Department of Economics Working Paper Series Disintermediation: the Rise of the Personal Computer and the Internet in the Late Twentieth Century by Richard N. Langlois University of Connecticut Working Paper 2021-12 July 2021 365 Fairfield Way, Unit 1063 Storrs, CT 06269-1063 Phone: (860) 486-3022 Fax: (860) 486-4463 http://www.econ.uconn.edu/ This working paper is indexed in RePEc, http://repec.org Disintermediation: the Rise of the Personal Computer and the Internet in the Late Twentieth Century Richard N. Langlois
[email protected] Department of Economics The University of Connecticut Storrs, CT 06269-1063 USA July 2021 ABSTRACT This paper is an excerpt from a larger book project called The Corporation and the Twentieth Century, which chronicles and interprets the institutional and economic history – the life and times, if you will – of American business in the twentieth century. This excerpt details the history of the personal computer industry and the Internet. It highlights the process of entrepreneurship and decentralized learning in these industries, and it considers the role of industrial and trade polices (in both the U. S. and Japan) in semiconductors and the development of the Internet. The excerpt ends with a consideration of U. S. v. Microsoft at the close of the century. JEL: D23, F14, K21, L26, L4, L52, L63, N62, N82, O3, P12, P 14, P16 Keywords: Innovation; technological change; entrepreneurship; industrial policy; antitrust. Comments solicited. Please do not cite without permission of the author. Long before the 1960s, what was to become Silicon Valley had been built by hobbyists, tinkerers, radicals, and utopians.1 Between the wars, the San Francisco area was a haven for amateur radio hobbyists, driven in part by the nearby naval and maritime facilities that called for and generated skills in radio.