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The article is devoted to analyses of conditions that facilitate development of knowledge-based sectors and economic activities in Latvia which create the demand for a knowledge-based society. Investigation of the essence of a knowledge-based society revealed that it is a natural stage in social development. A knowledge-based society is not the final stage, a measurable and assessable material thing or the sum total of a given set of circumstances. The formation of a knowledge-based society is a global process, and elements of a knowledge-based society develop in a country regardless of its capabilities, resources and attitude towards a knowledge-based society. This article, which is based on the confirmed hypothesis that a knowledge-based economy creates advantages in obtaining benefits and developing social welfare, analyses sectors and economic activities in Latvia which do shape or could shape the knowledge-based part of the national economy and determines its size. Furthermore, this article identifies the extent to which national policy, as well as education and the research system, facilitates development of knowledge-based sectors and enterprises and the knowledge society that, in turn, strengthens them.