Abstract: This paper aims at understanding if the national innovation system affects the perception of obstacles to innovation by innovators, firms engaged in innovative activities that have introduced technological innovation. The research objective is reached by comparing the perception of obstacles faced by French and Italian firms and by analyzing the differences in the determinants of barriers to innovation during the period 2002-2004 using CIS4. Descriptive statistical analysis highlights that the perception of obstacles varies across countries. In particular, French innovators are more affected by barriers to innovation. A multivariate probit model allows us to study simultaneously the different barriers taking into account their potential interdependence. The main results imply that policy makers aimed at lower the barriers to innovation, beyond common policy objectives, should design country-specific public subsidies that target the specific determinants of obstacles highlighted at country level. Keywords: Obstacles to innovation, Innovators, National Innovation System, France, Italy JEL codes: O31, O32, O33, O38
