The Government should establish a Technology Council to aid British industry, Lord Bhattacharyya urged yesterday.
Speaking in the Lords, he said one of the UK's greatest assets was its science base.
And research in healthcare and medicine was "the jewel in that crown". But technology was key to a better and more efficient health service.
Lord Bhattacharyya, director of Warwick Manufacturing Group, said: "The UK today has tremendous strength in research and development across the whole health sector.
"We all benefit from health research and there is tremendous value to the economy from investment in health R&D.
"Our pharmaceutical industry alone generates a trade surplus of £3.75 billion each year."
Saying he welcomed the Chancellor's Budget announcement combining the R&D spend managed by the Medical Research Council and those of the Department of Health, he noted that this had created a dedicated ring-fenced annual fund of over £1 billion for health R&D.
He went on: "I firmly believe that funding should continue to be awarded on the basis of excellence across the whole spectrum of health research, from basic to clinical and to public health. Covering the whole range of science, engineering and technology. All of which is employed in supporting the nation's healthcare."
But the crucial role of technology and innovation had not been fully appreciated.
Lord Bhattacharyya said: "Only now are we fully recognising the importance of innovation.
"We spend some £3 billion a year on university research and only £100 million on encouraging the exploitation of that research in the form of innovation and knowledge transfer.
"Is it not time to establish a Technology Council to join the ranks of the research councils and be specifically charged with fostering university industry links? I have been arguing the case for a Technology Council for over a decade - now is the time for it to be born.
"We must step up our innovation effort with an institutional voice charged with making it happen.
"As well as first class research our universities also generate first class manpower. Our challenge is to get the people who are capable of ensuring that this technology is utilised to its utmost into our health care services.
"The Government has made a huge investment in health-care. The public quite rightly expects improved levels of care and improved levels of productivity.
"A large proportion of that improvement will have to come from an increased use of technology."
Yet UK spending on healthcare technology was per capita only half that of the US, Switzerland, Scandinavia or Germany.
The Gershon Report into public sector efficiency had identified £6.5 billion of savings in the Department of Health including the better use of staff time.
But this would require the application of technology.
Electronic patient records, appointment booking and prescription transfer would mean less wasted time spent checking patient information, less letters to type and send, and fewer lost prescriptions;
And making better use of NHS buying power by getting better value for money in the procurement of healthcare, facilities management and medical supplies.
Also ensuring NHS organisations share and rationalise back office services, such as finance, ICT and human resources.
He went on: "This is not rocket science. Appropriate technology effectively implemented could liberate huge sums for patient care.
"What is required if the NHS is to get real advantage from new technology is some simple operational auditing. The NHS can learn a great deal from the manufacturing sector in the management and utilisation of technology.
"Best practice can be mapped across to improve resource utilisation, operational efficiency and effectiveness.
"This will however need a new managerial cadre with the technological literacy to be able to undertake this important work."
And he added: "We have a golden opportunity.
"If we put our best people to work leveraging our world class R&D and bringing new technology and innovation to our health care system we will truly have an NHS fit for the 21st century and a vibrant healthcare technologies industry here in the UK." ..SUPL: