The state of research and development (R&D) in technical and further education (TAFE) in Australia was reviewed. Special attention was paid to the following: current R&D expenditure and output; shortcomings in Australia's current research; organization and funding of research in TAFE; and dissemination of R&D. It was concluded that a stronger research base would benefit TAFE by providing a better information base, critical analysis and accountability, improved cost-effectiveness, varied perspectives, better understanding of education and training processes, and a higher profile for vocational education and training (VET). Research on VET was receiving only about half the funding received for research in other categories of education, and the existing research in VET was fragmented, not focused on general issues, and not being fully used. Seventeen principles related to priorities and funding, R&D organization, and R&D utilization were proposed as underlying principles of a new national research strategy designed to increase the likelihood that research in VET will be focused and easily implemented. It was recommended that the highest priority be given to research projects examining the economic benefits of VET, the assumptions underlying competency-based training, the nature of workplace learning, management in TAFE systems, community perceptions of VET, and approaches to the dissemination and use of research in VET. (Sixteen tables/figures are included. The bibliography contains 152 references.) (MN)