Knowledge market

A knowledge market is a mechanism for distributing knowledge resources. There are two views on knowledge and how knowledge markets can function. One view uses a legal construct of intellectual property to make knowledge a typical scarce resource, so the traditional commodity market mechanism can be applied directly to distribute it. An alternative model is based on treating knowledge as a public good and hence encouraging free sharing of knowledge. This is often referred to as attention economy. Currently there is no consensus among researchers on relative merits of these two approaches.

A knowledge economy include the concept of exchanging knowledge-based products and services. However, as discussed by Stewart (1996) knowledge is very different from physical products. For example, it can be in more than one place at one time, selling it does not diminish the supply, buyers only purchase it once, and once sold, it cannot be recalled. Further, knowledge begets more knowledge in a never-ending cycle. Understanding of knowledge markets is beginning to emerge. As would be expected, they are very different in form from traditional markets.

Knowledge markets have been variously described by Stewart (1996) and Simard (2000) as a mechanism for enabling, supporting, and facilitating the mobilization, sharing, or exchange of information and knowledge among providers and users.

This transactional approach assumes that knowledge-based products or services are available for distribution, that someone wants to use them, and that the primary focus of the market is to connect the two.

This perspective is appropriate when the market has limited or no interest or control over either the production or use of the content being exchanged, as is the case for most traditional markets. A provider-user perspective is also appropriate for emerging social networking "ideagoras" (Tapscott and Williams, 2006), in which the primary function of the market is to match existing solutions with problems and problems with those who can find solutions.

From a production perspective, processes for creating wealth through the use of intellectual capital are explained by Nonaka (1991)and Leonard (1998). At the marketing end of the spectrum, a number of authors, including Bishop (1996), May (2000), and Tapscott et al. (2000) describe the architecture and processes necessary to succeed in a digital economy.

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