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The center, headquarters of IBM's Research division, is named for both Thomas J. Watson, Sr. and Thomas Watson, Jr., who led IBM as president and CEO respectively from 1915 (when it was known as the Computing Tabulating Recording Company) to 1971.

The research is intended to improve hardware (physical sciences and semiconductors research), services (business modelling, consulting, and operations research), software (programming languages, security, speech recognition, data management, and collaboration tools), and systems (operating systems and server design), as well as to extend the mathematics and science that support the information technology industry.

The center was founded at Columbia University in 1945 as the Watson Scientific Computing Laboratory, on 116th Street in New York, expanding to 115th Street in 1953. More labs were later opened in Westchester County, New York beginning in the late 1950s with the temporary facility and research headquarters at the former Robert S. Lamb estate [1] in Croton-on-Hudson, New York, with others in Yorktown Heights, and downtown Ossining.[2][3] The new headquarters were finally located with a new lab in Yorktown Heights designed by architect Eero Saarinen completed in 1961, with the 115th Street site closing in 1970. IBM later donated the New York City buildings to Columbia University; they are now known as the Casa Hispanica and Watson Hall.[4] The lab expanded to Hawthorne in 1984.

Notable staff has included the mathematicians Benoît Mandelbrot, Ralph E. Gomory, Shmuel Winograd, Alan Hoffman, Don Coppersmith, Mike Shub, Gregory Chaitin, the inventor Robert Dennard,

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