The Transfer of New Technology from Research & Development to Manufacturing and Export

Edinburgh Instruments Ltd

FOUNDED IN 1971 AS THE FIRST UNIVERSITY TO INDUSTRY SPIN OFF IN THE HERIOT-WATT RESEARCH PARK

Now in Livingston

LASERS - Initial products created from Physics Department Research – gas lasers

A carbon monoxide (CO) laser (5 μm) ▼

Range of CO2 lasers (10.6 μm) ▼

Far Infra Red lasers (96 – 513 μm) ▼

Semi Conductor Diode lasers (375 – 670 nm)

1,140 lasers sold in 38 years

Spectrometers from 1978Range of fluorescence spectrometers- From steady state to nanosecond lifetimes- more than 500 sold to 43 countries

▼

Infra-red Gas Sensors from 1983- more than 52,000 sold

An example of the product creation process

The Transfer of New Technology from Research & Development to Manufacturing and Export

COMPANYAccumulated turnover: ~£84m

Exports: ~£67m - 80%Over 1,100 man years of direct employment created plus local sub-contracting and service >£400k p.a. ~ c.1000 man years

SENSORS DIVISIONTotal units: ca. 52,000 infra red gas sensorsTotal turnover 70% export: £19m Average unit price: £450

LASER DIVISIONTotal units: >1,200 lasersTotal turnover: >£24m

SPECTROMETER DIVISIONTotal units: Approaching 550 systems worldwideTotal turnover: £41m “fluorescence” spectrometersUnit price: £30k - £70k

DEVELOPMENT PROJECTS – Total turnover ca. £12mMajor development projects undertaken with Dundee, Edinburgh Universities, ITI,

SCORE, DTI, Amersham Biosciences and EU Framework Programmes and SPUR grants

In 2008-9 : 91% exported to 46 countries – top China, USA

CONTRIBUTION TO THE ECONOMY

58 staff : positive cash flow >£1m

From D. Birchall FRS of I.C.I “The relevance of irrelevance”

EI Infra-red gas sensors – 15 years

The Transfer of New Technology from Research & Development to Manufacturing and Export

J.J. Thomson – Discoverer of the Electron (1897)

The Transfer of New Technology from Research & Development to Manufacturing and Export

1956 1968

Market pull IR CO2 sensor for diving bell at high pressure.

Single or Dual Channel infra red detectorwith integrated optical filters

Gold plated internal reflector

Light Pipe

Microprocessor

Modulated source

Sample gas in

Sample gas out

Lamps last : warranty 2 years, many 5 yrs, some 10!!

The crucial commercial decision was to make an OEM product – the Gascard instead of a complete gas sensor (the Guardian)

The Transfer of New Technology from Research & Development to Manufacturing and Export

Development

Excitation and Emission Double Grating Monochromators

Nothing helps this process better than an order from a customer.The best Government scheme was the Pre-ProductionOrder which worked as follows:-

(1) A new product is identified by inventor and manufacturer.(2) The DTI together with the company seek, say 3, potential

customers.(3) Specifications are agreed between customers and manufacturers,

as is price and time scale (price includes interest and company foregoes profit).

(4) DTI orders from the company.(5) Products are delivered, free for 1 year to customers.(6) Customers use, test and report. If satisfactory, they are morally

obliged to buy at end of year.(7) DTI gets repaid.(8) If product returned, company agrees to repurchase at 70% and

can try to sell again.

This scheme manages the whole proceedings, motivates the staff and markets the product almost automatically.

We found it worked well. Needless to say …… it has been discontinued!

However it could be operated privately; it recycles the funds and spreads the risks.

Enabling Functions

Sales and Marketing International sales activities approached in 2 ways –

Direct sales by company’s own sales personnelSales via local agents and distributors, who are

managed by EI. Quickest way to grow in international market is via a good local

agent. Complex buying process in various international markets,

addressed by an appropriate local agent. National and international conferences and trade shows. Scientific publications help sell automatically.

Software – Electronics – Mechanical design – Optics – Finance - Production