In 1967, Tom Parry Jones established Lion Laboratories in Cardiff, with his colleague, electrical engineer Bill Dulcie. The Road Safety Act 1967 introduced the first legally enforceable maximum blood alcohol level for drivers in the UK, above which it became an offence to be in charge of a motor vehicle; and introduced the roadside breathalyser, made available to police forces across the country. In 1979, Lion Laboratories' version of the breathalyser, known as the Alcolyser and incorporating crystal-filled tubes that changed colour above a certain level of alcohol in the breath, was approved for police use. Lion Laboratories won the Queen's Award for Technological Achievement for the product in 1980, and it began to be marketed worldwide. The Alcolyser was superseded by the Lion Intoximeter 3000 in 1983, and later by the Lion Alcolmeter and Lion Intoxilyser. These later models used a fuel cell alcohol sensor rather than crystals, providing a more reliable kerbside test and removing the need for blood or urine samples to be taken at a police station. In 1991, Lion Laboratories was sold to the American company MPD, Inc.
Tom Parry Jones later set up PPM Technology Ltd, a company manufacturing instruments for monitoring toxic gases, and also established a small air charter company, Welsh Dragon Aviation.
In about 2002, he established the Dr Tom Parry Jones Endowment Fund, at Bangor University, to encourage young people to develop careers and entrepreneurship in science and technology. The fund supports an annual Bangor Science Festival. He was also chairman of the Welsh Centre for International Affairs; and a trustee of the Engineering Education Scheme for Wales.