Recent molecular insights on how the ectodermal layer is patterned in
vertebrates are reviewed. Studies on the induction of the central nerv
ous system (CNS) by Spemann's Organizer led to the isolation of noggin
and chordin. These secretory proteins function by binding to, and inh
ibiting, ventral BMPs, in particular BMP-4. Neural induction can be co
nsidered as the dorsalization of ectoderm, in which low levels of BMP-
signaling result in CNS formation. At high levels of BMP signaling the
ectoderm adopts a ventral fate and skin is formed. In Xenopus the for
ming neural plate already has extensive dorsal-ventral (D-V) patternin
g, and neural induction and D-V patterning may share common molecular
mechanisms. At later stages sonic hedgehog (shh) plays a principal rol
e in D-V patterning, particularly in the neural tube of the amniote em
bryo. A great many transcription factor markers are available and mous
e knockouts provide evidence of their involvement in the regional spec
ification of the neural tube. Recent evidence indicating that differen
tiation of posterior CNS is promoted by FGF, Wnt-3a, and retinoic acid
is reviewed from the point of view of the classical experiments of Ni
euwkoop that defined an activation and a transformation step during ne
ural induction. (C) 1997 Academic Press.