Knowledge transfer and exchange (KTE) relates to both the translation and transfer of information, as well as the exchange of information, between researchers and decision-makers. Despite recent advances, KTE efforts may be compromised on two fronts: first, the existing reward structure for university-based researchers may not be compatible with applied research; and second, there appears to be a lack of research capacity in healthcare organizations. In this short paper, we contest the first of these points, suggesting that applied research can and should be published in high-index journals, and thus the tenure and promotions process does not need reform. Regarding the second point, we suggest that partnerships be formed across healthcare organizations, universities, government agencies and research funders to support the positioning of PhD-trained researchers directly in healthcare delivery organizations. In our view, it is here, once organizational boundaries are crossed, that significant progress will be made in completing the health policy and health research cycles.