Scientists from Newcastle University have successfully converted stem cells into large quantities of Schwann cells, which are a type of cell used in nerve repair.
When peripheral nerves - those outside the brain and spinal column - are damaged, they can be treated using grafts taken from nerves elsewhere in the body.
"Many people sustain peripheral nerve injuries - in the arms, legs, and torso. If it is a small injury they can sew together two stumps of the nerve and it regenerates. If it is a large injury, the gap needs to be bridged," Professor Maya Sieber-Blum was quoted as saying by 'The Times'.
Along with her colleagues, Sieber-Blum demonstrated that the hair follicle can instead be a source of stem cells that can then be cultured in their millions and converted into a homogenous population of nerve repair cells.
The next step will be to create a scaffolding on which these cells can then grow nerves - to bridge the gap between damaged parts - and see if the technique works in the body.