My company does it great, we have a full engineering-not-managing track.
I'm a principal engineer, and because I have "engineer" in my title, I'm responsible for engineering. Though, that doesn't mean I'm an IC. I probably only commit 100 lines of new code a year - just the stuff that's clearly my expertise (and we use that as a learning experience by having the juniors responsible for reviewing that code).
I do need to lead the engineering effort of the team. I'm not their manager, they don't need to do what I said just because I said so. So, I need to be able to communicate well which means both being technically correct and persuasive so that the engineers who actually do write the code, right the correct code.
It's almost all soft skills needed to shape the direction.