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Patents, what for? The case of Crossley Brothers and the introduction of the gas engine into Spain, c. 1870–1914

2013; Taylor & Francis; Volume: 56; Issue: 4 Linguagem: Inglês

10.1080/00076791.2013.837890

1743-7938

José María Ortiz-Villajos López,

Italy: Economic History and Contemporary Issues

AbstractThis paper aims to assist in a better understanding of the real role of patents by examining how Crossley Brothers – the world's main producer of gas engines before the First World War – and its partners (as well as the German inventor Nikolaus Otto) used the patent system to introduce the gas engine into Spain. The evidence suggests that patents were for them mainly an instrument to protect the market for their imported products. It is probable that the know-how transferred to the local agents and the engines imported could somehow enhance the domestic industrial abilities, but the supposed aim of the patent system – creating a local industry – was not achieved. Although the Spanish patent system was not well implemented, this was not the main explanation of this failure; rather it was the weak domestic technological abilities.Keywords:: patent systemCrossley Brothersgas engineinternational technology transferinnovationNikolaus OttoUnited KingdomSpain AcknowledgementsI would like to thank Professor Robert Millward for his help during my stay in Manchester in 2005; the Museum of Science and Industry in Manchester, especially Jean Milton; the personnel of the Historical Archive of the Spanish Patent Office for their help in my research; the Complutense University of Madrid for its financial support; and Tim Golden for reviewing the article's English. This paper has greatly benefited from the comments of two anonymous referees, for which the author is grateful. An earlier version of the paper was presented at a workshop of the British Academy Network on 'Patents in History' (London, 2008), and I thank all the participants. Errors and omissions remain my own responsibility.Notes 1.CitationGranstrand, 'Innovation', 280. 2. For a general analysis of the many aspects and complexities of patents and the changes in the patent systems over periods and places, see CitationGranstrand, The Economics. For a review of the economic history literature on the matter, see CitationSullivan, 'Patents'. For an overview of the business historiography on technology and innovation, including intellectual property, see CitationGraham, 'Technology'. 3. According to CitationJaffe and Lerner, Innovation, this is one of the main current problems of the patent system, which would be reformed to prevent the use of patents for that aim instead of for facilitating innovation. In reality firms often use patents both to control markets and to claim knowledge and technology (innovation), as the case of the Berkel company shows (CitationRooij, 'Claim and Control'). 4. The nineteenth-century controversy is famous (CitationMachlup and Penrose, 'The Patent Controversy'; CitationBatzel, 'Legal Monopoly'), but the debate began earlier, as CitationMacLeod, Inventing, Chapter 10, and CitationMokyr, 'Intellectual Property', 350–352, have pointed out for the British case. 5. See CitationGranstrand, 'Innovation', 278–280, for a brief summary, and CitationMachlup, An Economic, for a classic review. For a compilation of many significant contributions to the economic analysis of patents, see CitationTowse and Holzhauer, The Economics. 6. Some of the first empirical studies on these topics are CitationLevin et al., Survey Research; CitationMansfield, 'Patents'; CitationScherer, 'The Propensity'. Other valuable studies are, for instance, CitationDeardorff, 'Welfare Effects'; CitationGilbert and Shapiro, 'Optimal Patent'; CitationHelpman, 'Innovation, Imitation'; CitationKlemperer, 'How Broad'; CitationLee and Mansfield, 'Intellectual Property'; CitationSakakibara and Branstetter, 'Do Stronger Patents'. For a recent review of the literature, see CitationGranstrand, 'Innovation', 278–284. 