Technological innovation
Technological progress meant: production increased, lower production costs, therefore lower prices. This led to more sales and greater benefits.
Machines were powered by human force until hydraulic power was introduced (like in watermills and fulling mills). But the real change came when James Watt invented the steam machine in 1769, it was fuelled by coal and it became the most visible symbol of the Industrialization.
The firsts steam machines brought about the existence of the factories and to a new way to produce goods, the factory system. The production took place in big industrial buildings with machines operated by workers who spent the journey at one task, this was called division of labour, the artisan became worker and lost his connexion with the goods they produced.