I get this question frequently. It’s usually triggered either because the tape device can’t hold an entire backup set or because the time required for backup interferes with productive work. Most of the time this can be easily remedied by a larger or faster storage device, but someone is bound to bring up the idea of differential backups.
The idea is that you create a full backup that has everything, and from then on, you only backup the files that have changed. Presumably that’s a smaller set of files and therefore this solves the space or time problems. Usually the full backup is refreshed on some schedule and the process starts again. There are variants on the theme; for example the differential may include all files that have changed since the last full backup rather than just those that have changed since the last differential. That sort of scheme eventually ends up with the differential containing any and all files that ever change, no matter how infrequently; the full backup is the source of everything else.