WEDI evolved from a more limited concept, which was advanced by Mike Mathews, then President of the Wisconsin Economic Development Association (WEDA), and the Board of Directors of WEDA in 1997 in order to deliver an enhanced set of services to its members. WEDA is a trade association for economic development practitioners in Wisconsin.

As originally established by a large, diverse task force of WEDA members, the "Institute" functioned as a committee attached to the WEDA Board. Initially, volunteers produced the services described in the "Institute's" charter. Several years later, this interest and enthusiasm was insufficient to provide the growing menu of services and products requested by the membership. Jim Hough (WEDA Executive Director) and Roger Nacker (then WEDA President) came up with the idea of a nonprofit, educational corporation in order to secure funding to contract for the promised economic development services and research.

Subsequently, on August 24, 2000, with the unanimous approval of and with seed money provided by the WEDA Board, WEDI was incorporated as a nonprofit corporation. The initial WEDI Board of Directors was elected on October 12. The bylaws of the new corporation call for the Board to contain at least three former WEDA presidents, in addition to its other corporate and association executives. The IRS approved an application for 501(c) (3) tax status on April 24, 2001.

At this point in time, WEDI consists of one volunteer officer, the president, a volunteer board of directors and contract services for clerical and office assistance. However, the level of enthusiasm among WEDI supporters is amazing. The opportunity for success is tremendous. The timing is also fortuitous. Public policy introspection on economic development policy is in high gear. Study groups of all types are taking a look at economic development past, present and future policies. The Wisconsin Economic Development Institute, Inc. is gearing up to be a partner in these deliberations.