HISTORY OF THE TRANSISTOR COMPETITION IS GOOD FOR THE MARKET PLACE, THE THEORY GOES. WE'RE CERTAINLY ALWAYS SEEING IT IN ACTION WITH COMPUTER TECHNOLOGY--ONE COMPANY COMES OUT WITH A NEW COMPUTER PART AND ANOTHER COMPANY QUICKLY CREATES A BETTER ONE. WELL, THE SAME THING WAS HAPPENING 50 YEARS AGO DURING THE INVENTION OF ONE OF THE COMPUTER'S KEY COMPONENTS--THE TRANSISTOR. RIORDAN:The fact that you can miniaturize a transistor so much is the reason you and I can afford to own a very powerful computer and put in on our desk. THE TRANSISTOR WAS INVENTED IN DECEMBER OF 1947 AT BELL LABS SAYS PHYSICIST MICHAEL RIORDAN. HE IS THE COAUTHOR OF THE BOOK CRYSTAL FIRE WHICH DESCRIBES THE HISTORY OF THAT INVENTION. AT THAT TIME THE PHONE SYSTEM--AS WELL AS COMPUTERS AND TELEVISION SETS--ALL USED A SERIES OF VACCUUM TUBES TO CONTROL ELECTRICAL SIGNALS. BUT BELL LABS WANTED SOMETHING MUCH SMALLER. ON DECEMBER 16, PHYSICISTS JOHN BARDEEN AND WILLIAM BRATTAIN STUCK TWO METAL POINTS INTO A CHIP OF GERMANIUM AND FOUND (sfx: appropriate under all here) THAT THE ELECTRIC SIGNAL THAT CAME OUT WAS BIGGER THAN THE SIGNAL THEY SEND IN. AND UNLIKE A METAL WIRE, RIORDAN: Germanium just has a trickle of electrons going through it . . and it turns out that that trickle is much easier to manipulate. THUS THE FIRST TRANSISTOR WAS BORN. BUT BARDEEN AND BRATTAIN WORKED UNDER WILLIAM SHOCKLEY. RIORDAN: Shockley . . . felt that he had been scooped by his own employees. . .there was a real competition. . . so he very rapidly went to work and spent most of his free time during the next month coming up with a better transistor. AND THANKS TO A LITTLE COMPETITION, ALL THREE MEN LATER WON A NOBEL PRIZE FOR THEIR INVENTION.