. As one of the explanations for the British case, he proposes the concept of “clustering of ideas” reaching a critical mass as it is generated by cross fertilisation of inventors, scientists and entrepreneurs within a supportive or at least a non hostile political environment. He also stresses the importance of legal patents in England as an encouraging factor for invention.
The last part of the book is the most speculative with debatable conclusions as the Author borrows heuristic analogies from Evolutionary biology to explain the dynamics of technological change.
Overall a classic of its genre, extremely well written, combining the history of technological changes in Economic history with fascinating conclusions.







