This paper demonstrates that production life-cycle models provide a conceptual framework to analyze systematically the interrelationships between industrial and technological change and human resources. Section II presents the life-cycle model, focusing on its implications for the types and level of employment and skill requirements in an area. Section III uses the life-cycle framework to assess the evidence on and implications of various state programs designed for the recruitment of firms, high tech job creation, and assistance to established firms. Trends in state efforts, life-cycle implications, and potential of the state strategies are discussed for each program type. Section IV provides guidelines for states in developing effective competitiveness strategies for each of three steps: state employment assessment, inventory of state resources, and strategic thinking about employment and work force needs. The final section presents conclusions that emerge from the analysis. It focuses on defensive and proactive state actions and their long-term implications as well as on evolving responsibilities in preparing a high quality work force. The states' roles in two major areas in which labor market adjustments spill beyond the boundaries of the firm are also discussed: the skill transfer process and displaced workers. (Contains 105 references.) (YLB)