It is becoming ever clearer that Schwann cells and Schwann-cell precursors
are an important source of developmental signals in embryonic and neonatal
nerves. This article reviews experiments showing that these signals regulat
e the survival and differentiation of other cells in early nerves. The evid
ence indicates that glial-derived signals are necessary for neuronal surviv
al at crucial periods of development, that they regulate the molecular and
functional specialization of axons and that they control the maturation of
the perineurial sheath that protects nerves from inflammation and unwanted
macro-molecules produced in the surrounding tissues. Furthermore, an autocr
ine survival circuit enables Schwann cells in postnatal nerves to survive i
n the absence of axons, a vital requirement for successful nerve regenerati
on following injury. The molecular identity of these signals and their rece
ptors is currently being determined.