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In an effort to woo researchers and investors to Illinois, Gov. Rod Blagojevich Tuesday signed a bill that allows public funding of research on all types of stem cells, including controversial embryonic stem cells.

Supporters hope the legislation, sponsored by state Sen. Jeff Schoenberg (D-Evanston) and state Rep. Tom Cross (R-Oswego), will pave the way for groundbreaking research that has been caught in the middle of a national political debate.

"Stem-cell research has limitless potential to help cure devastating diseases -- from Parkinson's to diabetes and even many forms of cancer," Blagojevich said in a written statement. "Since the federal government continues to stall the medical advancements that will come with stem-cell research, it is up to Illinois to take action."

In June, President Bush vetoed legislation for the second consecutove year that would have eased restrictions on federal funding for embryonic stem-cell research.

Although no money is directly tied to the Illinois law, the bill's sponsors said they would seek to secure millions in funding over the next few months.

The measure, which bans human cloning, ensures researchers could...