The liberalisation of production probably came about due to changes in the feudal system.
Land holdings, kept on being chopped into smaller pieces, despite the rules of primagenacy, so that income in the land owning classes was static or even declining.
Many manorial holdings were based upon serfdom, but to encourage a differant form of economy, incentives were provided in the form of freeholdings, which of course meant an increase in freedmen whose livelihoods were not tied directly to land.
It became quite the fashion to create ‘new townships’ within the old manorial holdings, these would allot a strip of land - a burgage plot, for rent with perhaps a smallholding for a vegatable allotment, sometimes attached to the burgage, and sometimes a short distance away. These burgage holders were not subject to the same obligations that were a feature of feudalism, they were exempted the various duties, instead they paid a rent.
These ‘burghers’ were also not subjected to the same administration system, including the manorial courts.
Various towns in England have their main roots in these changes, some burgages were far more liberal than others, but it must have been inspired by the increasing granting of market charter status to many small settlements which drew in greater populations and hence more demend and thus more money.
This really is how merchant trading spread throughout the shires, rather than a few cities, and this created the markets which drove demand.
Quite how manufacturing took off is the point to debate, certainly huge a improvement in investment and shipping must have been important, the London coffee houses are testament to all that.
Cloth manufacture which could compete with the products from other countries would not have happened had it not been for the importation (one way or another) of the Merino sheep, this was done under very spurious circumstances as Spain protected this breed of sheep very jealously.
Once the English had their sheep, why did cloth manufacture take off so much better than in Spain ?- after all, Spain had had the cloth trade to itself for quite some time and had a head start.
The manufacture of textiles was probably the main turning point toward the industrial revolution, it was based first on hand looms, then on water power before moving on to steam.
Perhaps Spain did not have the combination of entrepreneurial spirit, the expansion fo the British empire would have provided a ready market, just as Spains empire was declining, ironicaly, one of the more significant markets was the Americas, before during and after the war of independance.
The industrial revolution predated the use of steam, but once it was available, the presence of cheap coal would have been a critical factor, land wars in Europe would have been detrimental to industrial growth, and Britain for much of the 17thC-18thC was pretty much unmolested and would have been a far more stable place for investor confidence.
I don’t think one can say that technology or science led to industry so much as it became integral, as soon as you start industrial production methods, you are presented with problems that need to be overcome using novel solutions, once you find a method of resolving technical issues, than you begin to ask more and more questions - perhaps a more liberal religious dogma also helped.