7. For two useful reviews with an historical perspective on the role of patents in catch up processes, see CitationCimoli et al., Innovation; CitationKhan and Sokoloff, 'Historical Perspectives'. Petra Moser has shown how the patent system (or its absence) may influence more the direction than the quantity of inventive activity, concluding that 'the introduction of patent laws in developing countries today may slow rather than accelerate economic growth if patent laws lead them to compete more directly with innovations from developed countries' (CitationMoser, 'How do Patent Laws', 1233). In relation to the debate on strong versus weak patent systems, the study comparing the history of the US patent system and the European ones is very illuminating (CitationKhan, The Democratization). For a very useful comparative study of the strength of patent protection in 60 countries from 1850 to 2000, see CitationLerner, 150 Years of Patent Protection; CitationLerner, '150 Years of Patent Office'. 8. One of the main problems is that aggregate data group together patents of very different value. CitationSchankerman and Pakes, 'Estimates', proposed to solve this problem using renewal fees to qualify the value of patents, although CitationMacLeod et al., 'Evaluating Inventive', have shown some problems in this method. More recently, CitationNuvolari and Tartari, 'Bennet Woodcroft', have proposed an alternative method to estimate the value of English patents from 1617 to 1841. For a general reflection of the problems and benefits of aggregate patent data, see CitationGriliches, 'Patent Statistics'. An interesting debate about the usefulness of patent statistics to measure innovation during the Industrial Revolution was maintained between CitationSullivan, 'Patent Counts', and CitationO'Brien et al., 'There is Nothing'. 9. This has been since long ago the approach of business historians and historians of the technology, although economists of technical change have also recognised that 'Case studies can offer a rich description of the setting and the major factors that determine international technology diffusion' (CitationKeller, 'International Technology', 759). 10. Quite a lot of historical studies on technology transfer or multinationals (see, for instance, CitationDonzé, 'Switzerland'; CitationForeman-Peck, 'International Technology'; CitationFountain, 'Technology Acquisition'; CitationJones, 'The Multinational'; CitationLandes, The Unbound; CitationMiranda, 'American Machinery'; CitationReich, 'Lightning'; CitationUchida, 'The Transfer') have thrown some light on the role of patents, but not in enough depth for the present purpose, as they have not specifically focused on the analysis of the patent system. And those that have done so (such as CitationBruland, 'The Management'; CitationBurhop and Lübbers, 'The Design'; CitationMercelis, 'Leo Baekeland's'; CitationRooij, 'Claim and Control') have mainly dealt with cases of developed countries, not shedding light on the specific problems associated with weak patent systems in peripheral countries. 11. There are several historical studies of the Spanish patent system with a general or sectorial outlook (see next section for details), but more specific case studies are needed to understand how it actually worked. 12. In spite of its interest, this episode has received little attention in the historiography. The only book about the history of Crossley Brothers is CitationEyre et al., Crossley, but it is mainly focused on Crossley Motors, the company's automobile division, founded in 1904. This paper brings to light some unknown aspects of Crossley Brothers' history from the original documents of the firm. 13. The classic work by CitationLandes, The Unbound, was an important landmark in the economic history of technology transfer, but many other significant studies by economic and business historians followed, such as , 'Economic Development'; Rosenberg, 'Factors Affecting'; Rosenberg, 'The International Transfer'; CitationWilkins, 'The Role'; , International Technology; Jeremy, Technology Transfer; CitationBruland, 'Skills, Learning'. The topic has also received increasing attention by economists since the first empirical works by CitationMansfield, 'International Technology', and CitationTeece, The Multinational. For two overviews of the economic analysis of technology transfer, see CitationHall, 'Innovation'; CitationKeller, 'International Technology'. 14. For a general history of multinationals, see CitationJones, Multinationals. For the specific case of British multinationals, see CitationJones, British Multinationals; , 'British Multinational'; Nicholas, 'Agency Contracts'. For a general overview of the literature, see CitationWilkins, 'The History'. 15. MSIM, MS Papers 0403, Crossley Brothers c. 1870–1970; MS Papers 0170/13, Crossley Brothers Directors Minutes Books, 1881–1900, 1897–1902 and 1910–22. 