Although knowledge markets inherit many of the characteristics of B2B exchanges, the motivation for creating and using them is different. In many B2B exchanges a group of dominant players in a market segment create an Internet markteplace to gain economies of scale in purchasing and to optimize their supply chains. Knowledge, however, is much more differentiated that a typical supply, and the market for knowledge is much more fragmented. Therefore, most knowledge markets are more balanced in terms of the relative power of buyers and sellers. Social Capital Networks - e.g.
Suppliers can reach a wider range of potential buyers than normal.
For inventions, it is estimated that only 3 per cent of patents are used by the firms that create them. Patent exchanges give the creators access to buyers who they would not normally consider as potential customers. Buyers, likewise, can see a wider range of offers. A good product and service classification coupled with good descriptors for suppliers capabilities means that bids and offers can be more closely matched. Open markets allow buyers and sellers to see what is on offer, and what the prevailing market price is.