The British government provided substantial support for the Industrial Revolution both in its overt actions to stimulate growth and also by its willingness to allow the new economic forces to gain momentum with little political interference. The revolutions of the 17th century created in Great Britain a climate of power that rested in the hands of forward-thinking individuals who saw the opportunities inherent in economic change. The more conservative absolutist governments on the continent based their power on tradition and the status quo, whereas in Great Britain the government encouraged economic innovation and change. For example, tough tariff restrictions in the 18th century had banned the importation of cotton cloth from India and therefore supported new industry. In addition, the British government forbade the export of industrial technology, in order to prevent other countries from latching onto and imitating British developments. Parliamentary law facilitated the organization of new companies and enterprises and restricted the ability of workers to form combinations or unions. Local governments also had much more of a free hand in supporting industrial growth in their areas by assisting in the funding of roads and later canals and ultimately railroads.
This infrastructure meant a faster transportation of raw materials and finished goods and ultimately reduced costs. Furthermore, there was little government regulation of manufacturing activities unlike on the continent, where rules dictated the quality, technology, and working conditions of the workshops. Even the nature of British urban life as the industrial revolution began differed significantly from the rest of Europe. Cities on the continent such as Paris and Madrid served as administrative, judicial, and religious centers and were dominated by bureaucrats, military men, shopkeepers, artisans, and domestic workers to support these groups. These political and cultural centers pulled in revenues and rents from the rural areas. The German states were fractured into rural areas dominated by local capitals. Great Britain, on the other hand, had its national seat of power in London, but the overall size of its political structure was smaller than its European counterparts and not all the fruits of economic activity flowed to the center. By the 18th century the older urban centers such as York, Chester, Stafford, etc. were in decline, and already the new industrial entities in the northern and western parts of Great Britain such as Manchester, Birmingham, Leeds, Glasgow, etc. had revealed their emerging economic power. In addition, a growing number of industrial villages sprang up connecting the rural areas to the nearby growing industrial centers and ensured a steady and smooth flow of goods and raw materials.