The invention provides methods for using Umbilical Cord Lining Stem Cells (ULSCs) to produce therapeutic factors including growth factors, cytokines, chemokines and extracellular matrix components. ULSCs are mesenchymal stem cells isolated from umbilical cord lining. They can be efficiently propagated and expanded in vitro. Under specific conditions ULSCs produce useful therapeutic factors that can be used to treat injuries and degenerative conditions.