The research andanalysis of strengths and weaknesses of national innovation system is extremelyimportant to successful and efficient innovation support policymaking.Innovation support policies should take into consideration all specifies ofnational innovation system in the country, not being one-size-fits-all. Untilnow, little analysis on the Latvian innovation system was made. The paper aimsto show Latvian innovative performance and to propose factors forwell-functioning innovation system of Latvia. This research gives apossibility to researchers and policy-makers to investigate the mismatchbetween policies and problems and identify policy gaps.