SEATTLE – Christine Gregoire and Dino Rossi clashed over the sensitive issue of stem cell research as the two spoke Friday to the state’s largest biotechnology group.

While the gubernatorial candidates addressed several questions relevant to biotech, it was the last one posed by Greg Sessler, chairman of the Washington Biotechnology and Biomedical Association, that brought out one of the candidates’ sharpest differences.

Sessler asked whether the candidates supported state-funded research involving embryonic stem cells.

“I do support stem cell research in the state of Washington,” Gregoire said unequivocally.

Rossi responded that Gregoire is “callously playing on people’s emotions” with the stem cell issue.

Gregoire, the Democratic attorney general, said state government can support research at statewide institutions such as the University of Washington. She has pledged to create a $1 billion “Life Sciences Discovery Fund” financed with tobacco settlement money. Part of that money could be used to set up a institute for stem cell work.

The state-funded research could help Washington keep pace with other areas that are moving forward with stem cell research, Gregoire said. On Nov. 2, for example, California voters will decided whether to approve a $3 billion bond to fund such research in that biotech-heavy state.

“We will maintain our leadership. We will compete with any state and any other nation,” Gregoire said.

Rossi said the state doesn’t need to compete with bigger states for the controversial research work.

“Putting half a billion dollars of taxpayers’ money into stem cell research is akin to investing money into automotive research to compete with Detroit,” the former Republican state senator said.

Instead, he said, the state’s institutes should focus on biotech therapeutics and diagnostics – research in which Washington scientists have a long track record of discoveries.

Missing from Rossi’s comments Friday was how he feels about stem cell research in general.

The anti-abortion candidate has previously said he wouldn’t block legal, privately funded stem cell research, and that he supports work with adult stem cells. In a statement from his campaign office, the candidate said he has “reservations” about embroyonic stem cells, however.

Rossi said the best thing he can do to help the state’s biotech companies is improve the state’s business climate.

“I truly believe that, together, we can restore the greatness this state once knew,” he said.

Gregoire said she would endeavor to make Washington the “epicenter of life sciences in the world.”

“Let us find a cure to many of these diseases, and let us spur our economy,” she said.

Reporter Eric Fetters: 425-339-3453 or fetters@heraldnet.com.