Chapter Thirty-One: Investment in Technology

In 1893, one million eight hundred thousand Imperial Marks was a considerable sum. Although Von Chengqian had long thought about how to spend this money, when he began to make arrangements, he realized that one million eight hundred thousand Imperial Marks was simply not enough to distribute. Starting from the navy, the three most important technologies were steam turbines, large-caliber long-barreled artillery, and armored steel. However, Von Chengqian could not focus solely on the navy. As a land power, the foundation of the Imperial Navy lay in the army; if the army was defeated, the Imperial Navy would lack a basis for victory. Therefore, Von Chengqian had to consider the situation more comprehensively.

So, what were the key technologies? Von Chengqian was not concerned with guns, tanks, or warships, but rather with a significant invention that was still not widely recognized: the internal combustion engine. Initially, Von Chengqian had grander ideas, such as developing air power. It is important to note that by the end of the nineteenth century, although balloons had been invented, the dream of flying in the sky using aerodynamic lift remained unfulfilled. He understood very well that the internal combustion engine would be the first step for humanity to take flight. With the internal combustion engine, manufacturing airplanes would not be a difficult task. However, after gaining a deeper understanding of the technological landscape of his time, Von Chengqian decisively abandoned the idea of manufacturing airplanes and even constructing aircraft carriers. The existence of the internal combustion engine did not equate to the existence of airplanes.

Von Chengqian knew that the internal combustion engine was important and represented a significant advancement in human power technology, but he did not understand the internal combustion engine itself and was even unaware of its operating principles. The reason was simple: in his time, the internal combustion engine had already been phased out, and flying machines no longer relied on wing-generated lift. The knowledge he possessed was insufficient to create an airplane; he still had to rely on the engineers and scientists of his era.

This was the crux of the issue. After conducting thorough investigations, Von Chengqian had to admit that not only in the German Empire but even globally, there was no engineer or scientist capable of producing an airplane. Technological advancement was a gradual process, and no matter how impatient Von Chengqian was, he could not rush it. Based on his understanding of history, the internal combustion engine was undoubtedly one of the most important inventions of the late nineteenth century and a technology with profound implications.

In early 1893, the first thing Von Chengqian did was allocate two hundred thousand Imperial Marks to establish the "Imperial Science and Technology Advancement Reward and Support Fund," specifically aimed at various scientific inventions, providing financial assistance to engineers and inventors in need. What he did not anticipate was that this move garnered enormous praise from the industrial sector of the Empire.

Once again, the entrepreneur advocating for the construction of the Middle East Railway approached him. Karl’s visit did not surprise Von Chengqian. The late nineteenth and early twentieth centuries marked the first technological revolution following humanity’s entry into the industrial age, driven by profit-seeking capitalists.

"Mr. Karl means to say..."

"The establishment of the technology fund by the count aligns perfectly with our interests; however, it may be a bit challenging for the count to handle alone," Karl paused slightly, smiling as he continued, "So I mean, if the count does not mind, I could contact other entrepreneurs to contribute to the fund."

"Your willingness to contribute is commendable, but it cannot be that simple, can it?"

"The count is a straightforward person, so I will not beat around the bush." Karl paused again, seemingly gauging any change in Von Chengqian’s expression. "We are entrepreneurs and businessmen; our willingness to invest is naturally for the sake of returns. What I mean is that the results of the projects supported by the fund should be shared among the investors, rather than being monopolized by any single company or institution."

"That is also my thought," Von Chengqian smiled, without revealing his innermost thoughts.

"However, has the count considered how such significant investments can be sustained?"

"Mr. Karl specifically came to discuss this matter?" Von Chengqian smiled again, guessing Karl's intentions with reasonable accuracy. Research investments were indeed substantial, and achieving returns on even one out of ten investments would be considered good. Large investments implied large returns. Even a return of just one-tenth could yield substantial profits, which was precisely what Karl and other entrepreneurs cared about.

Karl's intentions were clearly not about technology sharing but rather about controlling technology through the science fund.

"It seems the count understands my point; thus, I will be more straightforward." Karl was a clever man and naturally picked up on Von Chengqian's insinuation. "Establishing a science fund to help the Empire develop its technological capabilities is a long-term vision, but it requires significant investment. One moment of enthusiasm cannot accomplish great things, and the Empire's government cannot afford to spend such large sums annually to support research. My suggestion is to take this opportunity to form a consortium that operates on a principle of 'who invests, who benefits,' encouraging entrepreneurs to invest."

"Ultimately, it is still self-serving."

Karl's brow twitched slightly, probably embarrassed by Von Chengqian's blunt observation.

