Reference to Knowledge Exchange (KE) in UK Higher Education Institutions (HEIs) has become common place, reflecting the continued changing role of universities within society. Arguably, KE draws together notions of HEIs as purveyors of knowledge, with students helping to create a tripartite relationship with HEIs and the wider community as well as a civic responsibility to contribute to the wider public good. Realising the potential benefits of this inter-relationship required a problematising of the meanings of both knowledge and the notion of an exchange, drawing on the work of Dewey and Bernstein. Our paper offers an analysis of the different epistemological positions governing understandings of knowledge and how these are influenced by the performativity and neoliberal responsibilisation of modern universities. More specifically, the epistemological position encouraged by the modern university leads to a tension between measurement and evaluation of KE on the one hand and pedagogical practice on the other. Taking into account these tensions, the paper offers an alternative approach to knowledge exchange with suggested principles to underpin a future relational pedagogy for KE.