16. For a general view of the history of technology in Spain, see, for instance, CitationAyala-Carcedo, Historia; CitationNadal et al., España, 200 años; CitationSilva-Suárez, Técnica e Ingeniería. For a more recent overview, see CitationInkster and Calvo, 'European Technologies'. CitationMaluquer de Motes, Técnics i Tecnologia, is a very complete compilation of studies related to the technological development in Catalonia, showing different cases and ways of technology transfer. 17. The transfer of electrical and mechanical technology into Spain during the first third of the twentieth century is very revealing in this sense (CitationBetrán Pérez, 'La transferencia'). 18.CitationSellés et al., Carlos III y la ciencia. 19. Many studies have been published about the history of the engineering schools in Spain, such as CitationAlonso Viguera, La Ingeniería Industrial, on the industrial engineers; CitationCano Pavón, Estado, enseñanza, on the industrial education in the mid-nineteenth century; CitationCapel et al., De Palas a Minerva, about the military engineering; CitationCasals Costa, Los ingenieros, on the mounts engineers; CitationGarrabou, Enginyers, about the Catalan industrial engineers; CitationRumeu de Armas, Ciencia y tecnología, and CitationSáenz Ridruejo, Ingenieros, about the school of civil engineering; and many others. For a general analysis of the relation between technical education and industry during the period of our case study, see CitationRiera i Tuébols, 'Industrialization'. For a recent review of the literature, see CitationRoca-Rosell, 'Overview'. 20. This is not surprising as it has been and still is the case for the majority of countries: 'For most countries, foreign sources of technology account for 90 percent or more of domestic productivity growth. At present, only a handful of rich countries account for most of the world's creation of new technology. The pattern of worldwide technical change is thus determined in large part by international technology diffusion' (CitationKeller, 'International Technology', 752). 21. The cases of the Scandinavian countries (CitationBruland, Technology Transfer; CitationBruland, 'Skills, Learning') and Japan (CitationDonzé, 'Switzerland'; CitationUchida, 'The Transfer') as receptors of British (but also German, Swiss, American, etc.) technology at the end of the nineteenth century are particularly interesting for this study, offering a good contrast with the Spanish case, as both of them have been able to turn from followers to technological leaders. 22. This was the case, for instance, in the international expansion of Dunlop Rubber Company (CitationJones, 'The Multinational'), Babcock & Wilcox (CitationBruland, 'The Management'), the Bakelite Corporation (CitationMercelis, 'Leo Baekeland's'), Berkel (CitationRooij, 'Claim and Control'), the diffusion of the telephone technology (CitationForeman-Peck, 'International Technology'), and many other cases. For a general study on the matter, see CitationInkster, 'Technology Transfer'. 23. Both the patent systems established in Venice in the fifteenth century and in England in 1623 were designed in part to attract and implement foreign innovations (CitationGranstrand, The Economics, 32–34). 24.CitationGarcía Tapia, Patentes de invención. 25.CitationSáiz, Why Did Corporations. 26. There were two previous attempts in 1811 and 1820, when two different patent laws were passed, but because of political unrest they were in force for a very short period of time (CitationSáiz, Invención, 74). 27. The renewal fees were not annual in every country. For instance, in the UK, which instituted renewal fees in 1852, the payments had to be made at three points: at the beginning and at the end of the third and seventh year (CitationMacLeod et al., 'Evaluating Inventive', 543). Nevertheless, in 1884 the patentees were given the option of paying in installments (Ibid., 547). 28.CitationKhan, The Democratization. 29.CitationMokyr, 'Intellectual Property', 349. 30. This was not clear in the Law of 1826, which regulated the patents of introduction in its 3rd Article, but a later Royal Order of 14 June 1829 clarified this point, saying in its 2nd Article that patents of introduction 'do not prevent anybody from introducing from abroad the machines, instruments and so on' (cf. CitationSáiz, Legislación histórica, 62, my translation). From then on, the subsequent patent laws of 1878, 1902 and 1929 'always stipulated that they cannot prevent importations' (CitationSáiz, Patents of Introduction, 6). 31.CitationOrtiz-Villajos, Tecnología y desarrollo, 145. 