This conference brought together directors of research grants and research-based contracts funded by the Division of Innovation and Development of the Office of Special Education and Rehabilitation Services (OSERS). The proceedings contain copies of three speeches given at the conference, along with transcripts of the question-and-answer sessions that followed. "The Social Context of Research Design: From Theory to Practice in the Care and Education of Retarded Individuals" by Edward Zigler offers a historical perspective on the issues of deinstitutionalization and mainstreaming, focusing on changes in views and practices toward retarded individuals over time and the role of science in the mental retardation field. "Naturalistic Inquiry: Politics and Implications for Special Education" by Yvonna Lincoln offers a naturalistic model for understanding reality, subject-object dualism, generalization, causality, the role of values, and the treatment of rigor, and outlines the implications of the new paradigm for special education researchers. "View from OSERS" by Martin Kaufman discusses the review system for research proposals at the Office of Special Education and Rehabilitative Services, the selection of reviewers, OSERS' difficulty in communicating its intentions, and current research priorities. In addition to the speeches, two papers from a panel discussion "What is Effectiveness?" moderated by Naomi Zigmond are included: "Some Thoughts on Effective Intervention for Handicapped Preschoolers" (Phillip Strain) and "Makers of Effectiveness at the Secondary Level in Special Education" (Eugene Edgar). (JDD)