The Light Glove is in the development since quite a while, but it now start to gain recognition. The Light Glove was awarded a CES 2004 Design Award in the Accessibility Category.

The Lightglove attaches like a large watch underneath one or both wrists and senses finger position and hand motion to generate typing and pointing input for virtually ANY electronic device. Wireless operation offers cordless freedom. Each Lightglove adjusts for your hand size and shape using the accompanying software to create the perfect fit just for you. Yes, it fits like a glove made of light without anything obstructing your hand.
A light beam illuminates a column for each finger, and a reflection is detected when a finger is lowered into the beam to "press a key". Software decodes the reflected light and highlights the activated key cell on your system video monitor.
More Details on Light Glove Site.

Watch this video to see it in action.

the Light Glove inventor is currently looking to license the technology to manufacturing companies.




See Also:
VR Glove - This one seems to work
The Future: Communication Glove - CommanderGauntlet
Virtual Reality Therapy for Arachnophobia