Mokyr: Industrial Revolution’s Growth Drivers

Key Takeaways

• Modern economic growth is a relatively recent phenomenon, significantly transforming living standards and lifting billions out of poverty.
• Nobel laureate Joel Mokyr’s work focuses on the Industrial Revolution and the intellectual and cultural prerequisites for sustained growth.
• Mokyr distinguishes between ‘macro-inventions’ (radical innovations) and ‘micro-inventions’ (incremental improvements), arguing the Industrial Revolution involved a clustering of both.
• The shift from trial-and-error to systematic understanding, driven by the Scientific and Industrial Enlightenment, was crucial for sustained progress.
• European cultural and institutional factors, including networks of knowledge diffusion and political fragmentation, fostered an environment conducive to growth.

Modern economic growth represents one of economics’ most remarkable achievements. Over the last two centuries, innovations have dramatically increased living standards, liberating billions from the subsistence levels that characterized most of human history.

The theories explaining this sustained expansion of per capita income, such as endogenous growth theory developed by Nobel laureates like Paul Romer, Philippe Aghion, and Peter Howitt, owe much to understanding the origins of these dynamics. For that historical perspective, the work of Joel Mokyr, a co-recipient of the 2025 Nobel Prize in Economic Sciences, is indispensable.

Mokyr is considered a pivotal figure in understanding the Industrial Revolution, the central transformation driving modern economic growth. His extensive body of work, including thirteen books, a five-volume encyclopedia, and numerous articles, has fundamentally reshaped our understanding of industrialization’s mechanics, intellectual drivers, and societal impact. His writing seamlessly blends deep scholarly insight with precise theoretical frameworks, earning him wide acclaim from both historians and economists.

As two of Mokyr’s former students who have pursued careers in economic history, we aim to highlight the key milestones of his influential career, inspired by his profound passion and generous mentorship.

The Industrial Revolution and Technological Progress

The Nobel committee recognized Mokyr for “having identified the prerequisites for sustained growth through technological progress.” This understanding was built progressively through his detailed accounts of the Industrial Revolution, notably crystallized in five key books.

The Lever of Riches (1990) is a foundational work that delves into the specifics of technical change. Mokyr challenged the prevailing ‘sources of growth’ methodology, which treated technological advancement as an unexplained ‘residual.’ Instead, he meticulously traced major inventions from antiquity onwards, assessing their direct contribution to economic growth, thereby opening the ‘black box’ of technological progress.

Through detailed analysis of key industrial age inventions, Mokyr categorizes breakthroughs into two types: macro-inventions, which are radical, paradigm-shifting innovations, and micro-inventions, which are incremental improvements that enhance the utility of macro-inventions.

• Macro-inventions: Examples include the steam engine, Edward Jenner’s smallpox vaccination, and hot air balloons, representing fundamental shifts in capabilities.
• Micro-inventions: Examples include James Watt’s separate condenser for steam engines and Henry Cort’s puddling and rolling process for iron production, which made initial innovations economically viable and scalable.

Mokyr posits that the Industrial Revolution was characterized by a cluster of macro-inventions that spurred a rapid acceleration of micro-inventions. He also suggests that Britain’s leadership role stemmed from a comparative advantage in developing these crucial micro-inventions.

In The British Industrial Revolution: An Economic Perspective (1993), Mokyr’s extensive introduction addresses the debate on the pace of change. Using a model of a growing industrial sector alongside a stagnant agricultural one, he demonstrates how significant technical advancements can take decades to manifest in macroeconomic data.

Notably, Mokyr uses compelling analogies to dismiss arguments that the revolution couldn’t have been abrupt because contemporaries didn’t explicitly label it as such, akin to how ancient Romans didn’t refer to their era as ‘Classical Antiquity.’

Propositional vs. Prescriptive Knowledge

A key question Mokyr addresses is why similar clusters of transformative and economically impactful inventions did not emerge in other historical periods or regions. While technical progress occurred before industrialization, it was typically slow and haphazard, offering only transient escapes from the Malthusian trap.

In The Gifts of Athena (2002), Mokyr introduces a distinction between propositional knowledge (understanding why things work) and prescriptive knowledge (understanding how to make things work). In eras with limited propositional knowledge, innovation often resulted from costly trial and error, with little theoretical understanding. Such limitations led to diminishing returns for new techniques.

💡 Furthermore, social divisions between intellectual elites (‘savants’) and practitioners (‘fabricants’) hindered the cross-fertilization of ideas necessary for faster progress.

The Industrial Revolution, conversely, was marked by strong positive feedback loops between propositional and prescriptive knowledge, facilitated by increased interaction between scientists and artisans. This virtuous cycle, Mokyr argues, enabled advancements in fields like engineering, metallurgy, chemistry, and medicine that were previously impossible.

