The document discusses neural competence and induction during organ development. It provides the examples of eye development to illustrate these concepts. The optic vesicle acts as an inducer by signaling to nearby ectoderm tissue, causing it to form a lens. However, only certain regions of ectoderm, like in the head, are competent to respond to this signal. The Pax6 protein is important for conferring competence on ectoderm. There are also reciprocal interactions, like the lens inducing the optic vesicle to form the optic cup, and sequential inductive events in eye development involving multiple tissues over time.