The subject of this report is the impact of microelectronic technology on the process of skill formation with particular reference to two industries: banking and textiles. A recent research effort sought to identify and understand how changes in the structure and nature of skills were affecting the process of skill formation and the balance of training and preparatory responsibilities between firms and the education system. Findings indicated that the relationship between new technology and flexible production was ambiguous. In textiles, modernization was underway before the industry started its current efforts to promote flexibility and quick response. In banking, microelectronics was a crucial factor in the explosion of products and services available from financial institutions. In textiles, skilled jobs required more training and higher skills. In banking, the reduction of low-level, unskilled jobs was still more striking. When the organization of production was changed, in both industries, lower-level workers had to have an aptitude for a broader set of tasks and a more abstract understanding of their jobs. Banks have reduced their long-term commitment to workers and have cut back on internal promotions. The textile industry is also having problems with internal promotion because its unskilled work force cannot acquire additional skills through informal on-the-job training. (YLB)