This report proposes policies and principles to guide DFID's research work over the long term. It also identifies the need for better communication to enhance the pro-poor impact of DFID's research programme. The paper argues that research has a crucial role to play in helping to develop evidence-based, innovative approaches to international development and acknowledges the high quality of much current practice. It also acknowledges that research is only one element in a system; research needs to be located within the context of wider knowledge or innovation systems. Networks and trust-relationships between various players are central to knowledge systems. These relationships form the key communication channels. The report is also suggesting that DfID improve its understanding of knowledge systems, in which DfID funded research takes place