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The Code

Page 59

by Margaret O'Mara


  15. Sidney Blumenthal, “Whose Side is Business On, Anyway?,” The New York Times, October 25, 1981, 29.

  16. Reagan, Proclamation 4829—Small Business Week, 1981, March 23, 1981; Reagan, “Remarks to the Students and Faculty at St. John’s University,” New York, March 28, 1985; Arthur Levitt Jr., “In Praise of Small Business,” The New York Times, December 6, 1981, 136; Leslie Wayne, “The New Face of Business Leadership,” The New York Times, May 22, 1983, B1; Don Oldenberg, “Entrepreneurs: The New Heroes?,” The Washington Post, July 2, 1986, D5.

  17. Levitt, “In Praise of Small Business”; William M. Bulkeley, “In Venture Capitalism, Few Are as Successful as Benjamin Rosen,” The Wall Street Journal, November 28, 1984.

  18. Ken Hagerty, “The Power of Grassroots Lobbying,” Association Management, November 1979, collection of Ken Hagerty, in possession of the author; Bacon, “Lobbyists Say Options Tax Break is Needed to Spur Innovation,” The Wall Street Journal, July 1, 1981, 27; Ken Hagerty, interview with the author, September 9, 2015, by phone.

  19. Edward Cowan, “The Quiet Campaign to Cut Capital Gains Taxes,” The New York Times, April 12, 1981, F8.

  20. Otto Friedrich et al., “Machine of the Year: The Computer Moves In,” Time, January 3, 1983; Jeanne Hayes, ed., Microcomputer and VCR Usage in Schools, 1985–1986 (Denver, Colo.: Quality Education Data, 1986), 7.

  21. Adam Smith, “Silicon Valley Spirit,” Esquire 96, no. 11 (November 1981): 13–14; Reyner Banham, “Down in the Vale of Chips,” New Society 56, no. 971 (June 25, 1981): 532.

  22. Moira Johnston, “High Tech, High Risk, and High Life in Silicon Valley,” National Geographic 162, no. 4 (October 1982): 459–77.

  23. Quoted in Michael Moritz, Return to the Little Kingdom: How Apple and Steve Jobs Changed the World (New York: The Overlook Press, 2009), 142.

  24. Smith, “Silicon Valley Spirit.”

  25. Mike Hogan, “Corporate Cultures Tell a Lot,” California Business, November 1984, 92–96.

  26. Margaret Comstock Tommervik and Craig Stinson, “Women at Work with Apples,” Softalk 1, no. 7 (March 1981): 44–50; Jennifer Jones, interview with the author, November 14, 2014, Woodside, Calif.

  27. Margaret Comstock Tommervik, “Exec Apple: Jean Richardson,” Softalk 1, no. 7 (March 1981): 42–43.

  28. C. W. Miranker, “What Makes Silicon Valley’s Workforce Mostly Non-Union,” Associated Press, December 24, 1983, Saturday AM cycle, retrieved from Nexis Uni.

  29. “What Makes Tandem Run,” BusinessWeek, July 14, 1980, 73–74; Smith, “Silicon Valley Spirit.”

  30. Fox Butterfield, “Two Areas Show Way to Success in High Technology,” The New York Times, August 9, 1982, 1. Also see David Lampe, ed., The Massachusetts Miracle: High Technology and Regional Revitalization (Cambridge, Mass.: The MIT Press, 1988).

  31. Newsweek, July 4, 1979; Carter, Speech to the Nation, July 15, 1979; McKenna, The Regis Touch, 28; Anthony J. Parisi, “Technology: Elixir for U.S. Industry,” The New York Times, September 28, 1980, F1.

  32. Moritz, Return to the Little Kingdom, 11; Time magazine, “Publisher’s Letter,” January 3, 1983.

  CHAPTER 15: MADE IN JAPAN

  1. Harry McCracken, “The Original Walkman vs. the iPod Touch,” Technologizer, June 29, 2009, https://www.technologizer.com/2009/06/29/walkman-vs-ipod-touch/, archived at https://perma.cc/P92F-3WTL; “Ubiquitous Walkman Celebrates First Decade,” The Los Angeles Times, June 21, 1989, C2.

