During the last decades several scholars have strived to investigate how combinations of new and prior knowledge affect the innovative capability of organizations. One way these issues can be manifested is when organizations involved in knowledge-intensive practical problem solving send their employees to formal, theoretical training. Often, the training is not experienced as relevant to practical on-the-job problem solving or the employees have difficulty making use of it once they return to their daily work tasks. This thesis strives to understand why the absorption of formal training could be a challenge for knowledge intensive organizations involved in solving practical problems for clients. The study argues that time pressure, lack of reflection, sharing of different knowledge sets and lack of sufficient practice could inhibit the process of bridging theoretical training and practical problem solving in such organizations. As a way to cope with this, it suggests that the theories from training should be combined, shared and practiced on the basis of resembling, prior knowledge sets. The context of this empirical study is an engineering company specialized to solve practical problems for clients. By exploring these issues among employees and line managers, this thesis strives to illuminate the relationship between theoretical and practical forms of knowledge.