Beyond financing innovation: The rise of non-financial barriers to innovation in emerging economies, evidence from Chilean companies from 2007 to 2016

Understanding the impact of perceived obstacles on various inputs and outcomes within the innovation process is essential for firms engaged in innovation activities. While much of the existing theoretical framework focuses on financial barriers, that is, the economic constraints that limit firms’ ability to develop and implement new ideas, products, or processes, this article expands and complements the literature by examining the influence of non-financial obstacles. These include knowledge limitations, organizational challenges, market constraints, and regulatory hurdles, all of which can hinder innovation even when financial resources are available. Thus, the objective of this study is to analyze the evolution of the perception of obstacles to innovation in Chilean companies. The study draws on data from versions VI to X of the Chilean National Innovation Surveys, covering the period 2007–2016, and applies confirmatory factor analysis to identify latent perceptions of barriers, along with multiple linear regression models to evaluate their relationship with inputs, outcomes, and R&D activities. The findings show that non-financial barriers are as significant as financial ones and reveal distinct temporal trends: while financial obstacles tend to decrease over time, barriers related to knowledge, cooperation, demand, and regulation have gained relevance, particularly affecting small and medium-sized enterprises. This longitudinal perspective provides a novel empirical contribution to the study of innovation in developing economies and offers key insights for the design of more targeted and adaptive public policies.