There is scarcely an engineering company in Britain which has not had to face radical changes in technology and world economic climate during the past decade. These companies have been forced to reorganise both their product policy and personnel and have either foundered or emerged the stronger as a result of these inevitable pressures from sources beyond their control. This thesis tells the story of just such a well-established mechanical engineering company which was forced out of its complacency of fifty years into a new aggressive and extremely competitive market, that of electronic gauging and measurement, and was able to recover from the brink of financial collapse because of its thrust into new technology and the resultant research, design and development of new and different products. For the first time in fifty years British Indicators Ltd was forced to innovate in order to survive.