Issues are identified that should be considered by state officials, mental health program directors, university officials, and research coordinators and managers in setting up and managing state-supported mental health research programs. The following categories of research are defined: basic, basic categorical, clinical, socio-epidemiological, evaluative, program evaluation, administrative or operations, and policy. The university is the appropriate setting for much of the basic research and a large part of basic categorical and clinical research, while the operating agencies and planning agencies are the setting for program research and evaluation, administrative research, and much of the socio-epidemiological research. It is proposed that state-supported mental health research should be substantially relevant to the state's mental health service needs and useful to the state's mental health program. Attention is also directed to: administrative arrangements with universities for state-supported mental health research; program evaluation and administrative research; coordinating and facilitating mental health research; and funding and administering research funds. Excerpts from the Annoted Code of Maryland and policy statements on the Maryland Psychiatric Research Center are appended. (SW)