The founding of the institute in 1967 resulted from the insight that a supra-regional institute equipped with powerful telescopes was necessary in order to conduct internationally competitive astronomical research. Hans Elsässer, an astronomer, became the founding director in 1968. In February 1969, a first group of 5 employees started work in the buildings of the neighbouring Königstuhl State Observatory. The institute, which was completed in 1975, was initially dedicated to the preparation and evaluation of astronomical observations and the development of new measurement methods.