The Industrial Revolution in the United States: 1790-1870

Joshua Rosenbloom ()

No 34225, NBER Working Papers from National Bureau of Economic Research, Inc

Abstract: This chapter explores the distinctive trajectory of American industrialization up to 1870, emphasizing how the United States adapted and transformed British technologies to suit its unique economic and resource conditions. Rather than a straightforward transfer of innovations, the chapter argues that American industrial development was shaped by path-dependent processes and historical contingencies—such as the Embargo Act of 1807 and government sponsorship of firearms production—that enabled the emergence of a domestic innovation ecosystem. The chapter offers fresh insights into how high-pressure steam engines, vertically integrated textile mills, and precision manufacturing techniques evolved in response to labor scarcity, capital constraints, and abundant natural resources. A particularly novel contribution is the detailed analysis of how American manufacturers substituted mechanization and organizational innovation for skilled labor, leading to the development of technologies that were not only distinct from their British counterparts but also foundational for the Second Industrial Revolution. The chapter also highlights the democratization of invention, showing how economic incentives and institutional support fostered widespread innovation among ordinary citizens. By integrating technological, economic, and institutional perspectives, this chapter provides a compelling explanation for why the United States developed a robust manufacturing sector despite seemingly unfavorable initial conditions.

JEL-codes: N61 N71 (search for similar items in EconPapers)
Date: 2025-09
Note: DAE
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