Inertia
Albert Einstein's theory of special relativity, as proposed in his 1905 paper entitled "On the Electrodynamics of Moving Bodies" was built on the understanding of inertia and inertial reference frames developed by Galileo and Newton. While this revolutionary theory did significantly change the meaning of many Newtonian concepts such as mass, energy, and distance, Einstein's concept of inertia remained unchanged from Newton's original meaning (in fact, the entire theory was based on Newton's definition of inertia). However, this resulted in a limitation inherent in special relativity: the principle of relativity could only apply to reference frames that were "inertial" in nature (meaning when no acceleration was present). In an attempt to address this limitation, Einstein proceeded to develop his general theory of relativity ("The Foundation of the General Theory of Relativity," 1916), which ultimately provided a unified theory for both "inertial" and "noninertial" (accelerated) reference frames. However, in order to accomplish this, in general relativity, Einstein found it necessary to redefine several fundamental concepts (such as gravity) in terms of a new concept of "curvature" of space-time, instead of the more traditional system of forces understood by Newton.
History of special relativity
As was explained above, already in 1895 Lorentz succeeded in deriving Fresnel's dragging coefficient (to first order of v/c) and the Fizeau experiment by using the electromagnetic theory and the concept of local time. After first attempts by Jakob Laub (1907) to create a relativistic "optics of moving bodies", it was Max von Laue (1907) who derived the coefficient for terms of all orders by using the colinear case of the relativistic velocity addition law. In addition, Laue's calculation was much simpler than the complicated methods used by Lorentz.