Know-How Trading
Encyclopedia
Know-how trading is a web-based research and design phenomenon related to open innovation
and crowdsourcing
. It denotes Fee-based knowledge market
s that treat knowledge and expertise as commodities that can be traded for financial gain (see Knowledge economy
). It therefore differs from other Information Market
s such as Google Answers
and Yahoo Answers in that solution providers are financially rewarded for their efforts. The challenges set therefore tend to be more focused, and solutions more detailed and lengthy.
Know-how trading sites differ from open innovation
communities in that the entry level for solutions is much lower. Rather than seeking large research projects, Know-how trading enables businessmen, researchers and individuals to save time by harnessing the skills and expertise of others to solve very specific, often quite difficult problems. Some individuals use know-how trading portals in an informal way to accumulate new knowledge about subjects which they are interested in.
Generally, any individual can sign up for a know-how trading portal for free and browse the selection of questions and challenges by reward and subject. Because reward is only transferred upon successful completion of the project, anyone can submit solutions without prior qualification.
Examples of Know-how trading portals include innocentive
, NineSigma
and Starmind. Innovation communities such as Experts-Exchange
and Mahalo Answers work on a similar business model but paying rewards in an artificial currency.
Open Innovation
Although the idea and discussion about some consequences date back at least to the 60s, open innovation is a term promoted by Henry Chesbrough, a professor and executive director at the Center for Open Innovation at the University of California, Berkeley, in his book Open Innovation: The new...
and crowdsourcing
Crowdsourcing
Crowdsourcing is the act of sourcing tasks traditionally performed by specific individuals to a group of people or community through an open call....
. It denotes Fee-based knowledge market
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...
s that treat knowledge and expertise as commodities that can be traded for financial gain (see Knowledge economy
Knowledge economy
The knowledge economy is a term that refers either to an economy of knowledge focused on the production and management of knowledge in the frame of economic constraints, or to a knowledge-based economy. In the second meaning, more frequently used, it refers to the use of knowledge technologies to...
). It therefore differs from other Information Market
Information market
Although information has been bought and sold since ancient times, the idea of an information marketplace is relatively recent. The nature of such markets is still evolving, which complicates development of sustainable business models...
s such as Google Answers
Google Answers
Google Answers was an online knowledge market offered by Google that allowed users to post bounties for well researched answers to their queries. Asker-accepted answers cost $2 to $200. Google retained 25% of the researcher's reward and a 50 cent fee per question. In addition to the researcher's...
and Yahoo Answers in that solution providers are financially rewarded for their efforts. The challenges set therefore tend to be more focused, and solutions more detailed and lengthy.
Know-how trading sites differ from open innovation
Open Innovation
Although the idea and discussion about some consequences date back at least to the 60s, open innovation is a term promoted by Henry Chesbrough, a professor and executive director at the Center for Open Innovation at the University of California, Berkeley, in his book Open Innovation: The new...
communities in that the entry level for solutions is much lower. Rather than seeking large research projects, Know-how trading enables businessmen, researchers and individuals to save time by harnessing the skills and expertise of others to solve very specific, often quite difficult problems. Some individuals use know-how trading portals in an informal way to accumulate new knowledge about subjects which they are interested in.
Generally, any individual can sign up for a know-how trading portal for free and browse the selection of questions and challenges by reward and subject. Because reward is only transferred upon successful completion of the project, anyone can submit solutions without prior qualification.
Examples of Know-how trading portals include innocentive
InnoCentive
InnoCentive is an "open innovation" company that takes research and development problems in a broad range of domains such as engineering, computer science, math, chemistry, life sciences, physical sciences and business and frames them as "challenge problems" for anyone to solve them...
, NineSigma
NineSigma
NineSigma is an open innovation services provider that helps client companies develop and maximize value from their innovation programs. In 2008, NineSigma ranked among the top 20 percent of companies on the Inc. 5000 list of fastest growing private companies in the United States...
and Starmind. Innovation communities such as Experts-Exchange
Experts-Exchange
Experts-Exchange.com is a membership-based online "ask an expert" site for computer and IT related questions that was founded in 1996....
and Mahalo Answers work on a similar business model but paying rewards in an artificial currency.
See also
- Competitive intelligenceCompetitive intelligenceA broad definition of competitive intelligence is the action of defining, gathering, analyzing, and distributing intelligence about products, customers, competitors and any aspect of the environment needed to support executives and managers in making strategic decisions for an organization.Key...
- CrowdsourcingCrowdsourcingCrowdsourcing is the act of sourcing tasks traditionally performed by specific individuals to a group of people or community through an open call....
- Digital economyDigital economyA digital economy is an economy based on electronic goods and services produced by an electronic business and traded through electronic commerce...
- Electronic businessElectronic businessElectronic business, commonly referred to as "eBusiness" or "e-business", or an internet business, may be defined as the application of information and communication technologies in support of all the activities of business...
- Information economyInformation economyInformation economy is a term that characterizes an economy with an increased emphasis on informational activities and information industry.The vagueness of the term has three major sources...
- Information marketInformation marketAlthough information has been bought and sold since ancient times, the idea of an information marketplace is relatively recent. The nature of such markets is still evolving, which complicates development of sustainable business models...
- Knowledge economyKnowledge economyThe knowledge economy is a term that refers either to an economy of knowledge focused on the production and management of knowledge in the frame of economic constraints, or to a knowledge-based economy. In the second meaning, more frequently used, it refers to the use of knowledge technologies to...
- Knowledge managementKnowledge managementKnowledge management comprises a range of strategies and practices used in an organization to identify, create, represent, distribute, and enable adoption of insights and experiences...
- Knowledge marketKnowledge marketA 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...
- Knowledge organizationKnowledge organizationThe term knowledge organization designates a field of study related to Library and Information Science . In this meaning, KO is about activities such as document description, indexing and classification performed in libraries, databases, archives etc...
- Private intelligence agency