Founded in 1971 by Prof. Joel Elkes, with the support of Charles E. Smith, NIPI has a national, rather than institutional focus quite unique among philanthropic initiatives that support biomedical research in Israel. We have grantees at all Israeli universities, research institutes and major hospitals and support basic and clinical research in the field of brain and behavioral sciences with direct relevance to psychobiology. From inception our aims have been to:  identify outstanding psychobiology researchers in Israel; foster communication among them; and support cooperative and individual projects in selected areas of the field.

These aims were implemented and expanded in the years to follow under the directorships of Prof. Amiram Carmon, Prof. Moshe Abeles, Prof. Bernard Lerer, Prof. Shaul Hochstein, and now Prof. Ronen Segman. New initiatives were introduced including funding opportunities for post-doctoral fellowships and senior research projects, and grants aimed at promoting scientific excellence and preventing the flight of Israeli scientists to foreign institutions.

In 1988, the Charles E. Smith Family Laboratory for Collaborative Research in Psychobiology was established – later renamed to also honor NIPI founding chairman, Prof. Joel Elkes, followed by the Charles E. Smith Lecture Series in 1994, and the Drug Abuse Research Grant in Memory of Steven Smith. In 1998, the Harry Stern National Center for Research and Treatment of Alzheimer's Disease and Related Disorders was created under the aegis of NIPI. 

Matching funding has been found in recent years, doubling the support for scientists who receive NIPI grants.  NIPI continues to support young as well as established scientists, ensuring that at every stage of a researcher’s career there are strong options to do cutting-edge work in Israel to attract and keep the brightest and most talented minds in the country.