This report reviews the education research and development funding policies of the National Institute of Education (NIE) and attempts to evaluate the impact of those policies on the nation's education research and development system, particularly the regional education laboratories and research and development centers established by the Federal government in the 1960s. The report is based on the work of ten consultants and represents a synthesis of the different consultants' views. An additional paper prepared by one of the consultants is included as an appendix. Individual chapters of the report discuss the task and procedures of the consultants, the role of research and development in improving education, present resources for education research and development, the context for policy-making at NIE, policy directions at NIE, and the conclusions and recommendations of the consultants. (JG)