An interesting essay by Paul Graham; thanks to Arnold Kling (EconLog) for the pointer. Here are some excerpts, selected by Kling:

"Wise" and "smart" are both ways of saying someone knows what to do. The difference is that "wise" means one has a high average outcome across all situations, and "smart" means one does spectacularly well in a few.

...As knowledge gets more specialized...intelligence and wisdom drift apart, [and] we may have to decide which we prefer. We may not be able to optimize for both simultaneously.

...as knowledge has grown more specialized, there are more and more types of work in which people have to make up new things, and in which performance is therefore unbounded. Intelligence has become increasingly important relative to wisdom because there is more room for spikes.

...Wisdom seems to come largely from curing childish qualities, and intelligence largely from cultivating them.

...cultivating intelligence seems to be a matter of identifying some bias in one's character—some tendency to be interested in certain types of things—and nurturing it. Instead of obliterating your idiosyncrasies in an effort to make yourself a neutral vessel for the truth, you select one and try to grow it from a seedling into a tree.

...perhaps one reason schools work badly is that they're trying to make intelligence using recipes for wisdom. Most recipes for wisdom have an element of subjection. At the very least, you're supposed to do what the teacher says. The more extreme recipes aim to break down your individuality the way basic training does. But that's not the route to intelligence. Whereas wisdom comes through humility, it may actually help, in cultivating intelligence, to have a mistakenly high opinion of your abilities.