With the advent of industrialization from the mid 18th century the developing German economy required highly skilled craftsmen to be trained. To support this need for technical skills, the government invested in developing schools for trades, secondary schools and technical colleges.

To further this aim, Markgraf Karl Friedrich, the governor of Baden, commissioned the watchmaker François Autran to establish a watch factory in an orphanage. By teaching the orphans a valuable trade it would give them economic independence. In a document dated 6th April 1767 the Governor laid the foundation for the watch industry in Pforzheim.

Shortly afterwards the master watch maker Jean Viala was engaged to lead manufacturing. The orphanage was organised into 'Kabinettes' small teams which operated independently each specialising in different areas of manufacturing. From these Kabinettes the first watch factories developed in Pforzheim - as early as 1770 - initially only making pocket watches, but later clocks as well.

By the beginning of the 20th Century Pforzheim was recognised worldwide as an important centre of jewellery and watch making.