Previous research in various industrial contexts has shown that companies needs to achieve both exploitation of current knowledge, and exploration of new knowledge to be successful in changing conditions. In the construction sector exploration activities are sometimes conducted in demonstration projects. The project based nature of the sector is, however, argued to be one common obstacle to exploitation and diffusion of knowledge and innovation. In Sweden, the government has financed different demonstration projects, through The National Board of Housing, Building and Planning, in order to facilitate development and diffusion of new knowledge. This paper sets out to compile the results of a previous study of 11 conducted demonstration projects and establish a framework and research questions for a follow up study of the demonstration projects six years after their completion in order to assess the extent of knowledge diffusion. The previous study is based on interviews with the clients’ project managers and document studies of reports published from the demonstration projects. The tentative findings show that the projects involved product, process, organizational/contractual and financial/revenue innovations. The result also shows that the investigated projects were reported as successful and therefore could serve as base for diffusion of new knowledge. In the second step the study will investigate if and how knowledge was diffused from the demonstration projects among the involved actors.