A method of generating otic progenitor cells comprising the sequential steps of: i) culturing a progenitor cell under conditions sufficient to inhibit Wnt signalling and activate FGF signalling for a first time period sufficient to induce upregulation of one or more otic cell markers selected from PAX2, PAX8, FOXG1 and SOX2; ii) culturing the progenitor cell of step i) under conditions sufficient to activate Wnt signalling and reduce FGF signalling relative to step i) for a second time period sufficient to maintain upregulated expression of said one or more otic cell markers selected from PAX2, PAX8, FOXG1 and SOX2; wherein: conditions sufficient to inhibit Wnt signalling comprise culturing said progenitor cell in a culture medium comprising one or more Wnt inhibitors; conditions sufficient to activate FGF signalling comprise culturing said progenitor cell in a culture medium comprising one or more FGFs; conditions sufficient to activate Wnt signalling comprise culturing said progenitor cell in a culture medium comprising one or more Wnt activators; and conditions sufficient to reduce FGF signalling comprise culturing said progenitor cell of step ii) in a culture medium comprising one or more FGFs at a lower concentration than said one or more FGFs present in said culture medium of step i). i) culturing a progenitor cell under conditions sufficient to inhibit Wnt signalling and activate FGF signalling for a first time period sufficient to induce upregulation of one or more otic cell markers selected from PAX2, PAX8, FOXG1 and SOX2; ii) culturing the progenitor cell of step i) under conditions sufficient to activate Wnt signalling and reduce FGF signalling relative to step i) for a second time period sufficient to maintain upregulated expression of said one or more otic cell markers selected from PAX2, PAX8, FOXG1 and SOX2; wherein: conditions sufficient to inhibit Wnt signalling comprise culturing said progenitor cell in a culture medium comprising one or more Wnt inhibitors; conditions sufficient to activate FGF signalling comprise culturing said progenitor cell in a culture medium comprising one or more FGFs; conditions sufficient to activate Wnt signalling comprise culturing said progenitor cell in a culture medium comprising one or more Wnt activators; and conditions sufficient to reduce FGF signalling comprise culturing said progenitor cell of step ii) in a culture medium comprising one or more FGFs at a lower concentration than said one or more FGFs present in said culture medium of step i). conditions sufficient to inhibit Wnt signalling comprise culturing said progenitor cell in a culture medium comprising one or more Wnt inhibitors; conditions sufficient to activate FGF signalling comprise culturing said progenitor cell in a culture medium comprising one or more FGFs; conditions sufficient to activate Wnt signalling comprise culturing said progenitor cell in a culture medium comprising one or more Wnt activators; and conditions sufficient to reduce FGF signalling comprise culturing said progenitor cell of step ii) in a culture medium comprising one or more FGFs at a lower concentration than said one or more FGFs present in said culture medium of step i).