The Frankfurt School of philosophical thought was started from The Institut für Sozialforschung (Institute of Social Research). In the beginning, the School and the Institute were indistinguishable. The Institute was started as part of the University of Frankfurt in Germany. The Institute was established in 1923 by Felix Weil, and was able to function with considerable autonomy. Carl Grünberg was director of the Institute from 1923-1929. Grünberg was an avowed Marxist and made Marxism the theoretical basis of the Institute's program. The Institute did not have any official party affiliations, however. Grünberg stressed the importance of the historical context of meaning and results to research. Max Horkheimer assumed control of the Institute in 1930. Horkheimer emphasized the relationship between social philosophy and science. His main focus was interdisciplinary study. Like Grünberg, Horkheimer believed that Marx's theory should be the basis of the Institute's research.

In 1933, the Institute was forced to leave Nazi controlled Germany, and from 1933-1935 the Institute was located in Geneva, Switzerland. By 1935 it had been relocated to New York. In 1941, the Institute relocated to California. During this period, it faced many problems including a new audience for its work. Instead of writing for other German scholars, they were now writing for American social scientists. This coupled with the change of location and disarray caused by the Nazis created problems for the Institute members. By 1953 the Institute was able to move back to the University of Frankfurt in Germany. Theodore Adorno assumed a co-directorship with Horkheimer in 1955. Adorno in 1969 and Horkheimer died in 1973. The Institute of Social Research continued but what was known as the Frankfurt School did not.