This project developed as an effort to investigate how the school could become more actively involved in educational innovation. This final report highlights work conducted over the period 1972-75 in the nineteen Organization for Economic Cooperation and Innovation member countries that took part in the project. The first two chapters summarize the first phase of activity which defined the concept of the project. Chapters three through seven are syntheses by the reporters for the five subactivities selected for indepth analysis in the second phase. These are based on the findings of a number of national country studies prepared for the working conferences held on each subject area and original papers prepared by them. The activities were: (1) incentive systems for teachers; (2) creativity and the internal organization of the school; (3) the role of the inspectorate; (4) professional support and the creativity of the school; and (5) the allocation of financial resources and public accountability. The final chapter draws together the material presented in these papers and formulates a number of conclusions about the environment conducive to creative problem-solving within schools. (JD)