This study examines the paradoxical relationship between policy learning and capacity: governments need certain capacities to learn effectively, yet these same capacities often emerge from previous learning experiences. Through a comparative analysis of Hong Kong and Singapore's responses to SARS and COVID-19, we demonstrate how policy learning requires and manifests as enhanced analytical, operational, and political capacities. Our research reveals three key findings. First, learning outcomes materialize as enhanced capacities rather than just cognitive shifts and accumulated knowledge, as evidenced by both cities' institutional developments following SARS. Second, the effectiveness of learning processes depends heavily on existing capacities, particularly political capacity, which enables or constrains the deployment of analytical capacities. Third, capacity development is not linear—while both cities addressed many capacity gaps identified during SARS, COVID-19 exposed new vulnerabilities in areas like cross-border coordination and inclusive crisis management. These findings advance theoretical understanding of policy learning by showing how it manifests through changes in capacities. They also highlight the interdependence of different capacity types, particularly how political capacity enables or constrains the effectiveness of analytical and operational capabilities. For practitioners, our analysis emphasizes the importance of balanced capacity development and maintaining strong political trust alongside technical capabilities for effective crisis management.

Recent scholarly developments emphasise integrating insights from public policy discipline within the multilevel perspective (MLP) to understand sustainability transitions better. In this context, this article incorporates the concept of street-level policy entrepreneurs, specifically government-affiliated implementation agencies, within MLP to explain technology adoption and market creation when the technology is not cost-competent. The MLP framework is applied to analyse the case of the LED transition in India and highlight how a window of opportunity emerged in India, driven by global niche developments, favourable regime conditions and relevant institutional mechanisms. However, the high upfront cost of LEDs posed a significant challenge in utilising this window for niche-regime linking. This study demonstrates the critical role and activities of a state-affiliated implementation agency—Energy Efficiency Services Limited—in utilising this window of opportunity to accelerate the transition. It examines Energy Efficiency Services Limited's innovative implementation model that helped overcome the high upfront cost of LEDs, resulting in widespread technology adoption and reorientation of firm activities towards domestic manufacturing of LEDs in India. This study contributes to MLP scholarship by exploring the role of government in the later phases of the policy process and transition.