A driving circuit of an electro-optical device such as a liquid crystal device is compatible with digital image signals and implements a DA converting function and a &ggr; correcting function by a relatively simple and small-scale circuit configuration. The driving circuit of the liquid crystal device is provided with a DAC 3 for issuing a voltage signal VC corresponding to N bits of digital image data DA that indicate a gray scale value to a signal line of the liquid crystal device. Depending on whether the value of a most significant bit is “0” or “1,” the DAC 3 brings the output driving voltage characteristic close to the optical characteristics of the liquid crystal device according to the a pair of first or second reference voltages so as to make a &ggr; correction.