Premature babies have a hard time getting the oxygen they need as their lungs are not sufficiently developed.
Today you can only use X-rays to see how much air babies' lungs contain, but these types of tests could be done using laser light, researchers said.
"Multiple X-ray examinations involve a certain increase in the risk of developing cancer, not least in small children. Decreasing the number of X-ray examinations would be a major advantage," said Emilie Krite Svanberg, from Lund University in Sweden.
Technology that measures oxygen bound in the blood already exists. Free oxygen that exists in cavities such as lungs is much more difficult to measure.
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Here, the submitted light must be at exactly the right wavelength - 760.445 nanometre.
The researchers are the first to successfully perform these types of measurements. Trials with healthy newborn babies have shown that the method works.
"We hope that the measurements will be possible to perform automatically, by using small transmitters attached to the baby's chest," she said.
The measurements could help determine whether a premature baby needs treatment in order to improve their breathing.
If intensive interventions are necessary, such as inflating collapsed parts of the lungs, light measurements could also be used to minimise the risk of injury from the treatment.
The blood flow to less vital parts of the body, such as arms and legs, decreases, which can be measured through a newer method that uses short laser pulses.
"In cases of circulatory failure, time is crucial. The faster healthcare staff realise the oncoming crisis, the better the chances of the patient to survive," said Krite Svanberg.
By measuring the oxygen supply, in for instance the forearm, it will be possible to detect signs of medical deterioration at an early stage and thereby save lives, she said.