In the paper, the philosophical and historical evolution of social transfers and their role in Latvia's social security system have been investigated. Definitions of social transfers have been studied, and a classification of social transfers has been made. The most suitable social security system, which, to a great extent, depends on social policies and a socio-economic situation in a country, is elaborated in every country. Latvia's social security system includes state social insurance, state social benefits, social services, and social assistance that are based on financing from both the state basic budget and the state special budget, and municipal budgets. Social transfers have a significant role in the social security system in order to provide protection for the population in social risk situations; they impact the welfare of the population during this period.

Latvia is one of the forest-richest countries in Europe. Very often in young forest stands of spruce admixture of coniferous or deciduous trees are taking place. During the growth trees suffer from influence of different risk factors. Damages in mixed stands depend on chosen mode and intensity of economic activities. Forest management cannot be imagined without creating the infrastructure (roads, ditches, etc.). However, the development of infrastructure may cause an effect of fragmentation and lead to changes in the forest structure. The aim of the research is to analyze influence of forest spatial features on the sanitary state of mixed stands of spruce. In 2011 and 2012 mixed stands of spruce younger than 40 years were investigated in all regions of Latvia. Nineteen stands were measured and surveyed and 80 sample plots were arranged. With the help of Geographical Information System (GIS) data base of the State Forest Service of Latvia the forms of forest plots (regular or irregular), as well as location of neighbouring infrastructural objects and location of mixed stands in forests were stated. In unnaturally created regular form plots damages of risk factors usually tend to be larger than in those, which have been created naturally. With the credibility of 95%, linear connection between occurrence of damages caused by browsing and intensity is relevant (r=0.937 is greater than r0.05=0.575), as well as occurrence and intensity of damages caused by Lophophacidium hyperboreum Lagerb. (r=0.999 is greater than r0.05=0.575).

Innovative activity of small and medium-sized enterprises is one of the factors for effective business. The aim of the article is to determine the innovative activities of small and medium-sized businesses in the frontier regions of Latvia (Latgale region), Lithuania (Vilnius region, Alytus region, Utena region, Panevezys region, Kaunas region), Belarus (Vitebsk region, Grodno region, Minsk region, Mogilev region). The novelty of the research has a cognitive character: the authors have determined the level of innovation potential for small and medium-sized enterprises in the regions, which is characterized by a complex of various resources, the amount of the production of innovative product and innovative technology, service in the regions, the branch structure of innovations in the regions, dominance of certain models of innovative entrepreneurship on the basis of innovative process organization in the companies located in the frontier regions has been established. The following methods are used for the research: logical analysis and synthesis, monographic and analytical method for studying economic theoretical and empirical sources of the international level, quantitative and statistical methods of data processing – frequency analysis, sampling; for the collection of the initial primary data the instrument of questionnaire was used.