The transition from an agricultural to an industrial economy began in Britain in the 18th century, spread to France and Germany between 1850 and 1870, and finally spread to Russia in the 1890s. The governments of those countries actively supported industrialization. In southern and eastern Europe, some pockets of industry developed, surrounded by traditional agrarian economies. Although continental nations sought to borrow from and in some instances imitate the British model—the success of which was represented by the Crystal Palace Exhibition in 1851—each nation’s experience of industrialization was shaped by its own matrix of geographic, social, and political factors. The legacy of the revolution in France, for example, led to a more gradual adoption of mechanization in production, ensuring a more incremental industrialization than was the case in Britain. Despite the creation of a customs union in the 1830s, Germany’s lack of political unity hindered its industrial development. However, following uni cation in 1871, the German Empire quickly came to challenge British dominance in key industries, such as steel, coal, and chemicals.
Beginning in the 1870s, the European economy fluctuated widely because of the vagaries of financial markets. Continental states responded by assisting and protecting the development of national industry in a variety of ways, the most important being protective tariffs, military procurements, and colonial conquests. Key economic stakeholders, such as corporations and industrialists, looked to national governments to promote economic development by subsidizing ports, transportation, and new inventions; registering patents and sponsoring education; encouraging investments and enforcing contracts; and maintaining order and preventing labor strikes. In the 20th century, some national governments assumed far- reaching control over their respective economies, largely in order to contend with the challenges of war and financial crises.