Absorptive capacity and appropriability depth are important for service firms in Taiwan to develop new products. By looking at how well a company can learn from outside sources and protect its ideas, researchers found that both factors are crucial for success. They studied 311 service firms and discovered that a firm's ability to absorb new knowledge and protect its ideas significantly impacts its new product development. They also found that different types of absorptive capacity and appropriability depth can either help or hinder a firm's new product development. In conclusion, having a good balance of absorbing new knowledge and protecting ideas is key for service firms in Taiwan to create successful new products.