The two founders and only employees of Carton Edge Systems have become the smallest winner of a Queen's Award for Industry this year.
Managing director Ian Jamie and technical director Eddie Owen received the Grant of Appointment and Award silver bowl from the Deputy Lord Lieutenant of West Midlands, Colonel Anthony Griffiths.
Carton Edge Systems gained the award for its innovative system for applying serrated cutting edges to kitchen foil and film dispensers.
Over five years, the company developed a range of new materials and edge profiles and efficient production machinery.
Now, Carton Edge Systems and its engineering partners, Bradman Lake of Bristol and Heider & Schroder of Dusseldorf, are about to build and market a new generation of machines to produce cutter cartons at speeds up to 14,000 an hour.
Mr Owen said: "The firm was set up 15 years ago when Ian and I were made redundant and the systems part set up eight years ago.
"We first decided to set up our own packaging company, called Carton Edge, to put edges onto boxes for clingfilm and wraps.
"Then I realised the quicker we applied the edges, the more money we could earn, so we started work on a new machine to apply them."
Mr Owen, who has been a packaging engineer for 25 years, began working on an ideas to develop a new machine.
Eventually he came up with the Eco Edge, which has been sold to ten countries across the world including the Lebanon, Japan, Brazil as well as the UK.
The machines, which applies paper edges, has tripled the capacity from 5,000 cartons per hour to 15,000.
He said: "How does an idea develop? Through necessity, you have production problems you have to get around it. From that the germ of an idea you develop existing methods.
"Manufacturing methods change, with servos and motion control coming in which opens up a lot of possibilities."
Mr Owen drew up some rough drawings, which were turned into computerised designs before a prototype was built at the Coventry firm.
He said: "We started using the prototype in house, and carried on working on it to make it more user friendly. The old machines were slow and difficult to use, but the new one is much better.
"It helped us it improved or production considerably. It enabled us to enter the whole new realm of recyclable materials and helped our packaging company grow.
" The old American machines which used to apply metal blades have been converted to use paper edges, but were so very slow."
The company now coordinates the building of the the machines and collects the fees from firms around the world who use the equipment.
Mr Owen said: "Technology stood still for 30 years, but we played around with it. Replacing the metal edge with paper is not quite as good, but if you play around with the angles you can improve the cutting."
The machine works by taking a roll of paper with backing paper, removing it, cutting an edge and applying it to the carton in a cycle.
Mr Owen, who still runs the Carton Edge operation as well as the Systems company, said: "The computer which controls a motor can move the motor at tremendous speed."
The edges ultimately end up on foil and cellophane dispensers on sale at all UK supermarkets.
The company is now launching a sales drive, and building up a stock of its machinery which normally takes about 12 weeks to build.
There are three machines in the range, a super duper model which does 14,000 cartons per hour, one that does 8,000 per hour, and a hand operated machine which does 1,000 per hour.
Mr Owen said: "UK manufacturing is a bit depressed at the moment with a lot of outsourcing going on.
"It is nice to reverse that trend, and be doing well. It has been a rollercoaster ride, and going to Buckingham Palace to meet the Queen makes your knees wobble."