First, the word "embed" is a word that goes back to the late 1700s, referring to inserting or incorporating something within a larger item. The term did not refer to a journalism practice until fairly recently. An embedded journalist travels with a military unit, which offers him or her protection while allowing direct-from-the-scene reporting that might not be possible otherwise. There have been reporters in nearly ever war who covered the military, but usually, these reporters were not traveling with a group of soldiers-- staying with them, watching them do their work. (Part of the agreement for being an "embed" was that confidential information, or information that would compromise where the troops were, was not to be reported. But otherwise, there was considerable access to the troops, and even to their leaders.)
This type of reporting became popular during the Iraq War, after the media complained that in the Gulf War of 1991, their access was severely limited, making it difficult for them to do their jobs. But the practice of embedding, while in some ways interesting and exciting, was also controversial. Censorship was common, and not just about where the troops were-- sometimes, military censors believed a story would cast the war effort in a bad light. Critics soon accused the embeds of being unwitting propagandists, only allowed to report the good and the positive, part of the Bush Administration's strategy of managing the press.
It should also be noted that even with protection of the military, being an embed had its dangers and some journalists were wounded or even killed. I enclose a link to an article about the process of embedding, including some of the history, as well as the good and bad points of doing it.
The Apollo Guidance Computer, which took us to the moon was an embedded computer long before any desktop computer existed. There were missile guidance computers before that (e.g. Bomark & Minuteman I) that were embedded.
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