How should universities manage their research function? Today, research-based knowledge is viewed widely as fundamental to economic advancement. As a result, universities everywhere are facing pressure to rethink their research activities. A general model of the research process is presented here. Linkages are drawn between that process, other university activities, and factors that shape the broader operating context of the university. The model provides a focus for exploring how universities might respond to contemporary performance pressures. Key policy options are identified for those seeking to manage university research and commercialization activities more effectively. Dilemmas that arise in choosing alternative policy approaches are highlighted. (Contains 1 figure and 1 table.)