An analysis of the gap between educational productivity and technological advancement concludes that American education's dismal productivity level is partly due to the lack of investment in research and development. Successful school restructuring must include the following innovations: site-based management; public school choice; competitive markets; realistic accounting; meaningful incentive programs; and valid evaluation processes. An initiative to close the gap is proposed, in which U.S. institutions and training facilities allocate at least one percent of their budgets for a research and development fund to be managed by a new National Institution for Learning Technology. (LMI)