Innovation capacity - problems and solutions for successful development

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 main results of analysis show that only a few elements of innovation capacity building are functioning at Latvian enterprises, whose aim is to build a base for the innovation capacity of the country. 