Spindlebob,
What you say is correct.
What is not said is such a system as you describe lends itself to fostering a "NIH" attitude meaning "Not Invented Here".....or as we used to describe it....."Father Knows Best".
I watched that play out in a Simulator several times and it was not pretty...but it sure was entertaining watching some Hat Sizes shrink.
Folks that had been set up to think. they could not learn from others but their own small circle quickly found out that was fraught with peril.