A distinction is made between pilot and demonstration projects based on the level of development of the respective technology:
The purpose of a pilot project is to test a new technology or solution. These projects are implemented at a scale that facilitates the assessment of scientific, technological, economic, or social data that cannot be carried out in laboratory tests.
The purpose of a demonstration project is to test a new technology or solution under market conditions. These projects are implemented at a scale of 1:1 and permit a comprehensive technical, economic and social assessment of the suitability of the technology or solution for introduction onto the market. They also yield valuable information regarding the capability of the system and its economic viability, and help draw the attention of potential users to a new technology, product, organisational structure or instrument.