An ex vivo method to induce the differentiation of cells that can be obtained from human cord blood tissue substantially free of blood, where the cells are capable of self-renewal and differentiation, and where the expression by said cells of genes encoding interleukin 8 ； crosslink 1； chemokine ligand 1 (motif C-X-C)； chemokine ligand 3 (motif C-X-C)； chemokine ligand 6 (CXC motif) and protein 3 induced by tumor necrosis factor alpha is increased in relation to a human cell that is a fibroblast, a mesenchymal stem cell or an iliac crest bone stem cell as characterized in a set of genes, to a chondrogenic phenotype comprising exposing said cells to one or more chondrogenic differentiation inducing agents wherein said cells further comprise the following characteristics: (i) potential to experience at least 40 duplications in the culture； (ii) binding and expansion in a coated or uncoated tissue culture vessel, wherein the coated tissue culture vessel comprises a coating of gelatin, laminin, collagen, polyiorithin, vitronectin or fibronectin； (iii) production of vimentin and actin of smooth alpha muscle； (iv) production of each of CD10, CD13, CD44, CD73, CD90, PDGFr-alpha and HLA-A, B, C, as detected by flow cytometry； (v). lack of expression of CD31, CD34, CD45, CD80, CD86, CD117, CD141, CD178, B7-H2, HLA-G and HLADR, DP, DQ as detected by flow cytometry； (vi) secretion of MCP-1, IL-6, GCP-2, IL-8, TIMP1, TPO, KGF, HGF, FGF, HBEGF and BDNF as detected by ELISA； (vii) lack of secretion of SDF-1 alpha, VEGF, TGF-beta2, ANG2 and PDGFbb as detected by ELISA； (viii). growth in about 5% to about 20% oxygen (ix). require L-valine for growth； (x) expression of PD-L2 and tissue factor as measured by flow cytometry； (xi) a decrease in the expression of the following genes in relation to a human cell that is a fibroblast, a mesenchymal stem cell, or an iliac crest bone stem cell as characterized in a set of genes: homeotic box 2 of the short stature； 27 kDa heat shock protein
