It took James Dyson five years and 5,127 prototypes to invent and produce the world's first cyclonic vacuum cleaner. He's a rare breed a man with the vision to create new solutions in areas of unfulfilled need and the commercial savvy to get them to market.

Such innovative talent wrapped up in one person is rare in all areas of life, including healthcare.

Dr Kevin Matthews, chief executive of Oxonica, based on the Begbroke Science Park, is very clear where the issues lie.

He said: "While everyone agrees that the UK is strong on science, we are not so focused on the application of science, which is what fundamentally generates commercial success."

The recent spate of industry downsizing and mergers has created an opportunity to capitalise on the skilled resources released from commercially focused multi-nationals into the job market.

Dr Matthews added: "We know the UK has skilled managers and good science the gap is in the application of these assets in product development."

"This is the space where Oxonica plays. We have a broad technology platform and the ability to make things happen. We will get there by exploiting the market opportunity."

Oxonica was spun out of Oxford University in 1999 with technology that allows materials to be designed, manipulated and engineered at the nanoscale.

Nanoscience is the world of atoms and molecules. Only eight or ten atoms are needed to span one nanometer.

The company has already marketed products. Boots is selling the once-daily Soltan Facial Sun Defence Cream containing Oxonica's patented, highly efficient UV absorber, Optisol.

The additive also reduces the formation of free radicals produced from exposure to the sun, implicated in premature skin ageing.

Healthcare costs Dr Matthews is in no doubt where the key to innovation in healthcare can be found.

He said: "We must understand the macroeconomic drivers. We need to improve patient outcomes against the background of rising healthcare costs.

"This is best achieved by improving patient diagnosis in the doctor's surgery. The process requires us to define the problem with the goal of achieving the optimum patient outcome.

"Only then can we see how technology solves these issues."

Glyn Colebrooke, healthcare advisor to the newly launched Innovation Advisory Service South East (IASSE), agrees.

He said: "Companies fail for two reasons either they haven't drilled down enough into the market place and they don't understand the customer, or they run out of cash.

"IASSE has been set up to support the former in collaboration with partners Oxford Innovation, CLIC, the technology transfer arm of the Rutherford Appleton Laboratory and SERCO, both at Culham, and the National Physical Laboratory.

"Oxford Innovation also manages business angel networks, so can facilitate access to significant experience in raising funds."

IASSE has assembled teams of people who have worked at director level in various industries including healthcare.

Mr Colebrooke is principally responsible for supporting the pharmaceutical sector. He has launched more than 20 products worldwide during a career with companies like GlaxoSmithKline and Johnson & Johnson.

He added: "All IASSE advisors have been in global sectors again it's about understanding the macrodrivers.

"In the diagnostics industry, there are a few, very large players, so it is important to find commercial partners with marketing strength.

"The pharmaceutical industry is struggling to fill its pipeline with new drugs, so global companies must seek alliances with smaller organisations. Our advisors use their knowledge to steer entrepreneurs away from overcrowded markets, find their market niche and make the right contacts."

Another advisor, nurse turned entrepreneur Lise Kagenow, takes time away from her own company, Novarix, to help innovators in the field of Intravenous delivery present their ideas to international companies.

Ms Kagenow is co-ordinator for the IV Innovations Exchange, funded by IASSE and managed by Oxford Innovation.

She explained: "To get my own product to market, I had to find out who I needed to know and what they needed.

"I established contacts with many people, including regulators, NHS Procurement Teams and manufacturing companies, which I can now share with other entrepreneurs wanting to develop products in the same area.

"Because I've actually used IV devices, I know what the problems are for the patients and for the practitioners. I can use this knowledge to build bridges for other people between the knowledge base in hospitals and industry."

n Contacts: IASSE, www.iasse.co.uk; IV Innovations Exchange, www.iv-innovations.com n Visit the Oxfordshire Bioscience Network's website at www.oxfordshirebioscience.com