In 1884, in association with Dr. Ernst Abbe and Carl Zeiss, Otto founded Glastechnische Laboratorium Schott & Genossen (Schott & Associates Glass Technology Laboratory) in Jena. It was here, during the period 1887 through to 1893, that Schott developed borosilicate glass. Borosilicate glass is distinguished for its high tolerance to heat and a substantial resistance to thermal shock resulting from sudden temperature changes and resistance to degradation when exposed to corrosive chemicals. This type of glass initially became known under the brand name Duran. Their business enterprise also commercialized apochromatic lenses that had low chromatic aberration and was based on Schott's systematic investigations of the composition and properties of glass.
Schott used borosilicate glass to make laboratory and medical supplies, including thermometers, glassware for laboratory use, medicine vials and pharmaceutical tubing. Schott produced domestic glassware under the brandname "Jenaer Glas". He also produced heat resistant lamp cylinders for use in gas lighting. Carl Auers incandescent gas lamps were first sold in 1894 and became a lucrative source of income for Schotts glassworks. In late 1890s he was also involved in the electrification of the industry in Jena. Schott's business enterprise held a near monopoly on global optical glass from its inception until the start of World War I.
In 1919, Schott & Associates became wholly owned by the Carl Zeiss Foundation, although Schott & Associates is known in the early 21st century as Schott AG. The Schott Company's brand became associated with high quality and specialty optics.
As of 2020, vials made of glass from Schott AG were being used in vaccination efforts against COVID-19 disease.