Iron, rail and steam, 1st Industrial revolution
“Second Industrial Revolution”, internal combustion engine, electrical technology and chemicals
Industrial developments were interdependent
The Merger of Science and Engineering
- Scientific R+D was appropriated by industrial interests
- Scientific research:
- Increased productivity
- New methods of production
- Required innovation and capital access
- Scientific R+D was long, and expensive, this required excess capital from:
- Traditional manufacturing profits
- Financial speculation
- Industrial consolidation (vertical integration)
- 1920’s: over 500 corporate mergers
- Union Carbide, Dupont
- Union Carbide (carbon, alloys, oxyacetylene, liquid gas, bakelite and plastics)
- Dupont (explosives, gasoline, and automobile applications)
- Science, variety and industrial laboratories
- Petroleum, metallurgy, paper, cement, photography, fertilizers, steel
The Chemical Industry in the US
- Medieval dye technology: plant extracts and acids
- Industrial revolution: batch production, artificial substances
- US industry: Acids, alkalis, inorganic salts
- Industries that used chemicals: textiles, paper, leather, glass, soap, paint, petroleum, rubber, electrical equipment, fertilizers, insecticides, automobile
- Dye industry, textiles and printing
- Before WWI, German chemical companies:
- Initial lead
- Low cost chemicals
- Advanced university scientific research
- Ownership of patents
- After WWI, German patents redistributed, tariff barriers
- US industry: catalytic, electrochemical, organic synthesis and liquifaction processes
- Electrolytic process used to produce salts, soda, chlorine and bromine
The Reciprocal Relationship between Science and Industry
- Science, new processes, monopolies, and patent control
- Science directed by industrial interests, curriculum
- Science/engineering skills brought to mining, petroleum, steel, rubber, automotive industries
Electrical Industry
- Turn of century electrical industry dominated by a few large companies, electrical power generation, lighting, transportation and communications
- Engineers and scientists determined industrial model:
- Patents
- Research laboratories
- Technical training programs
- GE, Westinghouse and ATT
- 1876, Alexander Graham Bell, voice transfer over wires
- Reliable current, efficiency, standardization and reliability
- In 1885 Westinghouse, alternating current
Patents and Innovation
- Patents lasted for 17 years
- Securing of patents and mergers to gain control over patents
- Thomas Edison: Menlo Park, New Jersey, market guide to innovation, diffuse patents
- Complexity, technological systems and a network of innovations, mergers
- Patent maintenance and patent pooling
- Patent protection became more important as industry adopted more science and complexity
Vertical Integration
- Vertical integration: When a supplier of a product merges with a user
- Vertical integration used to reduce transaction costs and to guarantee supply and fixed prices in expensive R+D intensive industries
- Suppliers of raw materials and users of manufactured products
- Vertical integration: internal demand for purity, volume and variety
- Dupont, war, explosives, dynamite, nitroglycerine and black powder
Conclusion: The “Scientific Revolution” in Industry
- Science in industry at end of 19th century required:
- Control and purchase of patents
- Scientific training for employees
- Large scale industrial scientific R+D
- “Scientific revolution” in industry, corporate and scientific advancement
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