Would the competition assessors favour, or disqualify, a product versus a service? I technology/product development out of scope?
Of course advancements in the technology or product concept are in scope, we just say it's not enough.
What we have been saying is that projects will have to have a digital service element as the driver of the project, which can motivate e.g. a market study or product development that would enable it.
What is out of scope for this competition is tech development for its own sake, but that is not the same as saying that tech development is out of scope, if you read the guidelines carefully.
What you must avoid is submit the same applications to two competitons, but if you would like to split an activity encompassing both in two separate applications, you could do that. However remember that this is going to be a very competitive process, so think carefully about whether that makes the individual applications stronger or weaker, or whether it is better to keep them together.