The key to the development of the transistor was the further understanding of the process of the electron mobility in a semiconductor. It was realized that if there was some way to control the flow of the electrons from the emitter to the collector of this newly discovered diode (discovered 1874; patented 1906), one could build an amplifier. For instance, if you placed contacts on either side of a single type of crystal the current would not flow through it. However if a third contact could then "inject" electrons or holes into the material, the current would flow. [A transistor is a semiconductor device used to amplify and switch electronic signals and electrical power. It is composed of semiconductor material with at least three terminals for connection to an external circuit. A voltage or current applied to one pair of the transistor's terminals changes the current through another pair of terminals. Because the controlled (output) power can be higher than the controlling (input) power, a transistor can amplify a signal. Today, some transistors are packaged individually, but many more are found embedded in integrated circuits. The transistor is the fundamental building block of modern electronic devices, and is ubiquitous in modern electronic systems. Following its development in the early 1950s, the transistor revolutionized the field of electronics, and paved the way for smaller and cheaper radios, calculators, and computers, among other things.]
Source: magictransistor.com