This paper presents a research, innovation, and collaboration initiative at Mälardalen University in Sweden, within embedded sensor systems for health (ESS-H). ESS-H uses the needs of patients and caregivers as a starting point for identification of problems, and from this the development of new sensor systems to monitor elderly and/or multi-morbid people in their home is performed. The development of these systems is performed together with industry in order to enable innovations to reach the market in a near future. The initiative has during its first three years resulted in about 100 scientific publications. There are several research prototypes on their way to become commercial prototypes, and both the industry and healthcare are happy to continue the collaboration. The concept seems promising as a model to be used when aiming at developing new technologies for the healthcare sector.