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Addresses the question: will investment in HRD [human resource development] through company-based programmes of lifelong learning pay dividends to companies in terms of knowledge transfer from courses and more positive psychological contracts? Develops a model of the relationship between HRD investment, the content of psychological contracts and key consequences such as satisfaction, continuance commitment and knowledge transfer. This model is tested empirically using data from a survey of a cohort of participants in a major Scottish electronics company. The results show that the programme paid off in terms of more positive psychological contracts and knowledge transfer. However, contrary to other research, the nature of the transfer climate (e.g. manager support, career and salary advancement, etc.) was not seen to be important in affecting knowledge transfer. This latter finding has important implications for HR policies in knowledge creating companies.