This article explores a key point of tension in contemporary discussions of community-university research engagement. Two perspectives are discussed. The first suggests that changes in the nature and structure of research have helped create democratic research spaces and opportunities within the university for communities. In this emerging (global) knowledge democracy movement, community-based researchers are increasingly seeking to connect lessons learned in local settings to the global context. The second perspective situates such developments in the context of the knowledge economy of higher education and suggests that community engagement is also developing in a manner that supports the advance of knowledge capitalism. The decisive tension is that universities around the world are being encouraged by governments to assume greater responsibility for economic development and to translate knowledge into products and services for the market--whilst at the same time being tasked to work with communities in alleviating the social and economic excesses of the market.