The binding of epidermal growth factor (EGF) or an EGF-like growth factor to the EGF receptor is the initial event which leads to receptor activation, and consequently the induction of cell growth. In order to study this binding interaction in detail, we produced the extracellular domain of the EGF receptor (EGFR) using the baculovirus expression system. Affinity-labeling and Western-blot analyses revealed that the baculovirus-infected insect cells secrete active EGFR extracellular domain relatively efficiently, however a significant amount of inactive EGFR extracellular domain is retained within the cells. The apparent dissociation constant (&) of the secreted EGFR extracellular domain for EGF and transforming growth factor a (TGF-a), as determined using an immobilized receptor binding assay, was approximately 200 nM. Interestingly, this Kd value is 30-40-fold lower than that of the full-length EGFR derived from detergent-solubilized A431 cell membranes. The stoichiometry of binding of the EGFR extracellular domain to EGF and TGF-a was examined by band-shift analysis on non-denaturing PAGE and was estimated to be 1 : 1. We have also shown, using sedimentation equilibrium analysis, that ligand binding induces significant dimerization of the EGFR extracellular domain. Finally, we carried out site-specific mutagenesis on the EGFR extracellular domain in order to define the ligand-binding region. We identified amino acid residues which are close to the binding site since they are common to the epitopes of several ligand-competitive monoclonal antibodies. However, these residues do not contribute directly to ligand binding since the affinity of the mutated EGFR extracellular domain for EGF and TGF-a was unaffected.Binding of epidermal growth factor (EGF) to the extracellular domain of its 170-kDa receptor (EGFR) leads to activation of the receptor cytoplasmic tyrosine kinase, substrate phosphorylation and ultimately mitogenesis (reviewed by Carpenter and Cohen, 1990;Ullrich and Schlessinger, 1990). Fundamental questions concerning the initial EGFEGFR interaction which leads to receptor activation can be addressed using a truncated form of the EGFR which consists of only the extracellular ligand-binding domain of the receptor. We have utilized the baculovirus expression system to produce large quantities of the extracellular domain and this has enabled us to study the affinity and stoichiometry of ligand binding, ligand-induced dimerization, as well as to attempt to identify receptor residues which are critical for ligand binding.In relation to the issue of affinity, the dissociation constant (Kd) of the soluble EGFR extracellular domain for EGF