This chapter explores the interaction between technological innovation and the global spread of capitalism from 1848 to 2005. It then examines the interaction of technological innovation, the global spread of capitalism, and the varied ability of nations to "catch up" with the technological and economic leaders in the world economy during this period of more than 150 years. Technology is the integration of knowledge, organization, and technique, directed towards material transformations. The importance of incremental innovation underscores the complex relationship between the appearance of a new technology and its adoption. Innovation in transportation and communications technologies was essential to the growth of domestic and international commerce during the period between 1870 and 1914. The rise of industrial capitalism also changed the process of innovation itself. Government policies exerted a direct and indirect influence on innovation in the post-1850 world. Innovation was spurred by the growth of capitalism, but technology had powerful effects on the global spread of capitalism.