The term "hyperlink" was coined in 1965 (or possibly 1964) by Ted Nelson at the start of Project Xanadu. Nelson had been inspired by "As We May Think", a popular 1945 essay by Vannevar Bush. In the essay, Bush described a microfilm-based machine (the Memex) in which one could link any two pages of information into a "trail" of related information, and then scroll back and forth among pages in a trail as if they were on a single microfilm reel.
In a series of books and articles published from 1964 through 1980, Nelson transposed Bush's concept of automated cross-referencing into the computer context, made it applicable to specific text strings rather than whole pages, generalized it from a local desk-sized machine to a theoretical proprietary worldwide computer network, and advocated the creation of such a network. Though Nelson's Xanadu Corporation was eventually funded by Autodesk in the 1980s, it never created this proprietary public-access network. Meanwhile, working independently, a team led by Douglas Engelbart (with Jeff Rulifson as chief programmer) was the first to implement the hyperlink concept for scrolling within a single document (1966), and soon after for connecting between paragraphs within separate documents (1968), with NLS. Ben Shneiderman working with graduate student Dan Ostroff designed and implemented the highlighted link in the HyperTIES system in 1983. HyperTIES was used to produce the world's first electronic journal, the July 1988 Communications of ACM, which was cited as the source for the link concept in Tim Berners-Lee's Spring 1989 manifesto for the Web. In 1988, Ben Shneiderman and Greg Kearsley used HyperTIES to publish "Hypertext Hands-On!", the world's first electronic book.
A database program HyperCard was released in 1987 for the Apple Macintosh that allowed hyperlinking between various pages within a document. In 1990, Windows Help, which was introduced with Microsoft Windows 3.0, had widespread use of hyperlinks to link different pages in a single help file together; in addition, it had a visually different kind of hyperlink that caused a popup help message to appear when clicked, usually to give definitions of terms introduced on the help page. The first widely used open protocol that included hyperlinks from any Internet site to any other Internet site was the Gopher protocol from 1991. It was soon eclipsed by HTML after the 1993 release of the Mosaic browser (which could handle Gopher links as well as HTML links). HTML's advantage was the ability to mix graphics, text, and hyperlinks, unlike Gopher, which just had menu-structured text and hyperlinks.