This paper examines collaborative action research in order to clarify the arguments and research base that either support or oppose the process. Proponents who advocate the institutionalization of collaborative action research point to its theoretical rationale, a growing research base that documents the value and outcomes of the process, and supporting research on educational change. Opponents cite lack of proof, possible negative effects of institutionalization, and the lack of necessary conditions for successful implementation as reasons against institutionalization. Suggestions for developing collaborative action research in schools include: (1) explicitly operationalize the process; (2) ensure that participants have the necessary attitudes, knowledge, skills, and access to resources; (3) provide teachers with incentives and released time, or restructure the school day; and (4) conduct additional research on the process and its effects. A conclusion is that collaborative action research is a teacher-friendly process that directly addresses educational practice over time. It directly, actively, and collaboratively involves practitioners in creating and studying change. (LMI)