The watch was first created in the 16th century, initially in spherical (Pomander) or cylindrical cases, when the spring driven clock was invented. These watches were at first quite big and boxy and were worn around the neck. It was not for another century that it became common to wear a watch in a pocket.
Until the second half of the 18th century, watches were luxury items; as an indication of how highly they were valued, English newspapers of the 18th century often include advertisements offering rewards of between one and five guineas merely for information that might lead to the recovery of stolen watches. By the end of the century, however, watches (while still largely hand-made) were becoming more common; special cheap watches were made for sale to sailors, with crude but colourful paintings of maritime scenes on the dials.
Up to the 1720s, almost all watch movements were based on the verge escapement, which had been developed for large public clocks in the 14th century. This type of escapement involved a high degree of friction and did not include any kind of jewelling to protect the contacting surfaces from wear. As a result, a verge watch could rarely achieve any high standard of accuracy. (Surviving examples mostly run very fast, often gaining an hour a day or more.) The first widely-used improvement was the cylinder escapement, developed by the Abbé de Hautefeuille early in the 18th century and applied by the English maker George Graham. Then, towards the end of the century, the lever escapement (invented by Thomas Mudge in 1759) was put into limited production by a handful of makers including Josiah Emery (a Swiss based in London) and Abraham-Louis Breguet. With this, a domestic watch could keep time to within a minute a day. Lever watches became common after about 1820, and this type is still used in most mechanical watches today.
Broadly speaking, the French were the leading watchmakers of the 17th century, the English of the eighteenth and early nineteenth, the Americans of the later nineteenth and early twentieth, and the Swiss thereafter.
By the middle of the 19th century, watch manufacture was becoming streamlined; the Japy family of Schaffhausen, Switzerland, led the way in this, and soon afterwards the new-born American watch industry developed much new machinery, so that by 1865 the American Watch Company (afterwards known as Waltham) could turn out more than 50,000 reliable watches each year. This development drove the Swiss out of their dominating position at the cheaper end of the market, compelling them to raise the quality of their products and establish themselves as the leaders in precision and accuracy instead.