32. There are some general analyses of the patents registered in the country from the eighteenth to the twentieth centuries (, Tecnología y desarrollo; Ortiz-Villajos, 'Patents and Economic'; CitationSáiz, Propiedad industrial, Invención; Sáiz, 'The Spanish Patent'; Sáiz, 'Investigación'), as well as some others focused on specific sectors or regions (e.g. CitationAmengual, Bielas; CitationCayón et al., Vías paralelas; CitationFernández de Pinedo et al., 'Patents, Sugar'; CitationOrtiz-Villajos, 'Patentes, innovación'; CitationSáiz, 'El sistema de patentes'). 33.CitationSáiz, Patents of Introduction, and Sáiz, Why Did Corporations, offer valuable general descriptions of the patents of introduction and the working requirements in the Spanish patent system, but point out the necessity of case studies to understand their actual use and importance. CitationPretel and Sáiz, 'Patent Agents', analyses the role played by the patent agents in Spain, but does not deal specifically with the problem of technology transfer. On the other hand, the quite numerous case studies focused on technology transfer into Spain (see notes 16 and 17) have not usually directly dealt with the role played by patents. 34. For a short biography of each brother, see , 'Francis William'; Barlow, 'Sir William John'. 35.CitationEyre et al., Crossley, 14. One might wonder why Otto licensed his invention if the patent gave him an exclusivity right. An economic explanation is that 'The new product or process may also be licensed profitably to other producers in order to boost the new product. In general, studies have shown that […] if market size can be increased by the joint efforts of many producers, it may pay off to give up a bit of the market share to other licensees' (CitationGranstrand, The Economics, 70). In fact, licensing has been a very common practice and an important instrument for technology transfer for a long time, as CitationLamoreaux and Sokoloff, 'Market Trade', have shown for the case of the US and CitationBurhop and Lübbers, 'The Design', for the case of Germany precisely in the period 1880–1913. 36.Engine Research Group at the University of Nottingham, 'The Otto and Langen Free Piston Atmospheric Gas Engine'. Accessed June 26, 2012. http://www.nottingham.ac.uk/engines-group/ottolang.htm 37.CitationBarlow, 'Francis William', 851. 38.CitationEyre et al., Crossley, 17. 39. Ibid. 40.CitationNeville, 'Motor a Gas', 26 (my translation). 41.CitationEyre et al., Crossley, 22. 42. 'This innovative move was to make a great impression on one Henry Ford who visited Pottery Lane at the turn of the century. Subsequently Ford would attribute his ideas for production line assembly of motor cars to what he saw there' (CitationEyre et al., Crossley, 26). In a later visit to Manchester in April 1928, 'in conversation with Sir Kenneth Crossley Mr. Ford mentioned that it was one of the very early Crossley gas engines, which he saw in America, which gave him the idea of using internal combustion engines in motor cars, and that, in fact, all the chief developments and progress of locomotion on land and in the air were based on the principles embodied in the engines of which Crossley Brothers were the pioneers' (MSIM, MS Papers 0403/3/6). 43. Deutz AG, 'The Engine of Progress'. Accessed June 26, 2012. http://www.deutz.de/live_deutz_com/file/chronik_en/app.html 44. The evolution of Crossley's sales (Figure 1) seems to fit an S-shaped distribution, very common in technology diffusion processes. CitationGriliches, 'Hybrid Corn', and CitationMansfield, 'Technical Change', were probably the first economic studies showing this behaviour, the explanation of which is that 'adoption proceeds slowly at first, accelerates as it spreads throughout the potential adopting population, and then slows down as the relevant population becomes saturated' (CitationHall, 'Innovation', 466). Of course, other factors –protectionism, competition, etc. – might have affected the specific case of Crossley's sales. For a wider discussion of the S-shape and other diffusion models, see CitationLissoni and Metcalfe, 'Diffusion'. 45.CitationNeville, 'Motor a Gas', 26 (my translation). 46. Deutz AG, 'The Engine of Progress'. Accessed June 26, 2012. http://www.deutz.de/live_deutz_com/file/chronik_en/app.html 47. This case has some interesting parallels with the story of Babcock & Wilcox, one of them being that the latter's British branch was more successful than the American parent company, showing an outstanding managing and technological dynamism (CitationBruland, 'The Management'). From this standpoint, the alleged British entrepreneurial decline at the end of the nineteenth century does not match well with these two cases; although it does if we consider that the original technology was American and German, respectively. 