The Institute of Economics of the Latvian Academy of Sciences, founded in 1946, initially operated at Smilšu Street 1, until in 1958 it moved to the Academy high-rise building – the present-day Academy Square 1. The Institute was established to address current issues of economic and socio-economic development. Over the years, its staff expanded significantly – from a few dozen to more than 150 employees.

Historically, the main research directions included political economy, industrial and agricultural development, demography, economic development programmes, agro-industrial complexes, and transport. These efforts contributed to the development and optimisation of productive forces in Latvia’s national economy.

Significant changes took place in 1999, when the Institute transformed from a state institution into a private structure through a merger with a privately founded institute of similar name. This reorganisation allowed the Institute to expand its field of activity, supplementing its existing research portfolio with contemporary topics such as regional development, economic growth, and the knowledge economy. This evolution demonstrates the Institute’s continued commitment to addressing the economic challenges of Latvia and Europe.