The idea that European political fragmentation, despite its evident costs, also brought great benefits, enjoys a distinguished lineage. In the closing chapter of The History of the Decline and Fall of the Roman Empire (1789), Edward Gibbon wrote: ‘Europe is now divided into 12 powerful, though unequal, kingdoms.’ Three of them he called ‘respectable commonwealths’, the rest ‘a variety of smaller, though independent, states’. The ‘abuses of tyranny are restrained by the mutual influence of fear and shame’, Gibbon wrote, adding that ‘republics have acquired order and stability; monarchies have imbibed the principles of freedom, or, at least, of moderation; and some sense of honour and justice is introduced into the most defective constitutions by the general manners of the times.’ […] In other words, the rivalries between the states, and their examples to one another, also meliorated some of the worst possibilities of political authoritarianism. Gibbon added that ‘in peace, the progress of knowledge and industry is accelerated by the emulation of so many active rivals’. Other Enlightenment writers, David Hume and Immanuel Kant for example, saw it the same way. From the early 18th-century reforms of Russia’s Peter the Great, to the United States’ panicked technological mobilisation in response to the Soviet Union’s 1957 launch of Sputnik, interstate competition was a powerful economic mover. More important, perhaps, the ‘states system’ constrained the ability of political and religious authorities to control intellectual innovation. If conservative rulers clamped down on heretical and subversive (that is, original and creative) thought, their smartest citizens would just go elsewhere (as many of them, indeed, did).
Political disintegration combined with cultural-market integration was the key.
In 18th-century Europe, the interplay between pure science and the work of engineers and mechanics became progressively stronger. This interaction of propositional knowledge (knowledge of ‘what’) and prescriptive knowledge (knowledge of ‘how’) constituted a positive feedback or autocatalytic model. In such systems, once the process gets underway, it can become self-propelled. In that sense, knowledge-based growth is one of the most persistent of all historical phenomena – though the conditions of its persistence are complex and require above all a competitive and open market for ideas.