At the moment it can take months or even years for conditions such as Alzheimer’s to be spotted via tests at the GP and referral to specialists.
The pilot project in Sussex will use a series of high tech memory tests and brain scans to spot the condition at a specialist clinic.
If it proves successful it could see such 'high tech centres' rolled out across the country to spot dementia so that patients receive drugs and help coping with the condition.
GPs are also being given iPad apps to test patients memory and trigger a referral for further tests in another pilot to improve diagnosis.
A mobile diagnosis vehicle will provide dementia assessments outside local GP surgeries, so that people get state-of-the art treatment on their doorstep, will also be trialled.
More than 350,000 people currently living with undiagnosed dementia are left without care and support.
It is estimated that by 2020 there will be nearly one million people with dementia, rising from the current level of 670,000.
The pilot project is part of the government-backed Biomedical Catalyst totalling £39 million that has been awarded to 32 businesses (SMEs) and universities to find new ways to tackle health problems.