The purpose of this essay is revisionist on two counts: first, that the American colonies and early United States republic kept pace with Great Britain in reaching a relatively advanced stage of industrialization by the early nineteenth century and second, that the Middle Atlantic States shared equally with New England the innovative role in creating America's industrial revolution. In both cases the industrial leaders achieved their preeminence by different routes. By concentrating on the importance of the sources of machine power as the defining characteristic of industrialism, scholars have overlooked alternative paths to industrial change. In Britain steam power and the textile industry were the foundations of an industrial revolution. But in American colonies the use of water power and the growth of industries such as woodworking and building led to an equally revolutionary change in the production of machine-made products. Benign geography in colonial America provided abundant wood and water power and an excellent transportation system based on navigable rivers and a hospitable coastline. But the crucial factors were cultural: the compelling urge to do things with less human work, the open reception to new immigration, a younger and more venturesome population, a favorable legal and fiscal environment for enterpreneurs. In the American context the tendency of scholars to emphasize the leadership of New England was largely a result of the greater local availability of manufacturing records. But recent research has demonstrated that Philadelphia, the largest port of entry in the eighteenth century, was quite naturally a center of innovation in construction materials, woodworking machinery and shipbuilding to meet the needs of the expanding agricultural hinterland and the coastal trade. In sum, the values of an expanding, youthful, skilled population replenished by fresh and venturesome sources from abroad helped shape cultural values that were particularly favorable in the geographic environment of North America for alternative paths of rapid industrial growth.