1. 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 CO 2 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

2. Spectrometers from 1978 Range 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

3. COMPANY Accumulated 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 DIVISION Total units:ca. 52,000 infra red gas sensors Total turnover 70% export:£19m Average unit price:£450 LASER DIVISION Total units:>1,200 lasers Total turnover:>£24m SPECTROMETER DIVISION Total units:Approaching 550 systems worldwide Total turnover:£41m “fluorescence” spectrometers Unit price:£30k - £70k DEVELOPMENT PROJECTS – Total turnover ca. £12m Major 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

4. From D. Birchall FRS of I.C.I “The relevance of irrelevance” EI Infra-red gas sensors – 15 years

5. The Transfer of New Technology from Research & Development to Manufacturing and Export J.J. Thomson – Discoverer of the Electron (1897)

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

7. 19561968

8. Market pull IR CO 2 sensor for diving bell at high pressure.

9. Single or Dual Channel infra red detector with 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!!

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

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

12. Excitation and Emission Double Grating Monochromators

13. Nothing helps this process better than an order from a customer. The best Government scheme was the Pre-Production Order 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.

14. Enabling Functions  Sales and Marketing  International sales activities approached in 2 ways – Direct sales by company’s own sales personnel Sales 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