Impact of Knowledge Obstacles on Chilean Firms´sInnovation Most of previous literature about innovation obstacles has focused on the impact financial constraints. In this paper, using the 8th Chilean Innovation Survey, we analyze the impact of knowledge obstacles on the probability of introducing innovations. Our results show that, dealing with endogeneity of the obstacles, these reduce the innovation probability in the Chilean firms. This impact is negative for both technological and non-technological innovations. Our findings have relevant policy implications, suggesting that policies not only have to be focused on financial constraints, but also on knowledge barriers such as availability of human resource and information about markets and new technologiesMost of previous literature about innovation obstacles has focused on the impact financial constraints. In this paper, using the 8th Chilean Innovation Survey, we analyze the impact of knowledge obstacles on the probability of introducing innovations. Our results show that, dealing with endogeneity of the obstacles, these reduce the innovation probability in the Chilean firms. This impact is negative for both technological and non-technological innovations. Our findings have relevant policy implications, suggesting that policies not only have to be focused on financial constraints, but also on knowledge barriers such as availability of human resource and information about markets and new technologies