Cultural and Institutional Foundations of Growth

Mokyr’s work, particularly in The Enlightened Economy (2009), explores why these crucial technological and intellectual transformations materialized in Europe. He contends that the roots of economic modernity lie not just in capital or resources, but in a fundamental cultural shift centered on reason and scientific inquiry.

The Scientific Revolution and the subsequent Enlightenment fostered the belief that nature could be understood and manipulated through scientific research. Simultaneously, the proliferation of learned societies, journals, and intellectual networks facilitated the dissemination of practical knowledge, bridging the gap between theoretical science and craft production.

Invention in Europe was not a matter of unique creativity, but rather the development of a systematic framework for understanding and utilizing nature for economic gain.

Britain’s political environment played a critical role by offering security and openness. Its relative tolerance for dissenting views, less stringent censorship compared to continental Europe, and support for patent laws and infrastructure created a sustainable innovation landscape that laid the groundwork for modern economic growth.

It’s crucial to note that Britain did not industrialize in isolation; many macro-inventions originated from continental Europe. However, the British cultural and institutional environment proved most effective at consolidating these advancements into a powerful engine for growth.

Networks for Knowledge Creation and Diffusion

In A Culture of Growth (2016), Mokyr identifies two key elements that enabled this transformative period in Europe.

• Pan-European Knowledge Networks: From the Middle Ages, European universities emerged as specialized institutions for intellectual development. While initially focused on theology, law, and medicine, they increasingly prioritized the pursuit and preservation of propositional knowledge, establishing Latin as a common scholarly language.
• The Printing Press: This invention significantly reduced the cost and increased the efficiency of disseminating knowledge. The Republic of Letters, a transnational community of scholars and craftsmen, exemplified this culture of open discussion and the sharing of scientific ideas, paving the way for the Enlightenment.

The second crucial element was Europe’s political fragmentation. This prevented any single authority from suppressing ideas that challenged power structures. Intellectuals could move across borders to find new patrons if their ideas faced opposition in one region.

📍 Europe benefited from a balanced political landscape. Unlike the rigid centralization of China, which could stifle innovation, or the extreme fragmentation of the Islamic world after the fall of the Baghdad Caliphate, which hindered network reconstruction, Europe’s diverse polities fostered a dynamic intellectual environment. Mokyr’s forthcoming work with Avner Greif and Guido Tabellini, Two Paths to Prosperity: Culture and Institutions in Europe and China, 1000–2000, further explores this comparative perspective.

Illuminating the Path of Industrialization and Progress

Joel Mokyr’s scholarly contributions comprehensively illuminate the historical trajectory of industrialization, from its foundational innovations and sectoral impacts to its broader technological, intellectual, and cultural underpinnings.

His research underscores the critical importance of open intellectual inquiry, the free exchange of ideas, and the robust defense of scientific principles for economic progress. In an era where these principles are often challenged, Mokyr’s Nobel Prize serves as a vital reminder that curiosity, pluralism, and intellectual collaboration are the cornerstones of prosperous societies, and deviating from them risks undermining the benefits of sustained growth.

Beyond his prolific writings, Mokyr has significantly contributed to the economics profession, notably as president of the Economic History Association. His role as a founding director of the Center for Economic History at Northwestern University has solidified economic history as a vibrant academic field.

Perhaps Mokyr’s most profound impact has been through his mentorship of over 60 doctoral students, many of whom have become leading figures in their own right. The news of his Nobel award brought immense joy to his former students worldwide, many of whom recall his instrumental support in launching their careers. His influence is so recognized that a Mokyr dummy variable in regressions analyzing the placement of economic historians shows a consistently positive and significant effect.

Mokyr’s generosity extends beyond intellectual guidance and professional sponsorship, encompassing his doctoral students, academic colleagues, and friends. He maintains a keen interest in his academic offspring, actively seeking updates on their research, promoting their work, and sharing professional insights and personal news. This deep engagement fosters a strong sense of connection, even when physical proximity is limited.

He famously stated, I have no former students; just students, reflecting his enduring commitment to continuous mentorship and intellectual kinship. This sentiment encapsulates the warmth and deep personal connection felt by those influenced by his work and his remarkable generosity of spirit.

Final Thoughts

Joel Mokyr’s Nobel Prize honors his monumental contributions to understanding the historical roots of modern economic growth, particularly the Industrial Revolution.

His research emphasizes the crucial interplay of technological innovation, the scientific method, and conducive cultural and institutional environments in driving sustained prosperity.

Mokyr’s work serves as a powerful testament to the enduring value of intellectual curiosity, open discourse, and scientific advancement for societal progress.