I honestly think its a symptom of having almost no "career mobility". If it's impossible to get promoted / find better jobs, then being skilled doesn't go as far as brown-nosing.

People will only apply themselves if they think it will help them get to a better place.

Not exactly - there is career mobility in IT, but for many IT is seen as the only place they can get it people who shouldn't be in IT go there.

There also seems to be an expectation that after about 30 you move into management. This means people experienced in IT are not socially valued (they can be paid well if they are great).