This report identifies principles that should guide the actions of public officials, educators, and others concerned with using technology to improve the performance in the nation's schools and school systems. Prepared as a result of participation by RAND's Critical Technologies Institute (CTI) in federal efforts to plan a research agenda and develop a national educational technology plan, it is based upon a series of workshops, interviews, and literature reviews. The report considers three major areas: (1) current use of educational technology in elementary and secondary education, including effectiveness, equity, and costs; (2) elements of a national strategy to expand the use of technology in education; and (3) the federal role in fostering effective use of educational technology. Chapter 1 defines educational technology, discusses why technology is an important component of public policy, and provides an outline of the report. In chapter 2, the current use of technology in education is reviewed. A sample of technology-rich schools are compared with the broader national picture. Chapter 3 examines the costs of technology-rich schools. Chapter 4 considers three national, systemic challenges to the widespread adoption and effective implementation of educational technology: financing the costs of acquiring and developing technology in schools; providing teachers with the skills needed for effective technology-rich schools; and ensuring that the needed software is available. Chapter 5 summarizes findings and suggests strategic principles that should govern the nation's efforts to bring technology to schools. It concludes with recommended roles that the federal government should play in a national strategy for effective educational technology use. An appendix lists participants in the CTI workshops. Eighteen figures and tables present information throughout the report. A bibliography contains 39 references. (AEF)