Within a large-scale neuronal network model of macaque primary visual cortex, we examined how intrinsic dynamic fluctuations in synaptic currents modify the effect of strong recurrent excitation on orientation selectivity. Previously, we showed that, using a strong network inhibition countered by feedforward and recurrent excitation, the cortical model reproduced many observed properties of simple and complex cells. However, that network's complex cells were poorly selective for orientation, and increasing cortical self-excitation led to network instabilities and unrealistically high firing rates. Here, we show that a sparsity of connections in the network produces large, intrinsic fluctuations in the cortico-cortical conductances that can stabilize the network and that there is a critical level of fluctuations (controllable by sparsity) that allows strong cortical gain and the emergence of orientation-selective complex cells. The resultant sparse network also shows near contrast invariance in its selectivity and, in agreement with recent experiments, has extracellular tuning properties that are similar in pinwheel center and iso-orientation regions, whereas intracellular conductances show positional dependencies. Varying the strength of synaptic fluctuations by adjusting the sparsity of network connectivity, we identified a transition between the dynamics of bistability and without bistability. In a network with strong recurrent excitation, this transition is characterized by a near hysteretic behavior and a rapid rise of network firing rates as the synaptic drive or stimulus input is increased. We discuss the connection between this transition and orientation selectivity in our model of primary visual cortex.hypercolumns ͉ numerical simulation ͉ V1 ͉ circular variance O rientation selectivity and spatial summation (1) are two fundamental attributes of visual processing performed by the mammalian primary visual cortex (V1). V1 is the first cortical area along the visual pathway where neurons are strongly selective for stimulus orientation. Moreover, measurements of orientation selectivity for individual neurons, such as the tuning curve bandwidth (half-width at half maximum), circular variance (CV), ¶ and orientation selectivity index, often show near independence of stimulus contrast. V1 neurons are also classified as either ''simple'' or ''complex'' based on their spatial summation properties. Simple cells respond to visual stimulation in an approximately linear fashion, whereas complex cells respond more nonlinearly. For example, when driven by drifting sinusoidal gratings, a simple cell follows the temporal modulation of the drifting grating as the grating moves across the receptive field of the neuron, whereas complex cells show an elevated but unmodulated response. Quantitatively, simple and complex cellular responses are often differentiated by the modulation ratio F1͞F0 (at preferred stimulus orientation, the ratio of the first Fourier component and the mean) of the cycle-averaged firing rate (2): cells...