Businesses as Storehouses of Knowledge
By Arnold Kling
For any type of business that you can imagine, the overwhelming majority of the information necessary to run the business consists of informal knowledge that has accumulated over years or decades, and that will never be taught in schools.
William Lewis, in The Power of Productivity, points out that the same uneducated construction workers who have low productivity in Latin America have high productivity in the United States. Business know-how accounts for much of the difference.