The cranial sensory ganglia, in contrast to those of the trunk, have a dual
embryonic origin arising from both neurogenic placodes and neural crest. N
eurogenic placodes are focal thickenings of ectoderm, found exclusively in
the head of vertebrate embryos. These structures can be split into two grou
ps based on the positions that they occupy within the embryo, dorsolateral
and epibranchial, The dorsolateral placodes develop alongside the central n
ervous system, while the epibranchial placodes are located close to the top
of the clefts between the branchial arches. Importantly, previous studies
have shown that the neurogenic placodes form under the influence of the sur
rounding cranial tissues. In this paper, we have analysed the nature of the
inductive signal underlying the formation of the epibranchial placodes, We
find that epibranchial placodes do not require neural crest for their indu
ction, but rather that it is the pharyngeal endoderm that is the source of
the inductive signal. We also find that, while cranial ectoderm is competen
t to respond to this inductive signal, trunk ectoderm is not. We have furth
er identified the signalling molecule Bmp7 as the mediator of this inductiv
e interaction. This molecule is expressed in a manner consistent with it pl
aying such a role and, when added to ectoderm explants, it will promote the
formation of epibranchial neuronal cells. Moreover, the Bmp7 antagonist fo
llstatin will block the ability of pharyngeal endoderm to induce placodal n
euronal cells, demonstrating that Bmp7 is required for this inductive inter
action. This work answers the long standing question regarding the inductio
n of the epibranchial placodes, and represents the first elucidation of an
inductive mechanism, and a molecular effector, underlying the formation of
any primary sensory neurons in higher vertebrates.