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State investment in stem cell research could lead to lifesaving medical advances and drive economic growth in Pennsylvania, scientists and business analysts told the state House Democratic Policy Committee Wednesday.

Fifteen legislators gathered yesterday morning at the University of Pittsburgh to hear the first round of expert testimony about the impact and potential benefits of stem cell research a day after touring the school's McGowan Institute of Regenerative Medicine in Hazelwood, a world leader in developing cell-based therapies for disease.

Rep. Dan Frankel, D-Squirrel Hill, convened the four-hour public hearing to give his colleagues a basic tutorial in stem cell science and to explore the possible economic benefits and ethical quandaries of public investment in the emerging field.

"What we need to do is retain, continue to recruit and nurture the research that we have now," Frankel said.

Frankel plans to introduce a proposal that would tax cigars and smokeless tobacco to generate $35 million to $65 million a year to finance a bond issue to pay for stem cell research.

In 2001, President Bush imposed limits on federal dollars for embryonic stem cell research, which requires the destruction of week-old embryos left over from in vitro fertility treatments.

Embryonic stem cells are unprogrammed cells with the capacity to become cells for virtually all body tissues and organs. They also can make copies of themselves indefinitely.

Many researchers believe these cells could hold the key to treating such diverse maladies as Parkinson's disease, Alzheimer's, spinal cord injuries and diabetes.

Adult stem cells are free of the ethical concerns surrounding embryonic stem cells, but researchers question whether they hold the same therapeutic potential.

The hot-button issue came to the national forefront again last week after Senate Majority Leader Bill Frist, R-Tenn., voiced his opposition to Bush's restrictions, which already have prompted some states -- California, Massachusetts, New Jersey and Connecticut -- to develop their own initiatives to support stem-cell research.

Dr. Calvin Johnson, secretary of the Pennsylvania Department of Health, said Gov. Ed Rendell supports such an effort here. That could prevent the exodus of stem cell researchers -- along with the intellectual property and revenue they generate -- to more permissive states or other countries, he said.

"Pennsylvania is well-positioned to cement its position as a leader in stem cell research," Johnson said. "At a minimum, we must maintain our current infrastructure. At best, we must grow it."

Eminent stem cell pioneer John Gearhart, a professor of medicine at John Hopkins University's McKusick-Nathans Institute of Genetic Medicine in Baltimore, wowed the audience of about 50 people with videotape of paralyzed mice that regained use of their rear legs after he injected their spinal cords with human stem cells.

Gearhart then urged the policy committee to encourage stem cell research in order to swiftly move therapies like this from animals in the lab to patients in the clinic.

"It's going to take years; that's just the process," Gearhart said. "But just like other areas of biomedical research, the early stages have to be robustly going on."

Alan Russell, director of the McGowan Institute, asked the legislators not to limit the scope of any money they might allocate to just one cell type. He said the business of creating and delivering stem cell therapies could one day generate anywhere from $10 billion to $200 billion annually.

"I truly believe stem cells will revive the economy of our region," Russell said. "I believe we're not talking about 'if' -- we're talking about 'when.' "

Democrats on the policy committee who are opposed to abortion, such as state Rep. Tom Tangretti, D-Hempfield, and expert witness Dr. Ralph Capone, a fellow of the American College of Physicians, voiced moral objections about the use of embryonic stem cells.

Frankel said the committee likely will hold a second hearing in September in Philadelphia. Lawmakers could vote on a plan to fund stem cell research as part of next year's budget, he said.

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