Digital circuits such as the flip-flop use feedback to achieve multistability and nonlinearity to restore signals to logical levels, for example 0 and 1. Analogue feedback circuits are generally designed to operate linearly, so that signals are over a range, and the response is unique. By contrast, the response of cortical circuits to sensory stimulation can be both multistable and graded. We propose that the neocortex combines digital selection of an active set of neurons with analogue response by dynamically varying the positive feedback inherent in its recurrent connections. Strong positive feedback causes differential instabilities that drive the selection of a set of active neurons under the constraints embedded in the synaptic weights. Once selected, the active neurons generate weaker, stable feedback that provides analogue amplification of the input. Here we present our model of cortical processing as an electronic circuit that emulates this hybrid operation, and so is able to perform computations that are similar to stimulus selection, gain modulation and spatiotemporal pattern generation in the neocortex.