  2. Peter J. Brennan, “Advanced Technology Center: Santa Clara Valley, California,” MO 443 Silicon Valley Ephemera Collection, Series 1, Box 1, FF 17, SU; Ben Rosen, “The Stock Market Looks Ahead—to the Golden Age of Electronics,” The Rosen Electronics Letter 80, no. 15 (August 22, 1980); Maggie Canon, “Stanford and Japan Form Joint Industry Study,” InfoWorld, November 24, 1980, 3.

  3. Canon, “Stanford and Japan.” For discussion of the Silicon Valley semiconductor industry’s response to Japanese competition, and Noyce’s leadership, see Leslie Berlin, The Man Behind the Microchip: Robert Noyce and the Invention of Silicon Valley (Oxford, U.K.: Oxford University Press, 2005), 257–80.

  4. Marco Casale-Rossi, “The Heritage of Mead & Conway,” Proceedings of the IEEE 102, no. 2 (February 2014): 114–19; Clair Brown and Greg Linden, “Offshoring in the Semiconductor Industry: Historical Perspectives,” IRLE Working Paper No. 120-05, University of California, Berkeley, 2005.

  5. Brennan, “Advanced Technology Center”; William Chapman, “High Stakes Race: Japanese Search for Breakthrough in Field of Giant Computers,” The Washington Post, February 27, 1978.

  6. Chalmers Johnson, MITI and the Japanese Miracle: The Growth of Industrial Policy, 1925–1975 (Stanford, Calif.: Stanford University Press, 1982); Judith Stein, Pivotal Decade: How the United States Traded Factories for Finance in the Seventies (New Haven, Conn.: Yale University Press, 2010).

  7. Thomas L. Friedman, “Silicon Valley’s ‘Underworld,’” The New York Times, December 3, 1981, B1; “Valley of Thefts,” Time, December 14, 1981, 66; D. T. Friendly and Paul Abramson, “In Silicon Valley, Goodbye, Mr. Chips,” Newsweek, May 12, 1980, 78.

  8. Regis McKenna, interviews with the author, December 3, 2014, and May 31, 2016.

  9. Hearings on H.R. 5805 “Chrysler Corporation Loan Guarantee Act of 1979,” Subcommittee on Economic Stabilization, Committee on Banking, Finance, and Urban Affairs, House of Representatives, Ninety-sixth Congress, First Session, October 19, 1979; Charles K. Hyde, Riding the Roller Coaster: A History of the Chrysler Corporation (Detroit: Wayne State University Press, 2003); Stein, Pivotal Decade.

  10. Johnson, “The Perils of Paradise”; Stone quoted in Susan Brown-Goebeler, “How Gray Is My Valley,” Time 138, no. 20 (November 18, 1991): 90.

  11. James Flanigan, “U.S., Japan Vie for Lead in Electronics,” Los Angeles Times, October 12, 1980, 1; U.S. Department of Commerce, Industry and Trade Administration, A Report on the U.S. Semiconductor Industry, September 1979.

  12. Hobart Rowen, “Entire Data Processing Industry Target of Japanese Companies,” The Washington Post, March 23, 1980, E1.

  13. McKenna, interview with the author, December 3, 2014.

  14. Tom Redburn and Robert Magnuson, “Stung by Tax Bill, Electronics Firms Seek Broader Political Base,” The Los Angeles Times, November 15, 1981, F1–4; “AeA Supports Two Bills Asking Tax Aid for R&D,” Computerworld, June 1, 1981, 67; Ken Hagerty, interview with the author, September 9, 2015, by phone; Redburn and Magnuson, “Stung by Tax Bill.”

  15. David Harris, “Whatever Happened to Jerry Brown?,” The New York Times, March 9, 1980, SM9. On Pat Brown’s defeat and its implications, see Matthew Dallek, The Right Moment: Ronald Reagan’s First Victory and the Decisive Turning Point in American Politics (New York: The Free Press, 2000).

  16. McKenna, interview with the author, December 3, 2014.

  17. Edmund G. Brown Jr., State of the State Address, January 8, 1981; “Governor Brown Boosts Microelectronics,” Science 211, no. 4483 (February 13, 1981): 688–89.

