AbstractA controlled‐release delivery vehicle for water‐soluble osteogenic proteins from demineralized bone matrix was constructed using purified type I collagen. The water‐soluble proteins were isolated from a 4 M GdnHCl extract of bone matrix. Although the water‐soluble proteins were capable of inducing cartilage formationin vitro, they were incapable of inducing cartilage or bonein vivowhen implanted intramuscularly into mice in the absence of an appropriate delivery vehicle. The collagen‐based delivery vehicle alone was also incapable of inducing osteogenesisin vivo. However, when the water‐soluble proteins were incorporated into the delivery vehicle, the combination was capable of inducing cartilage and bone 76% of the time. These results demonstrate that it is possible to formulate a controlled‐release delivery vehicles for soluble bioactive factors which upon release interact with local res