Development of the limb is guided by the apical ectodermal ridge (AER), which inhibits the differentiation of the mesoderm directly below it. In this way, development of the limb proceeds in a proximal to distal direction. In the diagram of an upper limb of a six-week embryo (above), the proximal mesenchyme is no longer under the inhibitory influence of the apical ectodermal ridge (AER). Note that the scapula, humerus, radius, ulna and carpal bones have begun to form as cartilage models from the condensing mesenchyme. By the 7th week of development they will begin to undergo endochondral ossification.
Note that the radius is on the pre-axial side of the limb and the ulna is on the post-axial side of the limb. Sonic hedgehog (Shh) from the zone of polarizing activity (ZPA) determines the formation of post-axial vs pre-axial structures. The post axial limb structures in the upper limb form earliest and include the humerus, ulna, and digits 2 through 5 and their related carpals and metacarpals.
The apical ectodermal ridge (AER) has split into 5 pieces to guide the development of each of the digits. Observe that the thumb is on the pre-axial side of the paddle shaped hand and the little finger is on the post-axial side. The phalanges remain undifferentiated at this stage.
Splitting of the apical ectodermal ridge into more than 5 segments is related to the appearance of extra digits, syndactyly.