  18. William D. Marbach, “High Hopes for High Tech,” Newsweek, February 14, 1983, 61.

  19. California Commission on Industrial Innovation, “Winning Technologies: A New Industrial Strategy for California and the Nation,” September 2, 1982, Silicon Valley Ephemera Collection, Series 1, Box 4, FF 21, SU.

  20. Ronald Reagan, “Executive Order 12428—President’s Commission on Industrial Competitiveness,” June 28, 1983.

  21. Ben Rosen, “Jerry Sanders’ Humor,” The Rosen Electronics Letter 82, no. 12 (August 25, 1982): 14–15.

  22. House Democratic Caucus, Rebuilding the Road to Opportunity: Turning Point for America’s Economy (Washington: USGPO, 1982).

  23. “Steve Jobs and David Burnham,” Nightline, ABC News, April 10, 1981, archived at https://perma.cc/4UER-Y3YV.

  24. David Morrow, oral History interview with Steve
Jobs, Palo Alto, Calif., April 20, 1995, Smithsonian Institution.

  25. Quoted in Audrey Watters, “How Steve Jobs Brought the Apple II to the Classroom,” Hack Education.com, February 25, 2015, http://hackeducation.com/2015/02/25/kids-cant-wait-apple, archived at https://perma.cc/3K62-ACW5.

  26. Milton B. Stewart, “Polishing the Apple,” Inc., Feb. 1, 1983, https://www.inc.com/magazine/19830201/6207.html, archived at https://perma.cc/K7UQ-4ACC.

  27. National Commission on Excellence in Education, A Nation at Risk: The Imperative for Educational Reform (April 1983).

  28. Richard Severo, “Computer Makers Find Rich Market in Schools,” The New York Times, December 10, 1984, B1.

  29. Alan Maltun, “Students Beg to Stay After School to Use Computers”; David Einstein, “Bellflower Paces Area Schools in Computer Field”; Bob Williams, “Computer Parade Uneven,” The Los Angeles Times, December 11, 1983, SB1.

  30. Andrew Emil Gansky, “Myths and Legends of the Anti-Corporation: A History of Apple, Inc., 1976–1997,” PhD dissertation, The University of Texas at Austin, 2017; Watters, “How Steve Jobs Brought the Apple II to the Classroom”; Harry McCracken, “The Apple Story is an Education Story: A Steve Jobs Triumph Missing from the Movie,” The 74, October 15, 2015, https://www.the74million.org/article/the-apple-story-is-an-education-story-a-steve-jobs-triumph-missing-from-the-movie/, archived at https://perma.cc/EZV6-UGLT.

  31. Natasha Singer, “How Google Took Over the Classroom,” The New York Times, May 14, 2017, 1.

  32. “’82 House Freshmen Eschew Partisanship and Posturing,” The Washington Post, December 26, 1982, A1; Zschau, “Tax Policy Initiatives to Promote High Technology,” May 13, 1983, Box 51, FF Capital Gains 1, Ed Zschau Papers, HH.

  33. Mark Bloomfield, Memorandum to the Capital Gains Coalition, December 14, 1984, Box 51, Capital Gains II, Ed Zschau Papers, HH; “Testimony of Honorable Paul Tsongas (Foley, Hoag, and Eliot, Boston, Mass.) before the Senate Small Business Committee on The Elimination of the Capital Gains Differential for Individuals and Its Impact on Small Business Capital Formation,” June 2, 1986.

  34. Climate for Entrepreneurship and Innovation in the United States: Hearings Before the Joint Economic Committee, August 27 and 28, 1984, 3.

  35. Burt McMurtry, interview with the author, October 2, 2017.

  36. Committee on Innovations in Computing and Communications, National Academy of Sciences, Funding a Revolution: Government Support for Computing Research (Washington, D.C.: National Academies Press, 1999), 52–61.

  37. Michael Schrage, “Defense Budget Pushes Agenda in High Tech R&D,” The Washington Post, August 12, 1984, F1; Schrage, “Computer Effort Falling Behind,” The Washington Post, September 5, 1984, F1; Alex Roland with Philip Shiman, Strategic Computing: DARPA and the Quest for Machine Intelligence, 1983–1993 (Cambridge, Mass.: The MIT Press, 2002).

