Final answer:
The first teddy bear was independently created by Morris Michtom in the U.S. and Richard Steiff in Germany in the early 1900s. The name 'teddy' is derived from President Theodore 'Teddy' Roosevelt after a compassionate act during a hunting trip, which also inspired Morris Michtom's bear design.
Step-by-step explanation:
The first teddy bear is attributed to two independent toy makers: Morris Michtom in the United States and Richard Steiff in Germany, around the same time in the early 1900s.
The name 'teddy' comes from President Theodore 'Teddy' Roosevelt. The story goes that President Roosevelt refused to shoot a bear cub while on a hunting trip in 1902. This act of compassion inspired a political cartoon by Clifford Berryman.
Seeing the cartoon, Michtom created a bear and placed it in his shop window, calling it 'Teddy's Bear.' Almost simultaneously, Richard Steiff designed a similar bear in Germany, which was unveiled at the Leipzig Toy Fair in 1903.
Both bears were an immediate success and have led to over a century of teddy bear's popularity among children and adults alike.