In this alternate timeline, it would probably be the U.S. catching up to the Soviets on bioweapon technology, rather than them catching up to us as it was with nukes. Not that there was much time difference, and this alternate timeline would be the same. The Soviets had a biological warfare program since the 20s whereas the U.S., while it did experiment somewhat with bioweapons in WWI and the interwar period, didn't have a biological warfare program until 1943. The bioweapon capabilities of the U.S. and Soviet Union would quickly become evenly matched during the early stages of this alternate Cold War, obviously because this would be what the arms race would be focused on instead of nukes.
https://en.wikipedia.org/wiki/United_States_biological_weapons_program
https://en.wikipedia.org/wiki/Soviet_biological_weapons_program
As you said, both sides would be looking to get any kind of advantage over each other. While bioweapons could be the primary avenue for that in an alternate timeline without nukes, other unconventional warfare programs would be viable such as kinetic bombardment or microwave weapons.
https://en.wikipedia.org/wiki/Kinetic_bombardment