"By ignoring and evading rather than altogether abolishing obsolete rules and regulations, eighteenth century Britain moved slowly toward a free market society."

“What made the West successful was neither capitalism, nor science, nor an historical accident such as a favourable geography. Instead, political and mental diversity combined to create an ever changing panorama of technologically creative societies.”

“The distinction between micro- and macro inventions matters because they appeared to be governed by different laws. Micro-inventions generally result from an intentional search for improvements, and are understandable -if not predictable- by economic forces. They are guided, at least to some extent, by the laws of supply and demand and by the intensity of search and the resources committed to them, and thus by signals emitted by the price mechanism. Furthermore, in so far as micro inventions are the by-products of experience through learning by doing or learning by using they are correlated with output or investment. Macroinventions are more difficult to understand, and seem to be governed by individual genius and luck as much as by economic forces. Often they are based on some fortunate event, in which an inventor stumbles on one thing while looking for another, arrives at the right conclusion for the wrong reason, or brings to bear a seemingly unrelated body of knowledge that just happen to hold the clue to the right solution. The timing of these inventions is consequently often hard to explain. Much of the economic literature dealing with the generation of technological progress through market mechanisms and incentive devices thus explain only part of the story. This does not mean that we have to give up the attempt to try to understand macroinventions. We must, however, look for explanations largely outside the trusted and familiar market mechanisms relied upon by economists.”

“Technological systems, like all cultural systems, must have some built-in stability.”

“Before the Industrial Revolution all techniques in use were supported by very narrow epistemic bases. That is to say, the people who invented them did not have much of a clue as to why and how they worked. The pre-1750 world produced, and produced well. It made many path-breaking inventions. But it was a world of engineering without mechanics, iron-making without metallurgy, farming without soil science, mining without geology, water-power without hydraulics, dye-making without organic chemistry, and medical practice without microbiology and immunology. The main point to keep in mind here is that such a lack of an epistemic base does not necessarily preclude the development of new techniques through trial and error and simple serendipity. But it makes the subsequent wave of micro-inventions that adapt and improve the technique and create the sustained productivity growth much slower and more costly. If one knows why some device works, it becomes easier to manipulate and debug it, to adapt to new uses and changing circumstances. Above all, one knows what will not work and thus reduce the costs of research and experimentation.”

“If England led the rest of the world in the Industrial Revolution, it was despite, not because of her formal education system.”

“As Hooykaas argued, the pervasiveness of religion meant that for any idea to become socially acceptable, it made a huge difference whether it was resisted, tolerated, or sponsored by prevalent religious beliefs.”