Bone matrix compositions and, more specifically, demineralized bone matrix (DBM) having increased osteoinductive capacity and methods for its production are provided. Specifically, DBM derived from cortical bone from the periosteal layer of bone are provided. Compositions comprising a disproportionate amount of DBM prepared from bone derived from the periosteal and/or middle layer of bone are provided. Preparations of and methods of use of periosteal DBM compositions are disclosed.
