A critical assessment of mainstream of higher education reveals that universities spent most energy on delivery of knowledge. Application of knowledge is dominated by ‘near transfer’, which means that students learn to give practical examples of theoretical concepts. ‘Far transfer’ originates from the analysis and solving of real problems, without prior exposure to cues regarding relevant knowledge. It occurs in Schools that deploy problem- or project-based learning. Exchange of codified and practical knowledge is absent in general. It might take place during internships, but projects outside the university are better and moreover, they offer opportunity for integration with other learning processes.