This study examined the impact of small and medium-sized enterprises' technological capabilities and innovation impediments on product innovation performance. In order to explore the relationship between the innovation performance of small and medium-sized manufacturing companies, which are the foundation of Korea's industry, we looked at the Korean Innovation Survey(KIS) data conducted by the Science and Technology Policy Institute(STEPI) to determine the 'innovation hindrance factors' of companies, the influence relationship on 'product innovation performance' was analyzed. While limiting the company's innovation performance to product innovation rather than a single dimension of sales or exports, it was divided into market-first product innovation and company-first product innovation and used this in the empirical analysis. Therefore, this study will examine the impact of technological capabilities on innovation performance in domestic manufacturing small and medium-sized enterprises, and at the same time analyze in depth whether factors hindering innovation moderate the relationship between the two. In the end, we aim to stick to the purpose of providing strategic and policy implications necessary to help small and medium-sized enterprises strengthen their internal capabilities that will contribute to improving innovation performance.