• German regions with higher steam engine density in 1875 have 4.6% higher wages today.
• Nearly 50% of this wage premium comes from more productive firms.
• These regions show sustained innovation — more patents both historically (1877–1918) and today (1980–2014).
• German regions with higher steam engine density in 1875 have 4.6% higher wages today.
• Nearly 50% of this wage premium comes from more productive firms.
• These regions show sustained innovation — more patents both historically (1877–1918) and today (1980–2014).