48. This was a very common strategy of international expansion for British firms: 'A study of a sample of 119 British manufacturing firms which made a direct investment between 1870 and 1939 showed that 94 percent of firms for whom information was available exported their product before undertaking FDI. Virtually every company had agency agreements with foreign companies before investing abroad' (CitationJones, Multinationals, 90). 49. 'These agency agreements often involved high transaction costs in terms of enforcement by the principals, as many agents sought large discounts or were inefficient in various ways. Such problems led firms to replace agents with selling companies' (CitationJones, Multinationals, 90; see , 'British Multinational', and Nicholas, 'Agency Contracts', for more details). This was exactly what happened in the case of Crossley Brothers, as we explain in the following paragraphs. 50.CitationOrtiz-Villajos, 'La Sociedad Anglo-Española', 433. 51. MSIM, MS Papers 0170/13/2, Crossley Brothers Directors Minutes Books, 1892–1900, 16 March 1892, 27–28. 52. Ibid., 20 April 1893, 103–104. 53. For more details about this episode, see CitationOrtiz-Villajos, 'La Sociedad Anglo-Española', 435–438. 54.CitationNeville, 'Motor a Gas', 26. The Sociedad Anglo-Española de Motores installed 256 engines from 1902 to 1907 (CitationOrtiz-Villajos, 'La Sociedad Anglo-Española', 452–453). 55. After this, Crossley hired another agent in Madrid – Alberto Maude – and, eventually – as it had done in Italy and the Netherlands – established a branch under the name of Compañía Española de Motores Crossley, which was operative until at least 1936 and became the key for the business of the company in Latin America (MSIM, MS Papers 0170/13/4, Crossley Brothers Directors Minutes Books, 1910–22, 170, 283–284, 378–379, 427), but that is another story. 56. For instance, one of the patents granted to the Sociedad Anglo-Española (SPO, Patent no. 34,536) was in force six years (Table 3), even though it was not worked and it was a patent of introduction, which could legally be in force a maximum of five years. 57. According to the Spanish patent law of 1878, the first three annual fees added up to only 60 pesetas altogether. The use of patents as a temporary defensive strategy – very widespread in Spain – has also been proved for the British case by CitationMacLeod et al., 'Evaluating Inventive', 559–560. 58. Using patents not for protecting inventions but for reasons of reputation or publicity was another 'heterodox' use of the patent system common in Spain, but also in other countries like England (CitationMacleod, Inventing, 81–88). Some recent surveys in various countries have showed that 'improving the corporate image' is not the most important but a significant advantage of patenting, as perceived by companies (CitationGranstrand, The Economics, 213; CitationGranstrand, 'Innovation', Table 10.3, 281). 59.CitationSáiz, Patents of Introduction, 12. In the previous period, especially from 1849 to 1878, the process was more efficient and rigorous as 'notarized independent reports were required' (Ibid.). 60. 'The truly cheap power obtained by these [Crossley] engines is a consequence of using Dowson gas, obtained through anthracite combustion […]. It can be affirmed that the actual cost of the effective hp per hour of operation obtained with an Otto-Crossley engine and Dowson Gas, ranges between two and three cents [of peseta …]. Such an enormous saving has caused justified excitement among manufacturers, and it can be assured that the Dowson gas plant is the boiler of the future, and that the steam engine, in competition with the Crossley gas engine, must give way to the latter, letting Watt's trail turn pale' (CitationNeville, 'Motor a Gas', 26, my translation). 61. Ibid. 62.CitationSáiz, Patents of Introduction, 12. 63. The technological collaboration between Crossley and Dowson was close and, according to Crossley's Director's Minutes Books, it began on February 1892 (MSIM, MS Papers 0170/13/2, Crossley Brothers Directors Minutes Books, 1892–1900, 4–17 February 1892, 13–18). 