Dalarna Research Institute – in Swedish Dalarnas forskningsråd (DFR) – was founded by the County Council of Dalarna in 1981. At that time, radical restructuring was taking place in the major industries that had historically dominated the labour market in this region. By establishing a permanent research organization, the County Council wished to improve the scientific prospects for the County – a broader research base would strengthen the region's competitive impact.

In 1981, the decision of a County Council to establish a research institute was an unusual initiative, as the predominant field of activities of the Swedish county councils has always been the provision and organization of health and medical care for the local populations. Moreover, it has long been regarded as the responsibility of the state to provide public funding for research.

The Institute has a twofold assignment. Firstly to carry out research and development work relevant and necessary for Dalarna's continuing development. Secondly to actively seek to raise the standards of competence in the region. These two tasks are combined in an endeavour to reach those persons in the County most likely to benefit from new knowledge and skills.

The Institute is a non-profitmaking, independent research organization. Its activities take place in a multidisciplinary setting basically within the social sciences. The research is applied in roughly the same way as in university departments or other research facilities. The greater part of research activities fall within three thematic categories: Sustainable development in the region, Social gerontology and Individual social welfare.

Many research projects are directly associated with Dalarna. Some of them have indeed come about as a result of personal initiatives in the County.

In other projects, geographical areas outside the County boundaries are beeing studied, but because they contribute to the DFR's fund of knowledge generally, they may well benefit the County in due course.The Institute also contributes to the development of other research-oriented organizations in Dalarna. This type of institutionally formative work is usually carried out in collaboration with the Dalarna University.

As a regionally based research organisation working broadly in the social sciences, DFR has served as a model for many of the R&D units that have evolved in Sweden recently.

An important precondition for the work of the Institute is its familiarity both with the academic world at large and with the life in the County in particular. Its intermediate position affords possibilities for the dissemination of knowledge in either directions: to represent and speak for Dalarna in scientific circles, and to provide interested actors in the County with scientific progress. Such a role also presupposes international relations.

The DFR receives its annual basic appropriation (2.5 mill. SEK in 2004) from the County Council. This sum defrays certain common expences, but also includes funds for allocation to research undertaken outside the purview of the Institute. In view of the broad scope of research in which the DFR is directly or indirectly engaged, it is not surprising that the Institute is fortunate in having numerous benefactors, in 2003 comprising about forty – County Council bodies, local authorities, state departments and state-owned industries, national research councils, the European Union, private organisations etc. The total of grants and revenues recieved by the DFR in 2003 amounted to 6.9 mill. SEK.

The Institute is, formally speaking, a foundation and, consequently, completely indepedent from the Dalarna University. However, the two institutions have entered into a collaborative agreement as a result of a series of joint projects. All such cooperation is in principle organized in the form of projects, whether they concern teaching, research collaboration, or the development of research organizations within the University.