The first floppy disks were invented by Dr. Nakamats back in 1960 with them being 8 inches across, The floppy disk was the real first form of storage for computers. However, the disk wasent used until the 1971, the disk was improved by IBM but the creator behind it was Alan Shugart. Over the years its size was reduced by more than half with the 8" version being replaced by the 5.25" and the 3.5" surpassing that. From the mid 1970s to the late 1990s the format remained popular until the introduction of flash and optical storage devices such as CD-Rs and USB sticks.
http://ezinearticles.com/?A-Quick-History-Of-The-Floppy-Disk&id=528312
http://www.designboom.com/history/floppydisk.html
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