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Is there a subtle difference between these two concepts or are they basically the same thing? When I mean differentiated, I don't mean terminally differentiated.

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lineage restricted stem cells are multipotent i.e they can give rise to only a few types of cells. Embryonic stem cell to hematopetic cell is also differentiation. Differentiation just means becoming into a specialized cell which can even be a lineage restricted multipotent stem cell. –  WYSIWYG Aug 26 '13 at 14:33
    
So they are basically the same concept? –  Damian Kao Aug 27 '13 at 7:06
    
differentiation leads to lineage restriction –  WYSIWYG Aug 27 '13 at 16:23
    
I agree with @WYSIWYG and add that I tend to see 'lineage restriction' usually as a function of assay conditions (ie the precursor cell population could become X and Y but now the cell can only become X, so the cell is lineage restricted) whereas differentiation is a function of phenotype (i.e. looks more like maturing cell X than maturing cell Y). But the concepts are clearly inter-related –  PlaysDice May 30 at 14:33
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