Detailed Instructions: This task is about reading the given passage and construct a question about the information present in the passage. Construct a question in such a way that (i) it is unambiguous, (ii) it is answerable from the passage, (iii) its answer is unique (iv) its answer is a continuous text span from the paragraph. Avoid creating questions that (i) can be answered correctly without actually understanding the paragraph and (ii) uses same words or phrases given in the passage.
Q: In 1974, L. Ottens, director of the audio division of Philips, started a small group with the aim to develop an analog optical audio disc with a diameter of 20 cm and a sound quality superior to that of the vinyl record. However, due to the unsatisfactory performance of the analog format, two Philips research engineers recommended a digital format in March 1974. In 1977, Philips then established a laboratory with the mission of creating a digital audio disc. The diameter of Philips's prototype compact disc was set at 11.5 cm, the diagonal of an audio cassette.
A:
In what year did Philips institute a laboratory to create a digital audio disc?