SummaryThe collapse of states c.1200 BC in the east Mediterranean is one of the best‐known socioeconomic crises of the ancient world. The period also witnessed notable innovation in a range of cultural spheres. The more general historical relationship between crisis and innovation can be productively explored using the increasingly detailed data available on this period and region, including case studies like the present one. This focuses on the north Lasithi area of east Crete in connection to recent archaeological work there, particularly at the site of Karphi and on its finds. It is contextualized in terms of the wider Mediterranean crisis context and the particular cultural responses seen in the Aegean. The paper explores the cultural contexts and outcomes of state collapse in ways which can help to interrogate received general models of historical innovation drivers. Does crisis in fact tend to produce technological regression and simplification, as elites disappear and complex sociopolitical systems break down? Do crisis‐spurred population movements have a direct role in transforming technology? Alternatively (or at the same time) does crisis provide a freed‐up social and economic space in which latent local innovation can emerge? In the multi‐context approach to interpreting cultural change adopted here, spheres of technological innovation which have already been intensively studied for the relevant period (e.g. iron introduction) are assessed from new angles, and less‐discussed/‐researched innovations (e.g. in textile making) are explored at a detailed scale through the case study, allowing evaluation of potential cross‐stimulus between different innovation spheres in the context of crisis.