Purpose: To provide information and insight into the potential of reforms in full-time vocational education and training (VET) (practice firms in vocational colleges) in contrast with apprenticeships against the background of training market frictions in Germany. Design/methodology/approach: Structural information on the German VET system; empirical study (2006) within a research project to illustrate the didactical and social benefits of practice firms. Findings: Underlines that vocational colleges and practice firms within them are part of a "preparatory" system which predominantly serves further education needs and the follow-up intention to undertake an apprenticeship; confirms preceding research which put them in line with the "typical" full-time VET system. Research implications/limitations: Limitations are due to the focus on one type of full-time VET and the specific conditions in the federal state of Baden-Wurttemberg. Practical implications: Provides useful information to understand the nature of VET in a given country; insight into the limitations of full-time VET can help teachers to rethink co-operation with companies in general. Originality/value: Useful contribution to rethinking VET policy and to understanding limitations in the wake of an implementation of new forms of vocational learning against the background of culturally-rooted traditions. (Contains 1 table, 2 figures and 4 notes.)