A Culture of Growth

1. Culture, Not Just Institutions, Drives Modern Growth

The fundamental belief that the human lot can be continuously improved by bettering our understanding of natural phenomena and regularities and the application of this understanding to production has been the cultural breakthrough that made what came after possible.

Beyond formal rules. Modern economic growth, particularly the "Great Enrichment" since 1800, cannot be fully explained by institutions alone, such as property rights or market efficiency. While crucial for "Smithian growth" (trade and allocation), these don't account for the explosion of technological creativity. The deeper, often overlooked, driver is "culture"—a society's shared beliefs, values, and preferences.

Games against nature. This book argues for a critical distinction: institutions primarily govern "games between people" (social relations), but technological progress fundamentally involves "games against nature." Cultural beliefs about humanity's relationship with the physical environment—its intelligibility, manipulability, and the virtue of exploiting it—are paramount. These attitudes determine a society's willingness to investigate nature's secrets and apply that knowledge.

Attitude and aptitude. Sustained innovation hinges on both the attitude towards understanding and manipulating the natural world, and the aptitude for turning that understanding into productivity. This book focuses on the former, tracing how European culture, between 1500 and 1700, cultivated attitudes conducive to the relentless pursuit and application of "useful knowledge," laying the groundwork for the Industrial Revolution.

2. Cultural Evolution Explains Societal Transformation

Evolution occurs on cultural variants, which are neither random mutations on existing variants nor necessarily slow cumulative variations that are retained selectively.

Darwinian framework, adapted. Understanding how culture changes requires an evolutionary approach, but one adapted for social phenomena. Unlike biological evolution, cultural evolution is often quasi-Lamarckian, meaning acquired characteristics (beliefs, knowledge) can be learned and passed on. It involves variation in cultural traits, their transmission (vertical from parents, horizontal from peers, oblique from role models), and selection from a "superfecund" menu of options.

Beyond slow drift. This framework moves beyond rigid Darwinian models that rely solely on differential reproduction, which would imply extremely slow cultural change due to long human generations. Instead, it emphasizes conscious choices made by individuals to adopt or reject cultural elements. This "choice-based cultural evolution" allows for more rapid and directed shifts in societal norms and knowledge.

Complexity and contingency. Cultural systems are complex, characterized by pleiotropy (one cultural change affecting multiple others) and epistasis (multiple elements needed for a trait). They resist change due to existing "cultural capital" and the coherence of belief systems. However, external shocks or compelling new information can weaken this resistance, leading to adaptive change. This perspective highlights that historical outcomes are neither inevitable nor purely random, but a result of contingent interactions between cultural variants and their environment.

3. Cultural Entrepreneurs Reshape Intellectual Landscapes

Cultural entrepreneurs can thus be regarded as the exceptional and unusual specimens who are the sources of evolutionary change: they are the ones who do not take the cultural choices of others as given, but try consciously to change them.

Agents of change. While broad cultural forces are at play, specific individuals, termed "cultural entrepreneurs," play a pivotal role in driving cultural evolution. These are individuals who not only adopt new cultural traits but actively work to change the "cultural menus" available to others, persuading them to embrace novel ideas, values, or preferences. They are the "unreasonable men" who adapt the world to themselves.

Coordinating disparate ideas. Successful cultural entrepreneurs often synthesize existing, diffuse notions into coherent doctrines, acting as focal points for intellectual convergence. Think of Marx unifying socialist thought or Freud organizing psychiatry. Their success depends on sensing a latent demand for new ideas, often arising from a disconnect between prevalent beliefs and new realities or anomalies.

Market for ideas. This process unfolds in a "market for ideas," where cultural entrepreneurs are "sellers" trying to persuade an "audience" of "buyers." Their success is a function of:

• Content: The inherent logic and fit of their ideas with new facts.
• Rhetoric: Their ability to articulate messages that resonate.
• Direct bias: Leveraging their own or their followers' authority.
• Environment: Operating in a context where resistance to innovation is weakened.
  These individuals, though few, can dramatically alter the trajectory of cultural development.

4. Francis Bacon: Prophet of Useful Knowledge and Progress

The true and legitimate goal of the sciences is to endow human life with new discoveries and resources.

Visionary, not practitioner. Francis Bacon, despite being a poor scientist himself (lacking mathematical skill and rejecting key contemporary discoveries), was a cultural entrepreneur of immense importance. His enduring legacy lies in his powerful articulation of a new purpose for knowledge: to improve humanity's material conditions through systematic investigation and application. He envisioned a "true and lawful marriage between the empirical and the rational faculty."

Bridging theory and practice. Bacon championed the integration of formal knowledge (science) with the practical insights of artisans and craftsmen. He argued that scientific progress depended on understanding workshop practices and that technology should be informed by natural philosophy. This "Baconian program" laid the intellectual foundation for the later "Industrial Enlightenment," where propositional and prescriptive knowledge would mutually reinforce each other.

