Developmental psychology and cultural evolution are concerned with the same research questions but rarely interact. Collaboration between these fields could lead to substantial progress. Developmental psychology and related fields such as educational science and linguistics explore how behavior and cognition develop through combinations of social and individual experiences and efforts. Human developmental processes display remarkable plasticity, allowing children to master complex tasks, many which are of recent origin and not part of our biological history, such as mental arithmetic or pottery. It is this potency of human developmental mechanisms that allow humans to have culture on a grand scale. Biological evolution would only establish such plasticity if the combinatorial problems associated with flexibility could be solved, biological goals be reasonably safeguarded, and cultural transmission faithful. We suggest that cultural information can guide development in similar way as genes, provided that cultural evolution can establish productive transmission/teaching trajectories that allow for incremental acquisition of complex tasks. We construct a principle model of development that fulfills the needs of both subjects that we refer to as Incremental Functional Development. This process is driven by an error-correcting mechanism that attempts to fulfill combinations of cultural and inborn goals, using cultural information about structure. It supports the acquisition of complex skills. Over generations, it maintains function rather than structure, and this may solve outstanding issues about cultural transmission. The presence of cultural goals gives the mechanisms an open architecture that become an engine for cultural evolution.