Cell differentiation refers to the process by which unspecialized cells (such as stem cells) become specialized cells with specific functions. Differentiation is a key aspect of regenerative medicine because it allows scientists to convert stem cells into specific cell types that can be used to repair or replace damaged or diseased tissue.
Stem cells can be induced to differentiate into specific cell types in a laboratory setting by exposing them to specific combinations of signaling molecules and growth factors. These differentiated cells can then be transplanted into a patient to replace or repair damaged or diseased tissue.
Researchers use this differentiation process as an application for the treatment of various diseases. For example, scientists have been able to differentiate stem cells into insulin-producing cells to treat diabetes (ref), into dopamine-producing cells to treat Parkinson's disease (The Guardian), and even into myocytes, chondrocytes and/or osteocytes to help repair injuries to our muscles, bones and joints. These are some of many regenerative medicine application using cell differentiation.
It is still an active area of research to improve the understanding of how the cells can be directed to differentiate into specific cell types in a more efficient and controlled manner, but cell differentiation is poised to play an important role in regenerative medicine applications.