Early industrialization transformed European economies and societies. Cottage industries and the putting-out system gave way to factories and mechanization, revolutionizing production methods. These changes laid the groundwork for the Industrial Revolution.

Agricultural innovations like enclosure and new farming techniques boosted food production. This supported population growth and urbanization, creating a workforce for emerging industries. The shift to wage labor and proletarianization reshaped social structures and economic relationships.

Early Manufacturing and Production

Cottage Industry and Putting-Out System

• Cottage industry involved production of goods in homes rather than factories, often on a part-time basis to supplement agricultural work
• Putting-out system was a method of cottage industry where a merchant provided raw materials to rural workers who produced goods in their homes, then returned finished products to the merchant for payment
• Allowed for decentralized production and flexibility for workers to balance manufacturing with other tasks like farming
• Commonly used in textile production (wool, linen, silk) across Europe in the 17th-18th centuries

Factory System and Mechanization

• Factory system emerged in the late 18th century, centralizing production in a single facility with machinery and specialized labor
• Marked a shift away from the decentralized putting-out system to a more efficient, controlled manufacturing process
• Division of labor broke down production into specialized tasks performed by different workers, increasing efficiency and output
• Mechanization introduced labor-saving machinery to speed up production and reduce reliance on skilled artisans
• Early examples included the spinning jenny and water frame in the British textile industry which greatly increased thread and cloth production

Agricultural Changes

Enclosure Movement

• Enclosure movement privatized formerly common agricultural lands, consolidating them into larger and more profitable farms
• Began in England in the 16th century and accelerated in the 18th-19th centuries, eventually spreading to other parts of Europe
• Displaced many small farmers and agricultural laborers who migrated to cities, providing labor for new industries
• Allowed for experimentation with new crops, crop rotation, and selective animal breeding to increase agricultural productivity

Agricultural Revolution

• The agricultural revolution of the 17th-18th centuries saw major increases in agricultural productivity due to new methods and technologies
• New crops from the Americas like potatoes and maize were introduced, providing more calorie-dense food sources
• Use of fertilizers, irrigation, and mechanical seed drills improved crop yields
• Selective breeding of livestock increased meat and dairy output
• Helped support rapid population growth which supplied labor for industrialization

Social and Economic Shifts

Urbanization and Wage Labor

• Industrialization spurred rapid urbanization as rural workers migrated to cities for factory jobs
• Growing cities like London, Paris, and Berlin strained infrastructure and living conditions for the working class
• Shift from rural putting-out system to urban factories made wage labor the dominant form of work
• Workers no longer owned the means of production and had to sell their labor for wages, creating a new urban proletariat

Proletarianization and Mercantilism

• Proletarianization was the process by which formerly self-sufficient peasants became wage laborers who depended on selling their labor to survive
• Created a new class of urban industrial workers who were reliant on the market economy and vulnerable to economic fluctuations
• Mercantilism was the dominant economic policy of the 17th-18th centuries which aimed to increase a country's exports and amass gold and silver reserves
• Mercantilist policies used tariffs, subsidies, and monopolies to protect domestic industries and colonial trade networks (British East India Company)
• Helped spur global trade, colonial expansion, and the growth of port cities involved in international commerce