Int. J. Innov. Mgt. 1999.03:427-458. Downloaded from www.worldscientific.com by UNIVERSITY OF TORONTO on 03/10/15. For personal use only. 428 V. Wong et al.This paper presents the results of a study of intra-firm learning in Taiwanese information technology firms. Focusing on 100 effective and less effective projects within 49 companies, the research finds that firms with a high level of absorptive capacity are able to transfer technology more effectively. Effective projects display lower barriers to the internal diffusion of the acquired technology, thereby encouraging intra-firm learning. Furthermore, learning, both at an individual and group level, is found to have a significant influence on the outcome of a technology transfer project. In effective projects, particular emphasis is placed on an informal, hands-on approach to training and learning.