An interdisciplinary research team investigated the field of educational research/development and innovation (R/D&I) in order to (1) develop an understanding of the nature, structure, and functioning of R&D as they interact with their environments; (2) develop an understanding of educational R&D and of the educational context in which it exists and with which it interacts; (3) develop an understanding of the applicability to educational R&D of models, technology, and experience found in other R&D sectors; and (4) develop an understanding of the basis for comparative analysis of R&D systems across sectors. Basic to the report is the concept of "contextual analysis," in which innovation is recognized as a total process of knowledge production and utilization, the aspects of which interact and cannot be adequately understood apart from this interaction. The report is divided into four sections: (1) the framework for a contextual analytical approach to R/D&I; (2) illustrative contextual analysis of two R/D&I sectors; (3) illustrative contextual analysis of selected feature issues; and (4) review of the report, and preview of the application of contextual analysis to more specific situations. (MB)