The evolution of the role of economists in agricultural research institutes (ARIs) over the past two decades is described. A framework for determining relevant research activities for economists in ARIs is presented, with emphasis on the need to develop multidisciplinary research programs in close collaboration with commodity/disciplinary researchers from the agricultural sciences. Several guidelines for the successful institutionalization of economics as a discipline in ARIs are provided: 1) establish a separate economics program under strong leadership; 2) conduct joint interdisciplinary research projects among departments; 3) the principal orientation of the research system should be to solve farmers' problems; 4) mutual reliance among technical scientists and economists should be fostered; 5) economists should specialize in a particular commodity or farming system; 6) economists must maintain a strong farmer and field orientation; 7) research methods must be simple and results reported rapidly; 8) expatriate advisers can play an important role in the growth of economic research in ARIs. The paper concludes with two annexes, which are case studies of the experiences and achievements of recently created economics programs in ARIs of Pakistan and Ethiopia.35 pages