This article addresses several issues raised by a very particular patt
ern of knowledge generation, called ''discovery in the context of appl
ication.'' The case of a hypersonic aircraft research program illustra
tes that the organizational design of such programs is a very complex
matter. The problem cannot be dealt with in the conventional way by ha
ving different organizational forms for different phases of the proces
s-say, one for the research phase another for the development phase, a
further for the testing phase, and so on-because of its integral natu
re. Two modes of organization are considered but neither, on its own,
seems to be quire adequate to govern the management of the whole proce
ss. The need is to deal with the problem of finding a balance between
two (distinct) organizational imperatives: the need to manage the inte
raction between a large number of projects that are carried out in dif
ferent locations, and the need to bring a wide range of problem solver
s into a single entity. The former mode is necessary to facilitate exp
eriments in different directions and to decrease the risk of missing a
possible successful design, the latter to develop the infratechnologi
es and instrumentalities that will underpin the research agenda. (C) 1
996 Elsevier Science Inc.