The cellular interactions that control the differentiation of dorsal c
ell types from neural progenitors have been examined in neural plate e
xplants. Certain genes that are expressed in the dorsal neural tube ar
e initially expressed uniformly within the neural plate and appear to
achieve their dorsal restriction through a Sonic hedgehog (SHH)-mediat
ed repressive signal from the notochord. The acquisition of definitive
dorsal cell fates, however, requires a contact-dependent signal from
the epidermal ectoderm, BMP4 and BMP7 are expressed in the epidermal e
ctoderm, and both proteins mimic its inductive activity, BMP4 and a re
lated gene, DSL1, are subsequently expressed by cells in the dorsal ne
ural tube. The differentiation of dorsal cell types, therefore, appear
s to be initiated at the neural plate stage and to involve the opponen
t activities of a BMP-mediated dorsalizing signal from the epidermal e
ctoderm and a SHH-mediated ventralizing signal from the notochord.