Quote from Technology in Great Power Competition: Matrix theory

The amplification of national power through technology operates through three distinct mechanisms of increasing importance. At the foundational level, first-mover advantage provides initial benefits from early technological adoption. The British textile industry's early mechanization in the late 18th century exemplifies these baseline advantages. While Britain gained immediate benefits from increased productivity and established initial technical standards, these advantages proved relatively transient as other nations eventually adopted and improved upon the technology. First-mover advantage, while significant for establishing initial positions, typically represents the most basic level of technological amplification.[1]

Moving up the hierarchy, cascade effects generate more substantial power amplification through chain reactions of innovation and development. The Dutch maritime technological revolution of the 16th century demonstrates this intermediate level of impact. Initial advances in shipbuilding triggered cascading developments in navigation, cartography, and maritime commerce. These cascade effects transformed not only naval capabilities but also trading systems, financial instruments, and administrative practices. The Dutch fluty ship design, for instance, triggered improvements in port facilities, cargo handling systems, and maritime insurance practices, creating what Jonathan Israel defined technological cascade that enhanced multiple domains of national power simultaneously.[2]

At the highest level of impact, asymmetric value generation creates disproportionate returns that fundamentally alter power relationships between states. The German chemical industry's development in the late 19th century exemplifies this supreme form of power amplification. Relatively modest investments in organic chemistry research yielded disproportionate returns across multiple domains: military capability, economic power, and diplomatic influence. By 1914, German firms controlled over 80% of the global chemical market, but more importantly, their technological edge provided leverage far exceeding the scope of the chemical industry itself. This asymmetric advantage enabled Germany to influence international relations, shape industrial development patterns, and establish technological dependencies that persisted for decades.[3]

[1] Landes, David S. The Unbound Prometheus: Technological Change and Industrial Development in Western Europe from 1750 to the Present.Cambridge University Press, 1969.

[2] Israel, Jonathan. Dutch Primacy in World Trade, 1585-1740. Oxford: Clarendon Press, 1989.

[3] Murmann, Johann Peter. Knowledge and Competitive Advantage: The Coevolution of Firms, Technology, and National Institutions. Cambridge University Press, 2003.