This paper addresses the problem of building the capacity for continuous renewal and reform in the educational system. The authors contend that the paradigm of R&D previously used has been too narrow, and that it is based on restrictive assumptions about how to help schools solve problems. They feel that any revised concept of "the R&D system" should include (1) how and by whom problems are formulated, (2) a range of likely resources for solving them, and (3) the organizational life of operating systems which will affect the possibility of implanting a solution. The document first presents some history of the R&D system, from the Cooperative Research Act through recent construction of new facilities and the letting of multi-year contracts to regional educational laboratories. An overall framework is presented to make the case for stimulating the "R&D way of thinking" and refreshing the "user way of thinking" within the system. The authors opt for reinforcing the existing research, development, and information system to make its problemsolving less dependent on federal whim; and its solutions more possible, economical, valid, and communicated rapidly to those in need. They describe the needs of an make specific recommendations for operating agencies to strengthen their ability to set goals, identify achievement barriers, call on resources for solutions, and directionalize analysis results and creative thinking. No substantive agency for research and development or school improvement is presented, and the policy and program recommendations with respect to implementation apply only to the improved performance of K-12 schools. (Author/EA)