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James Watt (1736-1819), a Scottish inventor, while repairing a Newcomen steam engine, he devised improvements that resulted in a new type of engine (patented in 1769) with a separate condensing chamber, an air pump to bring steam into the chamber, and insulated engine parts. The addition of the "Governor" (lower right), his work on perfecting a rotary engine, and his coining the term "horsepower" all were the technological enablers of the Industrial Revolution. The following years where dramatic changes in the social and economic structure took place as inventions and new technology created the factory system of large-scale machine production and greater economic specialization.

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