i don't think so. not sure who was the first but Phil Keaagy used one in Glass Harp I believe prior to 79.
i just watched and not sure that is an ebow. i have never seen one that looks like what he has in his hand. maybe it is his version of one.
That's not an Ebow. Probably some one off gizmo that Tom created. Buck Dharma (BOC) used an Ebow on "Don't Fear The Reaper" in 1976.
That infinite delay sound that I hear in that section is his Hyperdrive unit. It's a modified Echoplex integrated with a pedal. You can look it up. Not sure what is in his right hand.
C'mon guys! What is he holding? 
My guess is he built his own version of a battery-powered inductance coil string driver (like an eBow), and put that little antennae on it as a joke. It may have been too simple of a circuit to avoid patent infringement, or just too specialized of a product when he was ready to release his own line.
EDIT: I just watched more of the video than I did the first time. I agree with the the below comment - it looks like he is using a signal splitter box, as a guitar slide. Like the one in the picture, but with a metal case.
I honestly think it's just a make shift slide, because it was what he had to use at that time. The actual device in his hand looks like it has a 1/4" plug on the end. Possibly a piece of a wireless system or connection coupler. The delay sound is from his hyperspace pedal. Right before this item is used you can see him walking to the side of the stage, probably looking for something to use. I've done this before, misplaced a slide & improvised with something else.
Or perhaps it makes that explosion sound like Steve Stevens Ray Gun, in combo with the hyperspace delay to make it sound like a ship taking off.
I love this song/songs. Way back in the day there was a cover band that played in a bar near me that had all sorts of live entertainment that played these songs. I knew the keyboard player in the band. The bass player sung the song and nailed it. They nailed it overall. Some great writing and performing.
I honestly think it's just a make shift slide, because it was what he had to use at that time. The actual device in his hand looks like it has a 1/4" plug on the end. Possibly a piece of a wireless system or connection coupler. The delay sound is from his hyperspace pedal. Right before this item is used you can see him walking to the side of the stage, probably looking for something to use. I've done this before, misplaced a slide & improvised with something else.
Or perhaps it makes that explosion sound like Steve Stevens Ray Gun, in combo with the hyperspace delay to make it sound like a ship taking off.
They had wireless in 1979? It looks like he touches the low E string with the probe part of it at 1:59. I think it was his version of an ebow.
i took another look and now i am convinced it is a:
TheraEbowMan - Combo Theramin, Ebow and Scholz Rockman
That Scholz guy is crazy.
He does not touch whatever is in his right hand to the low E IMO. And I hear no Ebow sounds. I think he has the neck pickup volume off and bridge pickup on. He toggles the pickup switch from neck to bridge(off to on) and enables the hyperspace device at the same time. The off to on snippet is what is repeated and pitch shifted via the Hyperdrive. Maybe this is where Morello got his idea from?
I have no idea what is in his right hand, but it ain't an Ebow.
All IMO
They had wireless in 1979? It looks like he touches the low E string with the probe part of it at 1:59. I think it was his version of an ebow.
Swedish guitar player Bo Winberg in The Spotnicks used wireless 1963 
( He built it himself. He also built his own amps ... )
Cheers !
I guess we don't know what all this is either... MIDI tremolo?
They had wireless in 1979? It looks like he touches the low E string with the probe part of it at 1:59. I think it was his version of an ebow.
This was one used back in the day, may have been more. But, some claim this system contributed some element to their sound that was beneficial , even to the point that they used it studio recording. I'm totally not saying that this is what this is, but pointing out for the record, since it appears that there was some doubt.
My guess is he built his own version of a battery-powered inductance coil string driver (like an eBow), and put that little antennae on it as a joke. It may have been too simple of a circuit to avoid patent infringement, or just too specialized of a product when he was ready to release his own line.
EDIT: I just watched more of the video than I did the first time. I agree with the the below comment - it looks like he is using a signal splitter box, as a guitar slide. Like the one in the picture, but with a metal case.
I honestly think it's just a make shift slide, because it was what he had to use at that time. The actual device in his hand looks like it has a 1/4" plug on the end. Possibly a piece of a wireless system or connection coupler. The delay sound is from his hyperspace pedal. Right before this item is used you can see him walking to the side of the stage, probably looking for something to use. I've done this before, misplaced a slide & improvised with something else.
Or perhaps it makes that explosion sound like Steve Stevens Ray Gun, in combo with the hyperspace delay to make it sound like a ship taking off.
The answer! Nice one. He's probably rubbing that back and forth on the strings while changing the Hyperdrive with a foot pedal. He's off camera for that.
