MADISON, Wis. -- Stem cell research pioneer James Thomson said he's started a company to create blood products from human embryonic stem cells.

Gov. Jim Doyle appeared with Thomson at a news conference to announce the state was awarding a $250,000 grant and $750,000 loan to the company, Stem Cell Products, Incorporated.

The company is a venture of Thomson, two other scientists and a venture capital firm. They hope to make blood platelets and red blood cells from embryonic stem cells that could one day be used to treat wounded soldiers and others who need blood transfusions.

"The important point is that we know that it can be done. It's a matter of technology development, engineering, money and time. We intend to make it happen fast, and we intend to make it happen here," said Nick Seay, senior vice president of Stem Cell Products, Inc.

Platelets are cellular fragments that make people's blood clot. Often used to treat those who are critically wounded, they are in short supply.

Doyle, Green Trade Barbs Over Stem Cell Issue

Tuesday's announcement put the stem cell issue back in the center of the campaign for governor.

The finger pointing between the candidates started with last week's debate in Milwaukee, where Doyle and Green traded barbs over stem-cell research funding.

Both candidates said they have met with families dealing with serious illness, families who could benefit from advances in medical research.

But in his closing remarks at the debate, Green accused Doyle of exploiting it as a campaign issue.

"One of the questions I got in meeting with those families, all of them facing diabetes on a daily basis, they said, 'Why is it that Gov. Doyle tries to turn this into a political issue?' And I said, 'You know, quite frankly, politicians look for issues, leaders look for answers,'" Green said,

Doyle responded to Green's jab Tuesday.

"The reason it's a political issue is because people like Congressman Green and others have repeatedly introduced bills in Congress (and) bills in the state Legislature trying to stop the advance of this research," Doyle said.

Doyle said stem-cell research is an issue resonating with voters, calling it an "in the gut" issue for Wisconsin families.

Green said he supports research on the existing embryonic stem-cell lines developed at the University of Wisconsin and that he supports funding of umbilical cord and adult stem-cell research.