Bradford companies are being invited to explore the huge possibilities offered by electronic tagging technology which was originally developed to monitor criminals and track stolen cars.

Organisations dealing in everything from health care and food to books and conferences can all benefit from radio frequency identification (RFID), according to a new, Government-backed agency to promote the technology.

AIM UK, the trade association for the automatic identification industry, is based in Boothtown, Halifax, and run by former Shipley man Ian Smith, who is now engaged setting up a regional centre for excellence in RFID.

He will head a team of experts who will visit businesses and organisations to give free advice on how they can exploit the technology.

RFID involves attaching electronic tags or chips to products so they can be tracked throughout the manufacturing or supply chain.

It is poised to play a vital role in the NHS by improving patient identification.

Mr Smith said the modernisation of the NHS was an excellent opportunity to begin introducing RFID technology.

"Potentially it could save tens or hundreds of millions of pounds a year."

He said a tiny chip could be inserted beneath a patient's skin and later removed.

"Wherever that patient goes in the hospital they can read where they are, what their medical problem is and what their medication is."

The system is increasingly used in the food industry because of demands for ever-higher levels of food safety, quality assurance and traceability, said Mr Smith.

"To meet these requirements companies need to be able to trace their products through every stage from farm to fork. RFID enables this to be done quickly and efficiently."

He said that on November 17 AIM UK would be inviting MPs and peers to show them the widespread possibilities.

"RFID is the fastest-growing auto-ID technology," said Mr Smith, who founded AIM 21 years ago.

"It's quick, accurate and offers a rapid return on investment. We'll show industry what a massive improvement it can make to efficiency and profitability.

"We have backing from Yorkshire Forward and, as part of the deal, we're putting together a team of regional experts offering a free advice service to businesses."

Mr Smith, who has lectured widely abroad, has just spent three years co-ordinating a European Commission project on identification.

He said the Government believed RFID would be one of the most significant technical developments of the next decade, with revolutionary potential for business, industry, commerce and the public sector.