Abstract: Acrylate and methacrylate resins containing hydroxyl groups and modified by .epsilon.-caprolactone are produced by producing an adduct of a hydroxyalkylacrylate or methacrylate and .epsilon.-caprolactone in a first step and then in a second step radically copolymerizing this product with further acrylic acid or methacrylic acid esters and optionally vinyl aromatics in a suitable varnish solvent. The thus obtained copolymerizate solutions after addition of a polyvalent isocyanate are used to produce coatings on substrates and give a baked on lacquer coating with outstanding adhesion to the base.