The Institute of Economics of the Latvian Academy of Sciences, founded in 1946, initially operated at Smilšu Street 1 before relocating to the Academy’s Skyscraper, now Akademijas laukums 1, in 1958. The Institute was established to address pressing issues in economic and socio-economic development. Over the years, its staff expanded significantly, from a few dozen to over 150.

The principal research areas historically included political economy, industrial and agricultural development, demography, economic development programs, agrarian-industrial complexes, and transportation. These efforts supported the development and optimization of production forces in Latvia’s economy.

A significant shift occurred in 1999, when the Institute transitioned from a public institution to a private entity, merging with a similar privately established Institute under the same name. This reorganization allowed the Institute to expand its focus, adding modern topics such as regional development, economic growth, and the knowledge economy to its existing research portfolio. This evolution reflects the Institute’s ongoing commitment to addressing Latvia’s and Europe’s economic challenges.