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One of the great technology stories of all time is about a 1979 visit by Steve Jobs to Xerox’s Palo Alto Research Center (Xerox PARC). Xerox PARC was a prolific research facility for Xerox, located on the West Coast far from Xerox corporate HQ.  What Steve Jobs saw there opened his mind to several new ideas for personal computers, including the use of a mouse, and overlapping windows and icons in lieu of text commands used by operating systems like DOS.  If Microsoft Windows owed a lot to the Apple’s Macintosh OS, so the story goes, the Macintosh OS owed a lot to Steve’s visit to PARC.

This past May, Malcolm Gladwell took a look at this creation story for The New Yorker. The full article is fascinating, and here is an excerpt:

Apple was already one of the hottest tech firms in the country. Everyone in the Valley wanted a piece of it. So Jobs proposed a deal: he would allow Xerox to buy a hundred thousand shares of his company for a million dollars—its highly anticipated I.P.O. was just a year away—if parc would “open its kimono.” A lot of haggling ensued. Jobs was the fox, after all, and parc was the henhouse. What would he be allowed to see? What wouldn’t he be allowed to see? Some at parc thought that the whole idea was lunacy, but, in the end, Xerox went ahead with it. One parc scientist recalls Jobs as “rambunctious”—a fresh-cheeked, caffeinated version of today’s austere digital emperor. He was given a couple of tours, and he ended up standing in front of a Xerox Alto, parc’s prized personal computer.

An engineer named Larry Tesler conducted the demonstration. He moved the cursor across the screen with the aid of a “mouse.” Directing a conventional computer, in those days, meant typing in a command on the keyboard. Tesler just clicked on one of the icons on the screen. He opened and closed “windows,” deftly moving from one task to another. He wrote on an elegant word-processing program, and exchanged e-mails with other people at parc, on the world’s first Ethernet network. Jobs had come with one of his software engineers, Bill Atkinson, and Atkinson moved in as close as he could, his nose almost touching the screen. “Jobs was pacing around the room, acting up the whole time,” Tesler recalled. “He was very excited. Then, when he began seeing the things I could do onscreen, he watched for about a minute and started jumping around the room, shouting, ‘Why aren’t you doing anything with this? This is the greatest thing. This is revolutionary!’ ”

Xerox began selling a successor to the Alto in 1981. It was slow and underpowered—and Xerox ultimately withdrew from personal computers altogether. Jobs, meanwhile, raced back to Apple, and demanded that the team working on the company’s next generation of personal computers change course. He wanted menus on the screen. He wanted windows. He wanted a mouse. The result was the Macintosh, perhaps the most famous product in the history of Silicon Valley.

“If Xerox had known what it had and had taken advantage of its real opportunities,” Jobs said, years later, “it could have been as big as I.B.M. plus Microsoft plus Xerox combined—and the largest high-technology company in the world.”

This is the legend of Xerox parc. Jobs is the Biblical Jacob and Xerox is Esau, squandering his birthright for a pittance. In the past thirty years, the legend has been vindicated by history. Xerox, once the darling of the American high-technology community, slipped from its former dominance. Apple is now ascendant, and the demonstration in that room in Palo Alto has come to symbolize the vision and ruthlessness that separate true innovators from also-rans. As with all legends, however, the truth is a bit more complicated.