Institutional economics argue that institutions are the fundamental cause of differences in socioeconomic development. The aim of this paper is to evaluate the impact of institutions (measured as values and dimensions of governance) on the socioeconomic development in factor-driven, efficiency-driven and innovation-driven economies. The results of the analysis approve that institutions measured as values and the dimensions of governance play an important role in socioeconomic performance. But the importance of specific institutions depends on the socioeconomic development level of the economy. It should be taken into account when shaping public policies to improve institutional environment in a specific territory. It is especially important for post-soviet countries like Latvia because of a different historical and cultural experience.