The report presents a rationale for School Based Curriculum Development (SBCD). SBCD is defined as any school initiated process which brings about a redistribution of power, responsibility, and control between central and local educational authorities. The result would be that the schools would acquire legal and administrative autonomy and professional authority enabling them to manage their own development. The document is comprised of four parts. Part I argues for basing educational innovation in the schools and draws on a number of sources ranging from theoretical models to classroom experiences. In Part II, case studies from various countries illustrate the complexity of the issue of school-based educational innovation. Countries examined are Italy, England, Wales, France, Switzerland, Austria, and Germany. Part III explores funding and administration and provides a cross-analysis of case studies described in Part II. Part IV identifies common factors and determines prerequisites that will ensure that a policy of school-based educational innovation is successfully implemented. (Author/KC)