Frostpunk 2 takes city building to a new level, requiring you to make the right decisions and guide the city through a post-apocalyptic world. Building is a core aspect of the game and one that you will be required to build in Chapter 1 is the Research Institute. However, you will find that the game may not allow you to build one. This is because it requires you to perform a single action.
How to build a research institute in Frostpunk 2
If you have not yet expanded your neighborhood, go to the selection and click on the icon with the 4 arrows pointing outwards.
Then select the areas you want to expand to and click the check mark to confirm.
And that's all you need to do to build a research institute in Frostpunk 2. Here's a visual guide to help you out: