In order to study the effect of the permeability of the conduit membrane on nerve regeneration, two types of nerve conduits from bovine tendon collagen were prepared which have distinctly different permeability properties. The authors report here the results of in vitro and in vivo characterizations of these two types of nerve conduits with the objectives of developing an experimental model for investigating the effect of the local physiological environment on nerve regeneration and of developing suitable off-the-shelf prostheses for clinical repair of the damaged peripheral nerves.