Bill and Dave began part-time work in a garage behind Dave’s house with $538 in working capital. The $538 consisted of cash and a used Sears-Roebuck drill press. Bill's study of negative feedback resulted in HP's first product — the resistance-capacity audio oscillator (HP 200A), an electronic instrument used to test sound equipment. The principle of feedback provided the foundation for other early HP products such as a harmonic wave analyzer and several distortion analyzers.

World War II created a flood of U.S. government orders for electronic instruments from HP. That economic success allowed HP to build the first of its own buildings and add several new products. As HP grew, Bill Hewlett and Dave Packard created a management style that formed the basis of HP's famously open corporate culture and influenced how many later technology companies would do business. Dave practiced a management technique — eventually dubbed "management by walking aroun

expanded into Asia with a Japanese joint venture. Meanwhile in the U.S., HP opened its first manufacturing plants outside Palo Alto. HP began to be noticed as a progressive, well-managed company, and an enjoyable place to work.

During the 1960’s, HP continued its expansion overseas, forming several subsidiary companies. Early in the decade, HP continued its steady growth in the test-and-measurement marketplace while branching out into related fields like medical electronics and analytical instrumentation. They also developed their first computer (the HP 2116A), making its entry into that business in 1966. Early in the decade, HP

HP's first computer, the HP 2116A, was introduced in 1966. It was developed as a versatile instrument controller for HP's growing family of programmable test and measurement products. In an early version of "plug and play," it interfaced with a wide number of standard laboratory instruments, thereby allowing customers to computerize their instrument systems. The 2116A was the largest single mechanical package HP had built at the time, and it marked HP's first use of integrated circuits.

Near the end of the decade, HP was recognized for its rich past as well as for its technological advances and products. The garage where the company started was declared a California historical landmark, and HP celebrated its 50th anniversary.

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