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The study analyses the impact of international policy learning on domestic policy formulation in the context of Hungarian vocational education and training. It focuses on how domestic learning capacity impacts on international policy learning which, in turn, affects domestic policy formulation. Learning capacity captures individual and organizational capacities to acquire new knowledge and to apply it to subsequent actions. The analysis builds upon two case studies: (1) the creation of a labour market forecasting system to underpin the quantity steering of VET; and (2) the OECD policy review of Hungary. Since the two cases expose the same set of actors but in different settings, it allows for triangulating the findings. The empirical evidence gathered suggests that individual and organizational learning capacities play a crucial role in international policy learning as measured in policy formulation. Constraints on individual and organizational learning result in limited international policy learning; thus relevant and generally accessible policy options are neglected during the policy formulation process. Actor interests also have a considerable impact on international policy learning thus on policy formulation, however, these two set of factors do not compete with rather they mutually reinforce each other.

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