Social capital is recognised as a useful framework for understanding educational contexts (Coleman, 1990, Fine and Green, 2000) and it focus on networks, norms, trust and forms of reciprocity make it particularly relevant to issues of inclusion and civic engagement and the ways in which relationships within schools contribute to, or restrict, these processes. Ideas of social capital have become very current across European nation states and are embedded in the European commission's policy statements and programmes that are designed to meet some of the excusionary tendencies of marketised policies. By distinguishing different types of social capital - bonding, bridging and linking - it is possible to analyse the nature and extent of inclusion and engagement and to identify the capacity for change through an increase in social capitals. This paper considers the existing knowledge base of social capital, its value in understanding school contexts and its capacity for informing change. It is based on a synthesis of three major reviews of policy, research and theory on social capital, undertaken by groups of researchers, policymakers and school professionals within the Schools and Social Capital Network of the Applied Educational Research Scheme (AERS). This major initiative, funded jointly by the Scottish Executive Education Department and the Scottish Higher Education Funding Council and involving the Universities of Edinburgh, Stirling and Strathclyde in Scotland, is aimed at conducting research on issues relating to what have been identified as national priorities (achievement and attainment, framework for learning, inclusion and equality, values and citizenship and learning for life) and undertaking research capacity building. The Schools and Social Capital Network is one of three thematic networks established through the scheme. The review activities were based on a preliminary analysis of indicators of social capital and (Catts and Ozga, 2004) and were undertaken over a six month period. The participants, representing key stakeholder perspectives, were involved in the identification of texts for review, reading, discussing, analysing and reporting. The participants' own educational contexts provided an important basis for analysing the data and for considering its relevance. The activities were envisaged as an exercise in building social capital, as a framework for collaboration and co-authoring and as a more effective means of knowledge transfer (Ozga, 2005). Thus, the paper, as well as reporting the findings of the three reviews, will also consider the process of engagement among the key stakeholders. Although the research reported on here is located within one national context (Scotland) the research network draws in contributions from across Europe and beyond. and includes interrogation of some of the key social capital concepts and applications developed in supra-national organisations such as OECD.ReferencesCatts, R and Ozga, J (2004) Social Capital Performance Indicators. AERS Working Paper 1.Coleman, J (1990) Equality and achievement in education. Boulder, CO: Westview Press. Fine, B and Green, F (2000) Economics, Social Capital and the Colonisation of the Social Sciences", in Baron, S. et al (eds) Social Capital: Critical Perspectives, Oxford: Oxford University Press, pp. 78-93.Ozga, J (2005) In the Public Interest? Research, Knowledge Transfer & Education Policy. Inaugural Lecture, 25 January, 2005, University of Edinburgh.