The manner in which the University of New Mexico developed from an undergraduate teaching institution in the direction of a graduate research university during 1967-1978 was studied, using an ethnohistorical research approach. A combination of qualitative research commonly associated with the participant-observation approach was employed. A large number of documents, such as memoranda, letters, and written reports, were analyzed to reconstruct the historical events at the college during the study period. Informal interviews were also conducted. The findings indicate that the university engaged in political action as a means through which it could protect its research interests, secure resources, and adapt to changes in its external research support environment. During 1968-1978, the college administration pursued three avenues of support for faculty research: retaining a portion of the overhead charged to the general budget, reducing teaching loads for selected faculty, and establishing the Office of the Vice-President for Research. To develop external support for faculty research and development during 1971-1978, the university increased its contacts with the directors of funding agencies, the state government, and New Mexico's congressional delegation. (SW)