Abstract. Parameterized systems (e.g., network protocols) are compositions of a number of isomorphic, finite-state processes. While correctness is decidable for any fixed-size instance, correctness over all instances is undecidable in general. Typical proof methods, such as those based on process invariants or cutoffs, rely on summarizing the behavior of a parameterized system by a finite-state process. While these methods have been applied successfully to particular protocols, it is unknown whether such summarization is always possible. In this paper, it is shown that-after essential modifications-the cutoff method (which has the most stringent requirements) is complete for safety properties. The proof also shows that cutoff proofs are equivalent to determining inductive invariants. The paper studies this question next, presenting a new algorithm to construct universally quantified inductive invariants. The algorithm computes the strongest invariant of a given shape, and is therefore complete. The key to this result is a previously unnoticed connection between inductiveness, small model theorems, and compositional analysis, which is interesting in its own right.