64. This could not have been possible in France or Germany, because, in contrast with Spain, in those countries the working requirements were more firmly enforced. In fact, this was one of the factors that led other British companies to establish manufacturing facilities or licensing agreements in those countries, as Geoffrey Jones has pointed out. The case of Dunlop is very revealing. In its expansion into France, it firstly associated with a local company (Clement) and exported its products through this company. But in 1891 'Clement's lawyers advised that it was necessary "to make the tyres in France as the law would not be satisfied with the putting on only"' (CitationJones, 'The Multinational', 26). The solution was the creation of the Compagnie Française des Pneumatiques Dunlop in 1892 to manufacture the tyres in France. 'Events took a similar course in Germany, where the company was advised in 1892 that "German patent law required that valves for use in Germany should be manufactured there"' (Ibid.).Due to the agreement with Otto, Crossley did not sell engines in Germany, but did significantly in France. Probably for similar reasons as Dunlop, the only foreign country for which the company seriously studied establishing an engine production plant (in 1900) was France, although the idea was finally rejected (MSIM, MS Papers 0170/13/3, Crossley Brothers Directors Minutes Book no. 1 (1897–1902), October 25th 1900, 320–321). The reasons are not clear, but it seems probable that the company considered it less costly to export without patent protection than to create another plant, with its enormous direct costs and the negative effects on the economies of scale, especially important for the machinery industry (CitationBetrán Pérez, 'La transferencia', 46, 66). 65.CitationOrtiz-Villajos, 'La Sociedad Anglo-Española', 433. 66. In fact, this dependency was explicitly shown in the title of the second patent, applied for in 1904: a patent of introduction for 'A gas plant by pressure, with neither gasometer nor boiler, "Crossley" system' (SPO, Patent no. 34,536, my translation). 67.CitationCimoli et al., Innovation, 10. 68. We lack detailed information for other countries, although we know that from 1884 to 1895 Crossley registered 46 patents in 13 countries/regions, distributed as follows: Great Britain (29), Germany (1), Austria (1), Belgium (1), France (1), Italy (1), New South Wales (3), Russia (1), South Australia (2), Spain (1), Sweden (1), USA (1), Victoria (3) (MSIM, MS Papers 0403/2/14). According to the European Patent Office's database (Espacenet), Crossley Brothers registered 124 patents in several countries from 1877 to 1965 (nine on behalf of Frank Crossley; 81 on behalf of William Crossley; and 34 on behalf of Crossley Brothers). In addition, Crossley Motors registered 56 patents from 1913 to 1956, almost all of them in the United Kingdom. 69. Five in all throughout the analysed years: James Atkinson, Thomas Rigby, Frank Fielden, James Hutton and Wilfried le Plastrier Webb (SPO, Historical Archive). 70. Details of these relations are related in Crossley's Director's Minutes Books (MSIM, MS Papers 0170/13). This kind of agreement was common among innovative British companies during the nineteenth century, although each one had its peculiarities and problems with its inventor-employees, as CitationMacleod, 'Negotiating', has shown for a variety of cases. 71. During the period 1875–1920, 29.5% of patents of invention and 28.7% of patents of introduction were officially worked, while in the previous period (1857–1874) the figures were 21.7% and 28.5%, respectively (CitationSáiz, Patents of Introduction, Table 3, 13). 72. An alternative would have been to license the manufacturing to local companies, but Crossley did not consider this option, at least for its main products. As far as we know, only in 1904 was the United States' agency allowed to produce three types of suction plants (cf. MSIM, MS Papers 0403/3/6) and in 1911 there was a negotiation with the Japan's agency for a licence to manufacture – with a royalty of 5% – some types of engines, although there is no proof that the deal was finally sealed (MSIM, MS Papers 0170/13/4, Crossley Brothers Directors Minutes Books, 1910–22, 32). 