[I]t was the inner elite (the general staff) of one of the most caste-bound and privileged officer corps in Europe—the Prussian—that was the first to… - Correlli Barnett

[I]n the course of the first half of the nineteenth century a moral revolution was completed in England; a revolution which was in the long term to exercise decisive influence on the shaping and conduct of English foreign policy. It is indeed in the transformation of the British character and outlook by this moral revolution that lies the first cause, from which all else was to spring, of the British plight in 1940. The revolution had begun to gather momentum in the late Georgian age; a peculiarly English manifestation of the romantic movement common to all Western Europe. The essence of romanticism was to value feeling above calculation or judgement. Romanticism exalted sentiment – soon crudened into sentimentality – over sense... For the first time since the doctrinaire seventeenth century a concern for principle had begun to manifest itself in politics by the early part of George III's reign, when, for example, the war against the rebellious American colonies was denounced by politicians like Burke as unjust as well as unwise... After 1793 Charles James Fox attacked the war with revolutionary France as being an attempt to crush a noble experiment in human liberty rather than the parrying of a national danger. Radicals of the day, like Samuel Whitbread, the brewer MP, were even more passionately moralistic in denouncing English policy and excusing French actions, thereby setting a pattern of emotional response to be followed by the romantic left of politics down to the present day.

In 1890 there were still twice as many academic chemists in Germany as in Britain, though the British population was three-quarters of the German figure. In 1892 Britain had 287 academic staff in mathematics, science, and engineering compared with 452 in Germany. In engineering in particular the major German technical high schools had 7,130 students in 1901 against a total of 1,443 in British universities. In terms of overall university provision, Britain spent £26,000 in government grants in 1897, while Germany spent £476,000; in 1902 Germany had 22 universities for a population of 50 million, England and Wales 7 for 31 million.
And...British industry still lagged badly in advanced industries like chemicals, electricals, and machine tools, and even in basics like steel—partly because of a continuing lack of trained personnel at all levels (the "practical man" still failing to recruit enough of them). Britain's annual rate of growth in the years 1880–1900 averaged 1.7 per cent against Germany's 5.3 per cent and America's 4.5 per cent. Britain's own rate of growth in industrial production was also declining—from 33 per cent in the decade of the 1860s to 24 per cent in the 1890s and 9 per cent in the 1900s.

Now...came a further threat to the power of employers (no longer "masters"): the arrival of national trade unions or federations of unions. So the employers too began to organise themselves on an industry-wide scale. Their purpose was well expressed by Colonel Dyer, the American leader of the Federation of Engineering Employers (founded in 1896), in respect of his own industry. It was "to obtain the freedom to manage their own affairs which has proved so beneficial to the American manufacturers as to enable them to compete...in what was formally an English monopoly..." Just how far that freedom had been cumulatively shackled by the past step-by-step gains of the trade unions was revealed by books and newspaper campaigns urging Britain to "wake up" to German and American competition. In 1894 appeared the bestselling British Industries and Foreign Competition. In 1896 followed a "Made in Germany" press panic, on publication of a book under that title. In 1901 the Daily Mail followed a Daily Express series entitled "Wake up England!" with its own on "American Invaders". In 1900–1901 The Times, governing-class opinion incarnate, ran major articles on "The Crisis in British Industry" and "American Competition and Progress". Technical journals critically examined the efficiency of particular industries. All exposed British owners and managers as now widely old-fashioned in outlook, lethargic in action, and smug. But also fully explored was the opposition of the unions to new machines and new methods; the shackling effect of union restrictive practices on efficiency and productivity.