Idea: markets for ideas?

I've been thinking recently about what-I-call "idea markets". Many organizations and systems tend to think of themselves as that: organizations, hierarchies and systems. But what happens if we think of these organizations and systems differently, as a marketplace where the products are ideas? Here's what I think might happen:

1. The best ideas will come regardless of hierarchy: command-and-control might not work as well. There is a certain democratization that happens from a marketplace approach (assuming that your organizational culture isn't hierarchical), as anyone could have an idea that could work. Does the best idea necessarily come from your boss? No, as the marketplace might already have a solution. Often the best ideas come from one's clients or co-workers. 
2. Crowdsourcing will be more commonplace. Crowdsourcing tends to work best when there is enough depth to demand. Hence, the most commonplace tasks/requirements will likely have the biggest drivers for crowdsourcing (i.e. getting inputs directly from the market) and also for collaborative efforts (especially if the idea-market in question is within the same organization).
3. Career progressions might become different due to different impact of different ideas. For an idea market to work, it must have the main characteristics of a market: strong economic incentives for "effective products", similarly disincentives for "faulty products". However, this type of market incentive is quite different from the traditional pay and incentives of a traditional organization and hierarchy; indeed, it is much more like the incentives for an entrepreneur, and better fits an entrepreneurial mindset than a traditional hierarchy-man/woman. The flipside to this is that an idea market is likely to drive greater income inequality between the top and bottom earners in an organization. 

I'm sure what I'm writing about isn't new and has already been thought of or invented by someone else. Will be happy to hear more comments/feedback from people about it.