Tokyo ? Japan’s Education, Science and Technology Ministry will provide nearly $65 million over the next five years to promote further research on new technology to produce cells resembling embryonic stem cells from ordinary skin cells, sources said.

The ministry’s move came in the wake of an announcement earlier this week that a team of scientists led by Kyoto University professor Shinya Yamanaka became one of the first two groups to produce induced pluripotent stem cells, or iPS cells. The other team was at the University of Wisconsin-Madison in the United States.

The research was lauded as a scientific breakthrough that avoids ethical and practical obstacles seen in the use of human embryonic stem cells.

The Japanese Cabinet Office plans to quickly draw up a framework to put the technology to practical use and accelerate the pace of study, the sources said.

But a heated international race is expected in the iPS research field as U.S. President George W. Bush plans to give his backing to the U.S. team.

According to the sources, the focus of the research in the next five years includes:

¢ Mass production of human iPS cells.

¢ Tests on animals, such as monkeys, as part of cell regeneration medical studies.

¢ Establishing an iPS cell bank.

Research also will focus on clearing safety concerns.

Even though iPS cells involve fewer ethical questions than embryonic cells, concerns remain because one gene used in the reprogramming process is the oncogene, which embeds cancer in the genetic information that is passed along.

During the current fiscal year, the ministry will accept applications from research institutes in various fields that would be willing to take charge of putting iPS cells into practical use. The applications will then be screened by an expert panel, according to the sources.

Meanwhile, the Cabinet Office will soon start discussing safety standards to permit regeneration research featuring human iPS cells to proceed smoothly to practical use, the sources said.