Overview

In a few years' time, e-commerce in tangible goods will be dwarfed by e-commerce in knowledge.

(David Brett, CEO and Founder, Knexa.com)

Online knowledge markets are a natural evolution of some of the Internet buying and selling methods discussed in the previous two chapters. Online communities facilitate the exchange of specialist knowledge. Business-to-business exchanges are trading hubs for specific industries or classes of product. Why not combine these ideas by creating marketplaces where buyers and sellers trade knowledge? Knowledge markets are attracting a lot of attention and investment as the benefits become more apparent. Most are still largely embryonic, but some valuable lessons can already be learnt from pioneering marketplaces and from their conventional e-commerce counterparts.

The chapter starts by describing the characteristics of a knowledge market and its potential benefits for buyers and sellers. A taxonomy of the different types of market is then introduced. Two main dimensions are used: the type of knowledge - from human capital to intellectual property; and the type of trading model - from auction to exchange. These categories serve as the basis for a more detailed analysis of the markets that already exist or are likely to emerge. The next part of the chapter addresses the question: what makes a good online knowledge market? Knowledge market creators and users face a number of challenges, caused in part by the unique characteristics of knowledge. These are examined with some suggestions as to how they might be overcome. The chapter concludes with an assessment...