Electronics related technologies are becoming so central to industrial development that many developing countries are tempted to make them the cornerstone of their future strategies, as the steel industry was in the post‐decolonisation era. However, it is important to distinguish between the different sub‐sectors of the industry. In some, for example semiconductors, the innovation of automated technologies looks likely to erode the established comparative advantage of developing countries with low wage costs. In other sectors, such as consumer electronics, the signs look more hopeful. The high costs (both monetary and skilled labour) of entering the industry caution against misplaced strategies which emphasise the expansion of inappropriate sub‐sectors in developing countries.