Three research questions are addressed in this paper: (1) What does school improvement mean in relation to the context of a research project? (2) Given particular developments in European society and the nature of primary research data, what should schools be like in the year 2001? (3) What steps are being taken in research and development to answer these questions? Because such fundamental questions have no easy answers, this discussion is limited to reflections based on educational research and development experiences in various Western European countries. Section 2 of the report analyzes characteristics of large-scale innovation projects in education. The context of school improvement is discussed, and the meaning of school improvement is interpreted. To provide an illustration to the second research question, the report's third section explores specific tasks facing schools in 2001 by referring to Belgium's comprehensive Renewed Primary School project. The processes involved in study of the large-scale innovation project are deliberated. The final section focuses on research and development questions that should be considered in the next decade. Methodological approaches to emerging complex research issues include design of long-term follow-up studies and use of multiple data sources. Twenty references conclude the report. (CJH)