ALBANY -- A judge's ruling regarding stem cell research may substantially slowdown New York's cutting edge Research and Development in the industry, and possibly create an insurmountable gap in its efforts to compete with California in the race for funding.  

According to the State Stem Cell Foundation, New York has been considered a "safe haven" for top stem cell researchers who want to be free of federal constraints.

But those constraints may begin affecting the State anyway.  In August, a judge ruled that all federally funded research on stem cells from human embryos is illegal. While that won't directly affect New York, it will slow down the entire process of discovery for scientists who will have to spend more time on the basic research that the feds used to do.  

Said Michelle Meyers, Ph.D., J.D., Harvard Law Fellow/Bioethics, "I think it's wrong as a matter of law."

An appeal of the ruling was heard by a federal appellate panel the first week in December.  In the meantime, research is allowed to continue. But New York faces tough competition from places like California, where a few years back voters passed a $3 billion bond to fund stem cell research over the next 10 years.  Since a bond isn't subject to an annual appropopriates process, California's researchers could move ever farther past New York's should the ruling stand.

James Fossett Ph.D., Professor of Public Policy/Rockefeller College said, "If you look at the website for the California Institute for Regenerative Medicine, they have a list...here are the people we've stolen away from other states!"  

No matter who wins this round, the losing side will almost certainly appeal, and experts believe this will lead to the issue being debated by the Supreme Court.