The results show' that a lack of skilled employees is currently the most important barrier to innovation. One-quarter of all firms report that this obstacle is highly important in impeding innovation. Other important widespread barriers include difficulties to obtain government grants for innovation, a lack of internal finance for innovation and excessively high innovation costs, each reported as being of high importance by about 20% of all firms. Competition and demand are less frequently reported barriers, while lack of credit or private equity, and lack of collaboration partners are experienced by only a small share of firms as important barriers to innovation. Skills are less often perceived as a barrier in service industries and in low-tech manufacturing. This marks a significant change in Austria’s position in the European and wider global innovation eco-system.