Time‐dependent x‐ray and radio observations of accreting sources give considerable insight into how jets might be produced, both in low‐luminosity and high‐luminosity situations. I discuss recent observations of binary x‐ray sources and AGN that may have a direct bearing on jet production, and I review the theoretical efforts that have been made to understand them. While it is certainly true that jet production can be understood only with a good accretion model, I also argue that accretion onto compact objects cannot be understood without fully taking into account the production of a jet. Jets are probably a fundamental aspect of some accretion modes.In a quest for an integrated model for accretion and jet production I introduce a new accretion concept, the magnetically‐dominated accretion flow or MDAF, as an alternative to current models for the low/hard/plateau state of accreting black holes (and the atoll source island state). Although much quantitative work needs to be performed before the concept can evolve into a true model, MDAFs have a number of phenomenological advantages. In addition to providing explanations for several X‐ray timing and radio properties of accreting sources, the MDAF suggests a model for the infrared flares in the Galactic center. © 2004 American Institute of Physics