European Union requires policy makers to consider how the different aspects of smart, sustainable and inclusive growth are interrelated. Integrated smart specialization strategies respond to complex development challenges by adapting the policy to the regional context. Smart specialization is a new innovation policy concept designed to promote the efficient and effective use of public investment in research. Its goal is to boost regional innovation in order to achieve economic growth and prosperity, sustainable development of regions, to allow regions to focus on their strengths. The goal of the research is to analyse possibilities of smart specialization and to propose suggestions for smart specialization areas in one of the Latvia’s regions - Vidzeme Planning Region (VPR). The main tasks of the research are to analyze smart specialization resources of VPR and to evaluate region’s competitive advantages; to propose smart specialization areas in VPR; to propose economic and innovation indicators, their measurement and monitoring at NUTS 3 level. To carry out tasks of the research quantitative and qualitative research methods were applied: document analysis, formation of focus group, questionnaire of experts, grouping of data and information, statistical data processing, calculation of average and relative values, graphical analysis, inductive and deductive methods of analysis. Because national-level priorities and areas of specialization are defined, it is necessary to define smart specialization trends at the regional level on the basis of resource analysis for smart specialization, covering such areas as business development, education and innovation. The strategy provides targeted focus of resources to research and innovation in specialization areas, where the region has a comparative advantage or the base for creation of such advantage. Based on the analysis of the existing situation in the region, the strategic goals for Vidzeme region smart specialization were proposed. Based on expert evaluation specific smart specialization areas were determined.