  CHAPTER 16: BIG BROTHER

  1. Paul Andrews and Stephan Manes, “If Perot’s So Smart, Why Did He Let Microsoft Slip Away?” The Austin American-Statesman, June 21, 1992, H1.

  2. Stephen Manes and Paul Andrews, Gates (New York: Touchstone/Simon & Schuster, 1993), 120–21; Peter Rinearson, “Young Students Had Program to Make Millions,” The Seattle Times, February 14, 1982, D3.

  3. Manes and Andrews, Gates, 153.

  4. Paul Andrews, “Mary Gates: She’s Much More Than the Mother of Billionaire Bill,” The Seattle Times, January 9, 1994, A1.

  5. Ironically, given the fact that his story was one proof point Silicon Valley insiders gave for their animus toward Microsoft, Kildall was a third-generation Seattleite and a computer science graduate of the University of Washington. While never achieving the fame of Bill Gates, he continued to make and market CP/M, and became a familiar face on public television as the host of The Computer Chronicles before his untimely death at age 52, in 1994. Gary Kildall, Computer Connections: People, Places, and Events in the History of the Personal Computer Industry, unpublished manuscript in the possession of Scott and Kristen Kildall, reproduced online with permission by the Computer History Museum at http://www.computerhistory.org/atchm/in-his-own-words-gary-kildall/, archived at https://perma.cc/NU3B-M47B.

  6. Rinearson, “Young Students.”

  7. Burt McMurtry, interview with the author, January 15, 2015; Leena Rao, “Sand Hill Road’s Consiglieres: August Capital,” TechCrunch, June 14, 2014, https://techcrunch.com/2014/06/14/sand-hill-roads-consiglieres-august-capital/, archived at https://perma.cc/6DN4-DERQ.

  8. Charles Simonyi, interview with the author, October 4, 2017, Bellevue, Wash.; Michael Hiltzik, Dealers of Lightning: Xerox PARC and the Dawn of the Computer Age (New York: HarperBusiness, 1999), 194–210; Michael Swaine and Paul Freiberger, Fire in the Valley: The Birth and Death of the Personal Computer, 3rd ed. (Raleigh, N.C.: The Pragmatic Bookshelf, 2014), 271.

  9. Simonyi interview; Charles Simonyi, oral history interview by Grady Booch, February 6, 2008, CHM, 30–34; Manes and Andrews, Gates, 167.

  10. Intel Corporation, Annual Report, 1980 and 1984. The surge in growth came under the leadership of Andy Grove, who became CEO in 1987. Under Grove’s tenure, Intel’s 386 microprocessor became the industry standard and the company at last became a household name with its ubiquitous “Intel Inside” marketing campaign. See Richard S. Tedlow, Andy Grove: The Life and Times of an American (New York: Portfolio, 2006).

  11. George Anders, “IBM Set to Announce Entry into Home-Computer Field,” The Wall Street Journal, August 11, 1981, 35; “IBM to Announce More Small Computers,” InfoWorld, August 17, 1981, 1.

  12. Mike Markkula quoted in Paul Freiberger, “Apple Computer in News,” InfoWorld, August 31, 1981, 1.

  13. Display ad 25—no title, The Wall Street Journal, August 24, 1981, 7.

  14. On the history of the Macintosh, see Steven Levy, Insanely Great: The Life and Times of Macintosh, the Computer That Changed Everything (New York: Viking, 1994); Andy Hertzfeld, Revolution in the Valley: The Insanely Great Story of How the Mac Was Made (Sebastopol, Calif.: O’Reilly Media, 2004); Swaine and Freiberger, Fire in the Valley, 262–75.

  15. Margaret Comstock Tommervik, “The Women of Apple,” Softalk 1, no. 7 (March 1981): 4–10, 38–39.

  16. Floyd Kvamme, interview with the author, February 16, 2016, Stanford, Calif.; Guy Kawasaki, interview with the author, January 26, 2015, Menlo Park, Calif.; Andy Hertzfeld, “Pirate Flag, August 1983,” Folklore.org, https://www.folklore.org/StoryView.py?story=Pirate_Flag.txt, archived at https://perma.cc/GET2-7LQN.

