This article reexamines theories previously advanced to explain Lancashire'
s slow adoption of ring spinning. New cost estimates show that although add
itional transport costs and technical complementarities reduced ring adopti
on rates, these supply-side constraints were not dominant. Instead what mat
tered most were demand-side factors. Lancashire produced far more fine yams
than other countries, and this yam was better spun on mules. Furthermore,
Lancashire had a sizeable export trade in yarn, a market again more suited
to mule spinning. Low ring adoption rates were thus a rational response to
demand patterns dominated by high-quality goods.