The funded research program of the Scottish Education Department (SED) plays a dominant part in educational research in Scotland. This program includes developmental projects, but mainstream curriculum development has been guided by national committees influenced by Her Majesty's Inspectorate. Negotiations for research within SED's program are carried out by the Research and Intelligence Unit, which mediates between the research community and SED. Projects receiving funding are invariably those designed to have some practical payoff. Agencies performing research with SED support include universities but also include specialized research agencies and practicing teachers engaged in action research. During the 1970's the general funding increased steadily under both Labour and Conservative governments. Sharp growth occurred from 1979 to 1981 under the Conservatives, but more recently the budget has had smaller increases. Research has had a close relationship with practice and some influence on policy decisions, particularly in the programs linked to government developments. The close links with practice have contributed to the rise of action research methods and have facilitated dissemination of research ideas and findings in Scotland, but they have done little to communicate Scottish work to other parts of the world. (PGD)