ABSTRACT
Industrial history is necessarily concerned with economic growth and decline. Lancashire cotton textiles provide a classic case study of these processes. This chapter uses a political economy framework to examine the development of the cotton economy of Lancashire. It defines the special characteristics of Lancashire entrepreneurship. The chapter examines the diffusion of alternative technologies and identifies examples of companies that sought to specialise in ring spinning or experiment with automatic looms, in some cases from a relatively early date. It then explains the diffusion pattern by reference to the financial performance and factor cost structures of companies pursuing different capital investment policies. During the late nineteenth century important changes occurred in the social nature of Lancashire capitalism. As the industry moved from growth to maturity, wealth became increasingly concentrated. To some extent, Lancashire's development was regionally distinct and remained separate from the rest of the British economy.
