In comparison with the other EU (27) countries Innovation capacity indicators in Latvia remain low and considerably underperform. Problems and solutions are illustrated to represent innovation capacity in Latvia. The article consists of the following parts: first - theoretical aspects are selected to describe the essential definition of the analyzed subject. In the second part, experience from abroad is described, at the end – Latvian innovation policy and situation is analyzed and suggestions for further needs are formulated.

The presented model of operations capacity planning allows obtaining quantitative dimensions of the service system parameters for Administrative Services Centre. A methodology for the practical application of this model has also been presented here. The present paper aims at offering support for operations managers in the service sector for decision making regarding the operations capacity. The paper was presented at 7th annual International scientific conference "New dimensions in the development of society", held in Jelgava, Latvia, in 2011.