After Latvia has joined the European Union, the industrial production branch has become one of the most important sectors of the Latvian national economy, which contributes to other economic sectors. Usually, in the conditions of economic recession public investment in economy’s infrastructure is increased and companies working in the industrial production sector are involved in its familiarization, thus reducing the effects of the recession in industrial production and throughout economy. Thus, the industrial production sector, with the help of effective national industrial policy, can be used as tool to overcome economic recession and to restructure national economy. The market mechanisms itself do not guarantee a high level of income and wealth attainment, which would be comparable to the rates of developed countries, those mechanisms require an active and purposeful economic policy realization. An active structural policy in the current Latvian republic industrial production structure allows contributing country's future development and prosperity. Focused and long-term industrial production policy is important for the Latvian economy. Industrial production’s share in the Latvian economy has to be analyzed and evaluated. The main research task is to evaluate the concepts of industrial production’s policies and its use necessity. One of the most important industrial policy’s objectives is to promote utilization of the European Union structural funds and fund transfer to sectors with a higher added value. The importance of export must take into account, while prioritizing industrial production industry. Latvia has a small and open economy and export is the main long-term growth factor. The development of priority industries is an important contribution to value added level’s growth. Products of the priority sectors should be of high added value and they should have promising perspective in world markets. The priority sectors should based on Latvia’s existing and available production and development bases. One of the key industry issues is innovation implementation, which is new production technologies, and products that allow companies to use production raw materials and processes more efficiently, as this would result in the growth of productivity and income.