The institute has two important functions: first, to promote greater diversity in Swedish social science research, challenge conventional wisdom, and offer alternative perspectives on the economy; and, second, to build bridges between academia and industry.
In 1939 the institute was called IUI, the Industrial Institute for Economic and Social Research. In 2005 Magnus Henrekson became the CEO of the institute, and in 2006 the Swedish name was changed to IFN, Institutet för Näringslivsforskning, to reflect its activities better. After that, the institute was rebranded in both form and content.