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If all goes according to plan, "columbia," this nation's first space shuttle, will fly like a skylark next march. >> if the shuttle program works the way it's designed to, it will be a technological feat marveling that of the trip to the moon. a major moment in the history of flight. >> the space shuttle had new systems, new technology. the primary thing is the fly by wire system. you don't have pulleys and cables, it's all done by electronics. all the commands go through a computer. >> built as the world's first reusable spaceship, one that would commute to space carrying scientists and satel...

Wristwatches to microwave ovens. >> the mushrooming industry gives birth to a new high-tech cult and a place called silicon valley. >> the magic part of silicon valley is that there was this boiling pot of people who were involved in technology, involved in science. >> silicon valley was hp, sri, xerox park, and stanford university. that was a hell of a powerful combination. >> there was these two cultures, engineers with ph.d.s and hobbyists. >> it was a time when there was a lot of social ferment in and around the bay area. there was a lot of counter-culture people. so you had cheap semicond...

Worked at intel. basically an observation computer engineers are getting to the point where they can essentially double the computing power of a computer chip every 18 months or so. >> and this is what really made the power of computers explode in the 1980s. because every 18 months, these things were getting twice as good. >> you could get the whole computer on a chip. it was less expensive to manufacture. so you had smaller, which led to faster, which led to cheaper. >> under any other field of consumer products, things get more expensive over time. milk, gasoline, houses, but not technology....

Says a smaller version than this will be on the market next year. >> your first cell phones look like soviet army field telephones. these huge lunch boxes you hold up to your head. >> this is just the birth of this industry. all inventions start out in a very rough state. whether it's computers or cell phones. it took a while to refine them and make them into something that all of us use. >> you look at the bottom of your screen, it says "please press return" or -- >> the computer has become a national mania, and we're told, miss the electronic boat and you're sunk. >> in the future, everythin...

>> when it is lower prices that have helped the tremendous boom in home computer sales, about one home in ten will have a computer by the end of this year. by 1990, the number could be two out of three. >> we knew that the personal computer was getting serious when the competition started. because when you have competition, innovation gets stimulated. >> compaq. atari home computer. >> kaypro gives you the complete computer. >> higher resolution. more storage and great other expandability than ibm's pc. >> ibm's entry heated up an already volatile market. one industry innovator, osborne comput...