Health service managers and industry face significant challenges in implementing Hand delivering innovations for healthcare; shrinking budgets mean there is a need to understand more clearly the value of innovations. An articulation of the value proposition, that is the value created for users by technology, is the key starting point for current thinking on open and innovative business models. The aim of this research is to develop a framework for 'valuing' a new medical device at the concept stage that balances benefit to the healthcare provider against commercial costs. This paper proposes that appropriate evidence-gathering activities such as determination of the clinical value proposition and early health economic tools such as the 'headroom method' can be utilised as part of the development process to contribute to the early stage estimates of value beneficial to both the health service and industry decision makers.