The Institute was established in 1937 as a unit of the Department of Scientific and Industrial Research, located in Dunedin. It was known originally as the New Zealand Wool Manufacturers' Research Association, but on incorporation in 1945 it assumed the title of the New Zealand Woollen Mills Research Association, and in 1957 the name was again changed to the New Zealand Wool Industries Research Institute, consequent upon the admission of commission wool scourers to membership. The Institute consists of ordinary members in groups (woollen mills group, woolscouring group), the New Zealand Wool Board, and the two members of the executive appointed by the Minister in Charge of Scientific and Industrial Research, together with certain ancillary members and associate members. The work of the Institute is controlled by an executive consisting of four members elected by the woollen mills group, two members elected by the woolscourers' group, two members appointed by the New Zealand Wool Board, two members appointed by the Minister in Charge of Scientific and Industrial Research, the Director-General, Department of Scientific and Industrial Research (but without vote), and one member appointed by the Council of the University of Otago. Finance from industry is contributed by the woollen mill members, the woolscourer members, and the Wool Board.