  17. On Apple’s internal analysis of the problem, see Clyde Folley, “Copy Strategy, Apple Computer Inc., MIS/OFFICE/EDP, Second Draft,” January 5, 1983, Apple Computer Inc. Records, M1007, Series 7, Box 15, FF 1, SU.

  18. Ben Rosen, “Evolutionary Computers Spawn Revolution: The Under-$10,000 Boom,” The Rosen Electronics Letter, May 9, 1980, 1, 10.

  19. Fortune (Dec 26, 1983, 142) quoted in Thomas & Company, “Competitive Dynamics in the Microcomputer Industry: IBM, Apple Computer, and Hewlett-Packard,” 26, M1007, Series 7, Box 14, FF 5, Apple Computer Company Records, SU.

  20. Martin Reynolds, “The Billionth PC Ships,” Gartner Research Note, June 28, 2002; Fortune (Dec. 26, 1983, 142) and Jobs (WSJ, Oct, 4, 1983, 1) both quoted in Thomas & Company, “Competitive Dynamics in the Microcomputer Industry,” 24, 26.

  21. John Markoff, “Adam Osborne, Pioneer of the Portable PC, Dies at 64,” The New York Times, March 26, 2003, C13; Daniel Akst, “The Rise and Decline of Vector Graphic,” The Los Angeles Times, August 20, 1985, V_B5A; John Greenwald, Frederick Ungeheuer, and Michael Moritz, “D-Day for the Home Computer,” Time 122, no. 20 (November 7, 1983): 74.

  22. John Young, Paul Ely in BusinessWeek, October 3, 1983, quoted in Thomas & Company, “Competitive Dynamics in the Microcomputer Industry.”

  23. Thomas & Company, “Competitive Dynamics.”

  24. Smith, “Silicon Valle
y Spirit”; Robert Reinhold, “Life in High-Stress Silicon Valley Takes a Toll,” The New York Times, January 13, 1984, 1.

  25. Jean Hollands, The Silicon Syndrome: A Survival Handbook for Couples (Palo Alto, Calif.: Coastlight Press, 1983).

  26. Reinhold, “Life in High-Stress Silicon Valley Takes a Toll”; Smith, “Silicon Valley Spirit.”

  27. Thomas & Company, “Competitive Dynamics”; Paul Freiberger, “IBM Counts its Chips, Invests $250 Million in Intel,” InfoWorld 5, no. 5 (January 31, 1983): 30; Jean S. Bozman, “The IBM-Rolm Connection,” Information Week 37 (October 21, 1985): 16; Katherine Maxfield, Starting Up Silicon Valley: How ROLM became a Cultural Icon and Fortune 500 Company (Austin, Tex.: Emerald Book Co., 2014).

  28. Mitch Kapor, interview with the author, October 19, 2017, Oakland, Calif.; Udayan Gupta, Done Deals: Venture Capitalists Tell Their Stories (Cambridge, Mass.: Harvard Business School Press, 2000), 83–88; John W. Wilson, The New Venturers: Inside the High-Stakes World of Venture Capital (Reading, Mass.: Addison-Wesley, 1985), 110–13.

  29. Martin Campbell-Kelly, “Not Only Microsoft: The Maturing of the Personal Computer Software Industry, 1982–1995,” The Business History Review 75, no. 1 (Spring 2001): 103–45.

  30. Jeanne Hayes, ed., Microcomputer and VCR Usage in Schools, 1985–1986 (Denver, Colo.: Quality Education Data, 1986), 4, 36, 38; U.S. Bureau of the Census, Robert Kominski, Current Population Reports, Special Studies, Series P-23, No. 155, Computer Use in the United States: 1984 (Washington, D.C.: U.S. Government Printing Office, 1988).

  31. Author interview with former associate of RMI, Inc., August 6, 2018.

  32. Mike Hogan, “Fighting for the Heavyweight Title,” California Business, November 1984, 78–93; Computer Age, December 12, 1983, quoted in Thomas & Company, “Competitive Dynamics”; Hogan, “Fighting for the Heavyweight Title.”

 

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