Challenging ancient authority. Bacon launched a devastating critique of scholasticism and excessive reverence for antiquity, which he called "idols of the theater." He advocated for an empirical, experimental methodology, where nature was "twisted" to reveal its secrets, rather than relying on deductive reasoning or ancient texts. His writings, particularly New Atlantis, inspired the formation of institutions like the Royal Society, which aimed to organize and disseminate useful knowledge for public benefit.

5. Isaac Newton: Architect of a Knowable, Manipulable Universe

By becoming science personified… Newtonian Science also became the model to emulate, the manifestation of ‘superior knowledge’ that summoned all other learning to reorient itself along similar lines.

Affirmation, not just hope. If Bacon offered a hopeful vision for knowledge-based progress, Newton provided its powerful affirmation. His Principia Mathematica (1687) demonstrated that the universe operated according to universal, intelligible, and predictable laws, discoverable through observation and mathematics. This triumph instilled immense confidence in humanity's ability to understand and, by extension, manipulate nature.

Methodological synthesis. Newton's genius lay in combining Baconian empiricism (observation, data, experiment) with the mathematical rigor of Galileo. He eschewed mere speculation, insisting on theories inferred from observation and expressed mathematically. This methodological synthesis became the gold standard for scientific inquiry, inspiring other fields—from medicine to economics—to seek similar elegant, quantifiable laws.

Cultural icon and model. Newton's immense prestige, wealth, and knighthood made a career in science highly desirable, creating a "model-based bias" for aspiring intellectuals. His work became a symbol of human rationality and genius, embodying the Enlightenment's ideals. While Newton himself was deeply religious, his mechanical philosophy inadvertently paved the way for a more secular understanding of the universe, where natural laws, rather than divine intervention, explained phenomena. This shift was crucial for the unhindered pursuit of useful knowledge.

6. Political Fragmentation Fostered Intellectual Pluralism

The divisions into small states are favourable to learning, by stopping the progress of authority as well as that of power.

Hume's insight. David Hume astutely observed that Europe's political fragmentation, a system of "neighbouring and independent states," was a key factor in its intellectual flourishing. This constant competition among rulers, though often violent, created an environment where no single authority could fully suppress new ideas or persecute heterodox thinkers. If one state became too repressive, intellectuals could simply move to another.

Coordination failure for conservatism. This fragmentation acted as an "insurance against economic and technological stagnation." While conservative forces (like the Catholic Church or powerful guilds) often tried to maintain the intellectual status quo, their efforts were undermined by a lack of coordinated suppression. Innovators, from Martin Luther to Galileo, could exploit these divisions, finding patronage or refuge in rival states.

Beyond fiscal benefits. While political competition also had fiscal and administrative benefits (restraining rulers from excessive exploitation), its most profound impact was cultural. It fostered a competitive "market for ideas" where intellectual pluralism thrived. This "national emulation" encouraged states to promote arts and sciences, not just for internal strength, but also for international prestige, further accelerating the pace of intellectual innovation.

7. The Republic of Letters: Europe's Transnational Idea Market

This commonwealth is a State extremely Free. The Empire of Truth is only acknowledged in it; and under their protection an innocent war is waged against anyone whatever.

An "invisible college." The Republic of Letters was a transnational, self-governing community of scholars and intellectuals that emerged in early modern Europe. It functioned as a competitive market for ideas, transcending political and religious boundaries. Its members, connected by letters, publications, and occasional meetings, shared an implicit understanding: knowledge was a non-rivalrous good to be freely exchanged and rigorously debated.

Incentives for innovation. This unique institution provided crucial incentives for intellectual innovation. Reputation, earned through peer evaluation of original contributions, became the primary currency. This "credit without profit" system motivated scholars to generate new knowledge and place it in the public domain, ensuring its cumulativeness and accessibility. Priority rights, rather than exclusionary patents, were the norm for propositional knowledge.

Rules of engagement. The Republic of Letters established norms for intellectual discourse:

• Openness: New knowledge was to be shared, not kept secret.
• Contestability: All ideas, even those from revered authorities, could be challenged.
• Transnationality: Nationality or religion were theoretically irrelevant to intellectual merit.
• Evidence-based: Disputes were settled by logic, evidence, and rigorous methodology, rather than dogma.
  This framework fostered a dynamic environment where ideas were constantly tested, refined, and disseminated, laying the groundwork for modern scientific progress.

8. Puritanism's Role in British Scientific and Utilitarian Ethos

Our modern scientific utilitarianism is the offspring of Bacon begot upon Puritanism.

Congenial to experimentalism. Puritanism, a powerful cultural movement in 17th-century England, proved highly compatible with Baconian experimental philosophy. Puritans saw scientific inquiry as a means to "manifest the Glory of God and enhance the Good of Man." The systematic study of God's creation was a form of worship, and the pursuit of "useful knowledge" was a moral duty, condemning idleness and promoting diligence.

"Good works" and utility. Influential Puritan theologians like Richard Baxter emphasized "good works" that were "useful and profitable in a worldly sense." This ethos aligned with the utilitarian goals of experimental science, fostering a culture where practical applications and material improvement were seen as virtuous. This cultural shift helped elevate the social prestige of scientific and technological endeavors.

