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The NIIP was founded in 1921 by Dr C S Myers, Director of the Cambridge Psychological Laboratory. Dr Myers was backed by a group of businessmen led by H J Welch, who gave their support and encouragement. Myers became the first Director of the Institute. The NIIP was a non-profit making scientific organisation for the study of industry and commerce. It aimed to promote the application of psychology and physiology within these fields. The Institute conducted research into problems of general interest to the industrial and commercial sector, and published the results. It also undertook research into the problems of particular organisations and suggested solutions. The NIIP began to expand rapidly in the mid 1960s, following support from the Ministry of Technology. The withdrawal of this funding from the end of the decade, however, contributed to the acute problems facing the organisation by the middle of the 1970s. The NIIP suspended activity in 1973, but later, aided by the North East London Polytechnic, continued to work on a smaller scale. It finally closed in 1976.