AbstractJapanese industrial competitiveness is analysed using the electronics industry as an example. The analysis shows that the industrial competitiveness is due to a combination of factors, including development and upgrading of manufacturing facilities, promotion of skills and organisational learning and nurturing new industries and technologies.Some of the most important lessons that can he derived from the Japanese experiences are: comprehensive technology monitoring and forecasting are needed to identify thrust areas, and investment banks, government and industries need to have a strategic vision of where the industry should focus; industry-government interactions have to be mutually supportive, consensus oriented and participative but not coercive; and flexible production or automation is the direction in which advanced industrial economies are moving.