Chapter 113: The Industrial Chain and Market
Mirabeau carefully considered the Crown Prince's words, connecting them to France's current situation, and his expression gradually grew solemn. "Your Royal Highness, the most advanced steam engine technology is currently in British hands. We can only replicate products from more than a decade ago."
"Oh, and I heard that not long ago, the British built a new steam engine that boasts over ten horsepower."
"You're absolutely right," Joseph nodded. "That's precisely why I need to establish industrial development zones as quickly as possible, to attract capital and talent, and invest in the research and development of new technologies."
Mirabeau's voice held a hint of despondency. "I wonder if we can still catch up..."
Joseph's face broke into a confident smile. "You must have faith. We are merely lagging behind for the moment."
"Once we establish a foundational industrial chain and form a virtuous cycle of industry, technological breakthroughs will be an inevitable outcome."
Mirabeau looked puzzled again. "Your Royal Highness, what exactly do you mean by 'industrial chain' and 'virtuous cycle'?"
"My apologies, I spoke too quickly," Joseph said, waving his hand. "An industrial chain refers to a series of interconnected industries involved in the development of a particular sector, all linked together to form a chain."
Mirabeau was a crucial figure who could help Joseph advance France's industrial development, so Joseph patiently explained the relevant concepts and ideas to him.
"These small tools are, in fact, a link in the textile industrial chain. Similarly, this chain includes the washing and storage of raw materials like cotton and wool, the manufacturing and repair of looms, the construction of workshops, the transportation and sale of products, and even the recycling of waste materials."
"All of these elements combined constitute the industrial chain of the textile industry."
"Only when the entire chain develops robustly can a powerful textile industry emerge. Previously, we neglected this industrial chain, mistakenly believing that simply acquiring a few looms would allow us to catch up with Britain's textile industry."
Mirabeau felt as if the clouds had parted and the sun shone through, and he nodded repeatedly. "So, we spent a lot of money, but our textile industry has always been suppressed by the British. It turns out these seemingly trivial things beyond the looms are what we truly lack!"
Joseph thought, 'He's truly a sharp mind, perfect for this revolutionary age; he grasps things instantly.'
He continued, "Therefore, if we want to develop the steam engine industry, we must prioritize the industrial chain from the very beginning."
"This starts with the fundamental mining and transportation of coal and iron ore, then moves to workshops for manufacturing basic measuring tools, workshops for printing blueprints and documents, and workshops for setting up testbeds."
"It gradually transitions to building workshops for producing small parts, foundries for casting machine blanks, and ultimately, workshops for assembling entire steam engines."
"Finally, there are all the supporting industries, such as steam engine sales, maintenance, and on-site assembly."
"Only with all these elements will we truly possess the capability to manufacture steam engines. Otherwise, even if we can copy Britain's latest models, we will inevitably be left far behind by the British again."
While Joseph spoke, Mirabeau had already instructed a servant to bring him paper and pen, and he began to record everything intently and swiftly. These concepts were utterly new to him, ideas he had never heard or considered before, opening a door to a new world in his mind.
It was a world named "Industrialization."
Joseph waited for him to stop writing before continuing, "The industrial chain is the foundation of industry, but for an industry to truly flourish, it also requires an 'industrial cycle'."
"Simply put, it's the process of 'capital – production – market – capital recovery'."
"Actually, that's not quite accurate. The true starting point for industry should be the market. The market generates the impetus for production, which in turn attracts capital investment..."
What he spoke of would be almost common knowledge in later eras, but at this moment, barely more than a decade had passed since Adam Smith penned *The Wealth of Nations*. The understanding of capital operation was still limited to basic concepts, far from the refined and practical ideas of the future.
Joseph elaborated on these issues in detail, concluding:
"Therefore, for industrial sectors, the market is always paramount. As long as the market is large enough and profits are high enough, regardless of other obstacles, the corresponding industry is bound to develop."
Mirabeau frowned. "Your Royal Highness, France doesn't have many mines that require pumping, nor do we have automatic looms... The market for steam engines seems rather small."
Joseph shook his head. "There are many markets we need to uncover."
"For example, everyone currently uses hydraulic mills and hydraulic pressing mills. If these were driven by steam engines instead, efficiency would increase dramatically."
"Although we don't have many mines, we have numerous agricultural fields that require irrigation. If every village had one or two steam water pumps, it could increase arable land by a significant percentage and reduce crop losses during droughts."
"And the stamping machines I mentioned earlier; almost all metal manufacturing industries could utilize them."
He paused, then adopted a graver tone. "In truth, our market's greatest deficiency is purchasing power."
"Purchasing power?" Mirabeau just continued to scribble notes. He was numb to new terms by now.
"It refers to how much money people have available to buy products."
Mirabeau hesitated. "Your Royal Highness, the nobility still possesses considerable wealth..."
Joseph felt a touch of helplessness; Mirabeau had effectively filtered out the vast majority of the impoverished population from his consideration.
"That is far from enough. If everyone — and I mean everyone, from artisans to tenant farmers — had the money to purchase industrial products, *that* is the market truly needed for industrial development!"
He mused, 'Achieving all of this will require incredibly difficult reforms, as it will inevitably impact the interests of the Old Nobility.'
Mirabeau froze, then after a long moment, he nodded slowly and firmly. "You... you are absolutely right!"
The two conversed until five in the afternoon. Joseph felt he had covered the basic industrial concepts and prepared to take his leave. "However, industrial development must be set aside for now. My immediate focus is on the potatoes. Only when everyone is well-fed can we even begin to consider industry."
Mirabeau immediately spoke up. "Your Royal Highness, are you referring to purchasing potatoes? I have a friend who deals in grain and has extensive business in the northeastern provinces. I could ask him to assist you."
"I believe that if I guarantee it, he could acquire them for you on credit, and even transport them directly to your designated location."
Joseph was delighted. "That would be wonderful! Thank you so much, Count Mirabeau."
"It's nothing, Your Royal Highness," Mirabeau said, bowing slightly. "I hope I can contribute to the great undertaking you are planning."
...
The following day at noon.
A salon, initiated by Mirabeau, was being held at the luxurious villa of the Parisian socialite Madame Hébert.
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