Birmingham, United Kingdom

The development of Birmingham into a significant urban and commercial centre began in 1166, when the Lord of the manor Peter de Bermingham obtained a charter to hold a market at his castle, and followed this with the creation of a planned market town and seigneurial borough within his demesne or manorial estate, around the site that became the Bull Ring. This established Birmingham as the primary commercial centre for the Birmingham Plateau at a time when the area's economy was expanding rapidly, with population growth nationally leading to the clearance, cultivation and settlement of previously marginal land. Within a century of the charter Birmingham had grown into a prosperous urban centre of merchants and craftsmen. By 1327 it was the third-largest town in Warwickshire, a position it would retain for the next 200 years.

The principal governing institutions of medieval Birmingham – including the Guild of the Holy Cross and the lordship of the de Birmingham family – collapsed between 1536 and 1547, leaving the town with an unusually high degree of social and economic freedom and initiating a period of transition and growth.

The importance of the manufacture of iron goods to Birmingham's economy was recognised as early as 1538, and grew rapidly as the century progressed. Equally significant was the town's emerging role as a centre for the iron merchants who organised finance, supplied raw materials and traded and marketed the industry's products. By the 1600s Birmingham formed the commercial hub of a network of forges and furnaces stretching from South Wales to Cheshire and its merchants were selling finished manufactured goods as far afield as the West Indies. These trading links gave Birmingham's metalworkers access to much wider markets, allowing them to diversify away from lower-skilled trades producing basic goods for local sale, towards a broader range of specialist, higher-skilled and more lucrative activities.

By the time of the English Civil War Birmingham's booming economy, its expanding population, and its resulting high levels of social mobility and cultural pluralism, had seen it develop new social structures very different from those of more established areas. Relationships were built around pragmatic commercial linkages rather than the rigid paternalism and deference of feudal society, and loyalties to the traditional hierarchies of the established church and aristocracy were weak. The town's reputation for political radicalism and its strongly Parliamentarian sympathies saw it attacked by Royalist forces in the Battle of Birmingham in 1643, and it developed into a centre of Puritanism in the 1630s and as a haven for Nonconformists from the 1660s.

By 1700 Birmingham's population had increased fifteen-fold and the town was the fifth-largest in England and Wales. The 18th century saw this tradition of free-thinking and collaboration blossom into the cultural phenomenon now known as the Midlands Enlightenment. The town developed into a notable centre of literary, musical, artistic and theatrical activity; and its leading citizens – particularly the members of the Lunar Society of Birmingham – became influential participants in the circulation of philosophical and scientific ideas among Europe's intellectual elite. The close relationship between Enlightenment Birmingham's leading thinkers and its major manufacturers – in men like Matthew Boulton and James Keir they were often in fact the same people – made it particularly important for the exchange of knowledge between pure science and the practical world of manufacturing and technology. This created a "chain reaction of innovation", forming a pivotal link between the earlier Scientific Revolution and the Industrial Revolution that would follow.

Birmingham's explosive industrial expansion started earlier than that of the textile-manufacturing towns of the North of England, and was driven by different factors. Instead of the economies of scale of a low-paid, unskilled workforce producing a single bulk product such as cotton or wool in large, mechanised units of production, Birmingham's industrial development was built on the adaptability and creativity of a highly paid workforce with a strong division of labour, practising a broad variety of skilled specialist trades and producing a constantly diversifying range of products, in a highly entrepreneurial economy of small, often self-owned workshops. This led to exceptional levels of inventiveness: between 1760 and 1850 – the core years of the Industrial Revolution – Birmingham residents registered over three times as many patents as those of any other British town or city.