Although there are several studies of innovation in the information and communication (ICT) industry, there still is a scarcity of studies on organisationlevel technological capability in the ICTs sector in the context of late-industrialisation. This article examines types and levels of technological capability in a sample of 18 ICTs institutes in Brazil that are studied here as knowledge-intensive business services (KIBS). The article draws on first-hand empirical evidence gathered on the basis of extensive fieldwork. The study found a variety of capabilities for specific technological functions, not only across the sampled organisations, but also within them. It also found a diversity of intra-organization learning processes and inter-organisational links with other innovation system organisations. These were examined here as key sources of technological capabilities. By applying metrics that capture nuances of types and levels of technological capabilities and their key sources, this study offers a realistic perspective on innovation in a relevant