The Institute of Economics of Latvian Academy of Sciences was established in 1946. Initially, until May 1958, the Institute was located in Smilsu Str. 1, but later moved to Skyscraper of Latvian Academy of Sciences, then Turgeneva Str. 19, in 1996 named Akademijas laukums 1.
The Institute was established with the aim to study topical economic development problems and other social economic problems.
During the gradual creation of the Institute, the number of its staff increased from several tens to more than one and a half of hundreds. The principal research areas were: political economy, complex programmes of economic development, industrial economy, agricultural economy, demography, development and location of production forces in economy, development problems of industry and agriculture, agrarian-industrial complex, transport and others.
As a new period in the action of the Institute of Economics is to be regarded the 1999. In this year, the scientists decided to reorganize the public institute into a form of private property merging it with the established by scientists themselves private Institute with the similar name – Institute of Economics of Latvian Academy of Sciences. The range of researches extended and changed. Parallel to existing topics, there started to develop such research areas as regional development, economic growth, knowledge economy and others.