During neural induction, the 'organizer' of the vertebrate embryo instructs
neighbouring ectodermal cells to become nervous system rather than epiderm
is. This process is generally thought to occur around the mid-gastrula stag
e of embryogenesis(1). Here we report the isolation of ERNI, an early respo
nse gene to signals from the organizer (Hensen's node). Using ERNI as a mar
ker, we present evidence that neural induction begins before gastrulation -
much earlier in development than previously thought. We show that the orga
nizer and some of its precursor cells produce a fibroblast growth factor si
gnal, which can initiate, and is required for, neural induction.