This note analyses the recent experience of the United States electronics industry in terms of a ‘product cycle’ view of international competitiveness. This view starts from the observed fact that, as a product passes from invention to maturity, the rate of growth of demand will vary ; it will begin slowly, accelerate for a time, and then slow down again when the product becomes mature. The proposition put forward here is that these phases of growth tend to be accompanied by changes in the relative importance of the various factors of production-skilled and unskilled labour, capital, and management ability. These changes-set out in abbreviated form in table 1 and chart 1-have implications for international competitiveness.