The feudalistic system dominated Europe until what is known as the capitalist system took control. Maybe the biggest reason capitalism was developed in Europe is colonialism. The colonial system is considered the back bone of the economic capitalism that invaded Europe. The force and materials extracted from the colonies around the world, resulted in great wealth for the ancient continent as well in the creation of the free market, the spinal cord of any capitalist system.The merchants that accumulated wealth through commerce, started to invest their money in productive technology to grow their businesses.