"There's nothing wrong with thinking of oneself, as long as it does not conflict with the interests of the Empire," Von Chengqian smiled. "I will seriously consider your suggestion and provide you with a clear response. Mr. Karl must understand that my primary responsibility is to serve His Majesty the Emperor."

"The count's consideration for the Empire and His Majesty will surely lead to a wise choice."

Von Chengqian did not say anything further and had Schmidt escort Karl out. It was clear that Karl was a spokesperson for the Empire's industrial sector, and through the technology fund, he could certainly bring enormous benefits to many entrepreneurs in the Empire.

In fact, even without Karl's approach, Von Chengqian would have actively sought out the titans of the Empire's industry. At the very least, he was aware of several well-known entrepreneurs, such as Benz, who produced the first automobile, Siemens, who founded an electrical company, as well as Messerschmitt, Chase, and others. Providing substantial assistance to these entrepreneurs would surely help them achieve even greater accomplishments.

Building relationships with these entrepreneurs of the German Empire was also immensely beneficial for Von Chengqian’s grand vision. However, he was also concerned that if the capitalists of the German Empire were to unite, they might become an uncontrollable force. If that were the case, it could lead to extremely serious consequences. In pursuit of profit, capitalists would resort to any means to instigate wars, ultimately driving the German Empire to the brink of destruction.

Von Chengqian had a profound understanding of this, for in his own time, the "Apocalyptic War" was initiated by profit-driven capitalists, resulting in the annihilation of all human civilization, leaving Von Chengqian as the sole survivor who arrived in this era.

One must utilize entrepreneurs without being used by them.

When Karl approached him, Von Chengqian had not yet devised a complete strategy, so he did not express a clear stance and only provided a vague response. After much consideration, he decided to temporarily set this matter aside.

The reason was simple: his influence was not yet substantial enough to command the Empire's entrepreneurs, and involving Bismarck would only complicate matters.

Having spent two hundred thousand, there remained one million six hundred thousand Imperial Marks.

Von Chengqian had also planned for this money. Relatively speaking, the technological level of the German Empire was far behind that of older empires like Britain and France. For instance, in the history familiar to Von Chengqian, the German Empire produced steam turbines about ten years later than Britain and even several years later than France.

For the Empire, this was both a bad and a good thing. The downside was that, in foundational technology, the Empire was far inferior to its competitors, which was why Von Chengqian established the technology support fund with two hundred thousand Imperial Marks.

The upside was that as a latecomer, the Empire could learn from the experiences of other countries and avoid taking detours. Therefore, Von Chengqian decided to directly import advanced technologies from other countries.

Given that Anglo-German relations had not deteriorated to the point of armed conflict, he focused on Britain, intending to spend heavily to import some advanced technologies. As for which technologies to purchase, that was entirely at Von Chengqian's discretion.

However, not all technologies could be bought with money. For example, a hostile nation like France would not sell advanced technologies to the German Empire.

To address this, Von Chengqian decided to establish a secret organization, as per Friedrich III's directive, specifically to steal technology from the Empire.

At that time, Von Chengqian was particularly interested in the smokeless powder invented by the French chemist Vielle. After two years of effort, the agents he arranged obtained the chemical formula for smokeless powder and even secured some samples from Vielle's laboratory. By 1893, several chemical factories in the German Empire were capable of producing this high-performance explosive.

Von Chengqian did not rush to publicize this, nor did he allow the factories to begin mass production. The Empire had not yet expanded its military preparations, and there was no immediate need to implement these measures specifically designed for war, nor to allow enemy nations to catch up right away. It should be noted that the French Army had not yet adopted ammunition using smokeless powder.

Of course, smokeless powder was just one example. For the Imperial Navy, the key technologies remained steam turbines, long-barreled large-caliber artillery, and armored steel, which were also the focus of Von Chengqian's research investments. In 1893 alone, he invested eight hundred thousand Imperial Marks in these three technologies.

However, the confidentiality efforts were exceptionally well executed. At the time, Von Chengqian recorded the expenditures for research under various military preparedness projects, so the outside world only knew that the Empire was increasing its investment in the navy, without understanding how the hundreds of millions of Imperial Marks allocated to naval military spending were actually spent—even Bismarck was largely unaware.

Consequently, the relationship between Von Chengqian and Bismarck deteriorated sharply. In Bismarck's view, Von Chengqian was acting unilaterally within the Imperial Navy War Department, not merely for the sake of the navy but to seek a higher position.

Von Chengqian did not consider all of this too deeply; in his view, gaining the trust of the Kaiser was sufficient.