The aim of the research is to analyze the role of the urban areas in the state polycentric development taking into account individual economic, social, cultural, natural and historical characteristics as well as development potential of each part of the country. This paper focuses on the study of the positive impact of the urban development on the socioeconomic growth of the region. The hypothesis of the research - partnership formation between state territorial administrative units balances the individual economic sectors and specific interests of the urban and rural settlements as well as promotes self-development processes of the urban and rural areas. The research is based on the three methods: 1) logically constructive method – logical interpretation of the data published by the other authors on the importance of using the concentrate potential of the urban areas for the need of the regional development; 2) monographic method – interpretation of the data based on proven knowledge about the mutual interaction between urban and the surrounding areas which is the engine for regional growth, innovation and employment creation; 3) document analysis method – study and evaluation of the normative acts and scientific researches on the tendencies and problems of the regional development at the context of the aim of this research. The results of this study showed that it is crucial to develop and to promote mutual partnership between the state territorial administration units for the national growth and competitiveness. Proposals for the polycentric development of the Republic of Latvia have been made.