LONDON (Reuters) - Prime Minister Tony Blair (news - web sites) waded into the ethical minefield of stem cell research on Friday, backing the technology and vowing he would push for Britain to keep its position as Europe's leader in biotechnology.

Addressing an industry conference in London, Blair said that while some people had ethical objections, there were massive potential benefits of research into stem cells -- master cells that can generate most of the 200 cell types in the human body.

"We must recognize that stem cell research has huge potential to improve the lives of those suffering from disease,'' Blair said.

"There are...strong ethical arguments in favor as long as clear and effective regulation remains in place.''

Blair's support for the science -- which involves cloning and research on human embryos -- is sure to draw an angry response from pro-life groups and fuel an ethical debate over how far scientists should interfere with nature.

But his stance won applause from biotechnology companies which view the issue as a litmus test of the government's commitment to the industry.

"He made his support unequivocal. He came out very clearly saying 'You must support the science and afterwards we can bring in the controls','' Crispin Kirkman, chief executive of the Bioindustry Association, told Reuters.

"That's something we've been arguing for as an industry for some time.''

The issue is topical, with members of parliament debating stem cell research and Europe's first stem cell company -- ReNeuron (REN.L) -- having listed on London's Alternative Investment Market on Thursday.

Better Medicines

The British prime minister said biotechnology could deliver better, more effective medicines and improve food production and clean up the environment.

He said the government would invest more in scientific research -- with detailed allocations for the science budget due next week -- and promised to fight for the biotech industry, provided executives engaged in a public debate on the ethics of their innovations.

"Biotechnology is the next wave of the knowledge economy and I want Britain to become its European hub...We don't intend to let our leadership fall behind and are prepared to back that commitment with investment,'' he added.

Therapeutic cloning and the use of stem cells is a potentially revolutionary new way to treat serious illness.

British experts argue scientists should be able to use early human embryos in research to develop new treatments for a host of diseases, ranging from Parkinson's and diabetes to arthritis and strokes.

The chief medical officer, Liam Donaldson, has recommended the law be extended so human embryos can be cloned and used to derive stem cells. At present, scientists can only use early human embryos to study specific problems such as infertility, congenital diseases, contraception and prenatal diagnosis.

Blair has promised MPs a ``free vote'' -- or vote of conscience -- on whether scientists should be allowed to clone human embryo cells for this broader spectrum of research.

Many remain opposed, including Conservative MP Philip Hammond.

"I do not believe that a case has been made with a standard of proof which is adequate to overcome the moral concerns and very real fears that I have about where this road will lead us,'' he told parliament.

(From Yahoo)