Under the sponsorship of the Carnegie Corporation and the Ford Foundation, a study was instituted to examine research and development in the educational materials industry. Using the open-ended interview method, data was collected from executives of major book publishers and their subsidiaries, and producers of materials other than books. Interviews were designed to uncover information concerning the respondent's perceptions of what constitutes research and development for the industry, the actual practices and procedures which constitute the research and development process for his company, and his perception of the company's role in the educational process. A provocative work paper was also sent to some carefully selected publishers for their comments and corrections. Sixteen annotated replies were obtained. This data was analyzed to reveal the dimensions of the research and development process in theory and practice. No accurate definition of research and development was arrived at that could be applied universally to the educational materials industry. Two dimensions felt to be useful when examining research and development were the locus of control and the degree of technological complexity. A bibliography is appended along with a list of participating companies. (JY)