73. High tariffs – one of the factors behind foreign direct investment decisions of British multinationals (CitationJones, 'Origins', 8) – could have made this strategy infeasible, but it was not a very determining factor before 1914. As CitationForeman-Peck has found in his study on international technology transfer in telephony, before 1913 'Tariff protection was fairly low in all countries. Though the USA, Spain and Japan maintained moderately high levels of protection, in each case tariffs were insufficient to exercise much influence over the general direction of trade' (CitationForeman-Peck, 'International Technology', 131–132). This was the case with new technologies, as many countries were not still producing them, at least at the scale they needed. In the case of Spain, due to weak domestic production, tariffs charged on internal combustion engines were still quite low in the 1920s (11.4% ad-valorem) in comparison with other less complex types of machinery and other countries, such as Austria, Italy, Canada, Japan or Norway (CitationBetrán Pérez, 'La transferencia', 65). 74. The first patent was worked in the premises of La Maquinista Naval (Minorca), and the rest in five other companies, all of them located in Madrid (SPO, Historical Archive). 75. According to some recent empirical studies, 'the evidence points to a significant role for imports in international technology diffusion' (CitationKeller, 'International Technology', 767). The mechanisms through which the technology is transferred are also explained by those studies: 'Because international economic activities (trade, FDI, etc.) lead to additional contacts with foreign persons who may possess advanced technological knowledge (exporter, importer, engineers, researchers), this may stimulate the diffusion of (non-codified) foreign technology. Trade and interaction with multinationals may thus lead not only to technology diffusion of the limited kind (technology embodied in intermediate goods), but it may also raise the probability of international R&D spillovers' (Ibid., 757). 76. SPO, patent privilege no. 5,293, applied for on 20 April 1875 (my translation). 77.CitationAmengual, Bielas, 83. 78. Ibid., 82. 79. SPO, patent privilege no. 5,479, applied for on 27 June 1876 (my translation). 80. The German patent was registered on 5 June 1876; the French one on 9 June; the Spanish on 27 June; and the American, on 13 July (CitationAmengual, Bielas, 94). In other countries, a patent was presented around those dates. 81.CitationAmengual, Bielas, 97 (my translation). 82. Ibid. 83. The incidents of this patent are extensively related in CitationAmengual, Bielas, 95–100. 84. SPO, Patent no. 157, applied for on 10 December 1878 (my translation). 85. SPO, Patent no. 158, applied for on 10 December 1878 (my translation). 86.CitationCabana, Fàbriques, 129 (my translation). 87. Ibid. 88.CitationAmengual, Bielas, 100 (my translation). 89.CitationCabana, Fàbriques, 129 (my translation). 90. Ibid., 130. 91.CitationArroyo, 'Tècnics', 68–69. This failure shows how important domestic technological capabilities were, which in turn 'underlines the importance of identifying the major determinants of successful technology diffusion. Among the many that have been proposed, two stand out: human capital and R&D expenditures. Both are associated with the notion of absorptive capacity, the idea that a firm or country needs to have a certain type of skill in order to be able to successfully adopt foreign technology' (CitationKeller, 'International Technology', 774). In fact, 'even though poor countries receive almost all of their technology from abroad […] it is domestic technology efforts that matter most for them' (Ibid., 776). 92. The number of importers began to increase from then onwards, with the French firm Delamare, Deboutteville et Malandin being one of the most dynamic new entrants (CitationArroyo, 'Tècnics', 69). In addition, La Maquinista Terrestre y Marítima began to manufacture internal combustion engines in Barcelona in 1901 under a licence from the Swiss Winterthur, although it only made around 200 up to 1920 (CitationOrtiz-Villajos, 'La Sociedad Anglo-Española', 452–453). 93.CitationArroyo, 'Tècnics', 69. 94.CitationCimoli et al., Innovation, 12. 95.CitationMacLeod et al., 'Evaluating Inventing', 560. 96.CitationCimoli et al., Innovation, 8. 97.CitationLevin et al., Survey Research, 33. 98.CitationCimoli et al., Innovation, 22. 99. 'A country's potential for rapid growth is strong not when it is backward without qualification, but rather when it is technologically backward but socially advanced' (CitationAbramovitz, 'Catching Up', 388).100. Crossley Engines is still in service, although after being acquired by Rolls-Royce in 1988, it became a division of Rolls-Royce Power Engineering Group (CitationEyre et al., Crossley, 48).Additional informationNotes on contributorsJosé M. Ortiz-VillajosJosé M. Ortiz-Villajos is a Lecturer in Economic History at the Complutense University of Madrid.