"[2] In the December 1999 publication, "Knowledge Evolution: Tools of the Trade",[3] clients were advised to utilize Expert Networks to "Understand who the experts are throughout the organization (including the extended organization), and more appropriately employ that expertise within a broader range of business contexts for better decision making."
The client pays for a predefined number of "credits" at the start of the contract year, which are run down as expert consultations are made.
In recent years, as sell-side research has become increasingly "scarce and less influential," institutional investors have turned to expert networks to gain "new insights and a competitive edge" within a compliant framework.
In 2020, expert network companies generated an estimated $1.5 billion in revenues, according to a report by Integrity Research.
[14] Several expert networks have made headlines in relation to improper information disclosure and insider trading allegations.
[citation needed] The Fall 2009 indictment of individuals associated with hedge fund FrontPoint illustrated the compliance challenges of speaking with sources directly.
The individuals had initiated access with a Dr. Yves Benhamou,[19] board member of an ongoing clinical trial.
The circumstances illustrate one of the core challenges of primary research in general and a central plank of the expert network platform.