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Since its first appearance in Europe in ancient times, silk has been considered a magnificent product full of mystery. Growing attempts to bring this highly lucrative product to Europe generated increasing levels of insight and expertise about its fabrication. Knowledge about the mulberry plant, the silkworm and the reeling of cocoons was transmitted from ancient China initially by the caravans and subsequently by missionaries. As Europe moved from the importation of silk products fabricated in China to the establishment of its own silk industry, the direction of the transfer of technology used to be from China to Europe. However, following the age of industrialization in the West from the middle of the nineteenth century onwards, the direction of the process of technological transfer was reversed. In the French silk industry, a series of technical innovations enabled the mechanization of the silk production, which subsequently led to institutional evolution to meet the demand of mass production. Improved productivity, growing consumption and the cocoons crisis of the 1850s led to the development of a trade route to the Far East to supply raw silk. This was further facilitated by developments in terms of communication and transportation. Reeling machines and institutions were also introduced to China to boost the productivity of its silk industry. Such technological and managerial transfers could have proven beneficial for the silk industry in China but a complex interaction of internal and external factors combined in a way that ultimately blocked the industry’s development.