Education and pragmatism. Puritan culture also stressed education, not just for religious literacy, but for practical subjects like mathematics and physics. Dissenting academies, founded by non-conformists, became centers for progressive, science-oriented education. While Puritan political dominance was short-lived, their cultural impact on British society, particularly in valuing empirical inquiry, hard work, and practical knowledge, created a fertile ground for the later Industrial Enlightenment.

9. The Triumph of Progress: Moderns Over Ancients

The wisdom of the Greeks was but a wisdom of boys, it can talk but not generate, it was “barren of works.”

Shedding ancestor worship. A pivotal cultural shift in early modern Europe was the emergence of the "idea of progress"—the belief that contemporary generations could surpass the achievements of their ancestors. This required abandoning "ancestor worship" and developing an "inferiority complex toward the past," as articulated by Bacon. The "battle of the books" between "ancients" and "moderns" in the 17th century, though seemingly trivial, symbolized this profound cultural evolution.

New evidence, new confidence. The "moderns" gained ground due to an avalanche of new information and discoveries that contradicted classical authorities:

• Geographical discoveries: New continents, flora, and fauna shattered ancient geographical and biological knowledge.
• Astronomical observations: Tycho Brahe's nova and Kepler's elliptical orbits refuted Aristotelian cosmology.
• New instruments: Telescopes, microscopes, and barometers revealed previously unseen phenomena, disproving ancient "facts" like the impossibility of a vacuum.
  This accumulation of verifiable facts undermined the credibility of the classical canon across all fields of knowledge.

Cumulativeness and utility. The moderns argued that knowledge was cumulative, building upon past discoveries rather than merely reinterpreting them. They emphasized that their age possessed superior methodologies (experimentalism, mathematics) and tools. This growing confidence in humanity's ability to continuously expand useful knowledge, and apply it for material benefit, became a defining characteristic of the Enlightenment and a powerful cultural lubricant for innovation.

10. The Enlightenment: A Synthesis for Sustained Economic Growth

The Enlightenment was the final stage in the cultural evolution that eventually led to the Industrial Revolution and modern economic growth in Europe.

Culmination of cultural shifts. The Enlightenment, emerging in the late 17th century, synthesized the preceding cultural transformations. It was a complex movement, but its core economic dimensions—the "Industrial," "Medical," and "Commercial" Enlightenments—shared a common belief: useful knowledge was the key to material progress. This included:

• Growth of useful knowledge: Emphasizing the interaction between scientific theory and practical application.
• Institutional improvement: Advocating for political and legal reforms to support economic activity.

Bridging science and industry. While the direct impact of 17th-century "high science" on early Industrial Revolution inventions is debated, the Enlightenment fostered a culture where the potential of science to transform industry was widely believed. This led to:

• Applied research: Mathematicians like Euler working on water wheel efficiency, naturalists like Réaumur studying insects for agriculture.
• Technical literacy: A growing appreciation for mathematical calculations, technical drawings, and empirical data among engineers and artisans.
• Public science: The proliferation of societies, lectures, and publications dedicated to disseminating useful knowledge.

Optimism and agenda-setting. Enlightenment thinkers, despite some skepticism, largely embraced an optimistic view of progress. They believed that systematic inquiry, combined with institutional reforms (rule of law, property rights, limited government), would lead to continuous economic improvement. This cultural commitment to progress, fueled by the successes of science and technology, provided the intellectual and moral framework for the unprecedented economic changes that followed.

11. China's Divergent Path: A Contrast in Cultural Dynamics

In China, the authority of one teacher was propagated easily from one corner of the empire to another and “none had the courage to resist the torrent of popular opinion, and posterity was not bold enough to dispute what had been universally received by their ancestors.”

The Needham Question revisited. While China boasted impressive scientific and technological achievements, particularly during the Song dynasty, it did not experience a self-sustaining, accelerating "Industrial Revolution" like Europe. This divergence, often framed by the "Needham Question," highlights critical differences in cultural dynamics, particularly in the "market for ideas."

Centralized intellectual control. Unlike Europe's fragmented political landscape, unified imperial China, as David Hume observed, allowed for easier propagation of a single intellectual authority. The civil service examination system, based on rote memorization of neo-Confucian classics, channeled the brightest minds towards textual scholarship rather than empirical or experimental inquiry. This created a powerful "coercion bias" that, while not always absolute, limited intellectual innovation.

Backward-looking scholarship. Chinese intellectual movements like kaozheng (evidentiary research) focused on philology, linguistics, and historical studies, aiming to reconstruct the wisdom of ancient sages. While rigorous, this scholarship was fundamentally retrospective, lacking the European Enlightenment's forward-looking belief in continuous, disruptive progress. The crucial institutional bridges between scholars and artisans, vital for applying useful knowledge, remained weak, hindering the co-evolution of science and technology.

Last updated: October 21, 2025