How Two Stanford Friends Built Hewlett-Packard in a Garage and Launched Silicon Valley

In the heart of Silicon Valley, a modest garage at 367 Addison Avenue in Palo Alto stands as a monument to innovation. It was here that William “Bill” Hewlett and David “Dave” Packard, two Stanford University graduates, laid the foundation for what would become Hewlett-Packard (HP), a global technology leader.

The Genesis of a Partnership

Bill Hewlett and Dave Packard met in the 1930s while studying electrical engineering at Stanford University. Their mutual respect and complementary skills forged a strong friendship. Under the mentorship of Professor Frederick Terman, who encouraged his students to establish technology companies in the area, Hewlett and Packard decided to embark on a business venture together. In 1939, with an initial capital investment of $538, they established Hewlett-Packard in a rented garage behind Packard’s home.

Innovation in a Garage

The duo’s first product was the HP 200A, a low-distortion audio oscillator used for testing sound equipment. This device was notable for its use of a simple light bulb as a temperature-dependent resistor in its feedback network, a technique that stabilized the oscillator’s output and reduced distortion. The HP 200A was based on Hewlett’s graduate research and represented a significant advancement in audio testing equipment.  

One of their earliest customers was Walt Disney Studios, which purchased eight units of the HP 200B oscillator to test and certify the sound systems in theaters for the release of “Fantasia,” the first major film released in stereophonic sound.

The “HP Way”

Beyond their technological innovations, Hewlett and Packard established a unique corporate culture known as the “HP Way.” This philosophy emphasized respect for individuals, a commitment to quality, and a focus on innovation and community responsibility. Their management style fostered a collaborative environment that encouraged employee input and valued work-life balance, setting a precedent for future technology companies.

Growth and Legacy

HP’s success led to rapid growth. In 1947, the company was incorporated, and by the 1950s, it had expanded its product line to include a variety of electronic testing and measurement devices. HP’s commitment to innovation continued with the development of calculators, computers, and printers, solidifying its position as a leader in the technology industry. 

The original garage where Hewlett and Packard started their company has been preserved as a historical landmark, symbolizing the humble beginnings of what would become a cornerstone of Silicon Valley.

Conclusion

The story of Hewlett and Packard is a testament to how friendship, innovation, and a shared vision can lead to extraordinary achievements. Their journey from a small garage to the forefront of the technology industry continues to inspire entrepreneurs and innovators around the world.


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