She died Thursday, said a spokeswoman for the Hospital of the University of Pennsylvania in Philadelphia.
In 1945, James and her husband at the time, Richard, founded the company that would later make Slinky, the toy for which she was inducted into the Toy Industry Hall of Fame in 2001. The coil-shaped toy which could go down stairs by walking end-over-end became a hit with children.
She took over management of James Industries Inc. 14 years after the company was founded, after her husband left her to follow a religious cult in Bolivia. Richard James died in 1974.
Initially, James would leave her six children with a caregiver from Sunday through Thursday while she oversaw operations in Philadelphia. But in 1965, she moved the company to her hometown of Hollidaysburg, where although it was sold in 1998 to Michigan-based POOF Products Inc., it remains today.
"She was an icon in the community because of that business," Blair County Commissioner Diane Meling said. "What kid didn't grow up with a Slinky?"
Hundreds of millions of Slinkys have been sold worldwide. James explained the classic toy's success in a 1995 interview with The Associated Press.
On its Web site, the Toy Industry Hall of Fame praises James for commitment and perseverance that "allowed children the world over the opportunity to relish the ingenuity and pure fun of a Slinky."