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This report examines the educational research and development (R&D) systems in England and New Zealand. An OECD review team has evaluated the effectiveness of these two systems in developing and applying useable knowledge to improve the quality of educational practice and policy. The review approach has been to analyse the national educational R&D system as a knowledge management system. In such a system, educational R&D is responsible for producing and disseminating knowledge that informs a long-term understanding of the fundamental processes of education and, in the short-term, supports continuous improvement of the education system. The report demonstrates that OECD countries are increasingly using innovative research initiatives to improve the knowledge base in education for practitioners and policy makers. However, major knowledge and cultural changes in the practice of teachers, researchers and policy makers are still needed to create a system-wide continuous improvement of the knowledge base for the education system. Chapter one highlights some of the main challenges and issues in educational R&D faced by OECD countries. Chapters two to five contain the OECD reviews of the two educational R&D systems and the background reports prepared by the Department for Education and Skills, England and the Ministry of Education, New Zealand.