Abstract This paper estimates the effect of product and process innovation on the employment growth rate in Colombian manufacturing industry between 2007 and 2012. Based on the model forward put by Harrison et al. (2008), employment growth rate is explained by both the introduction of process innovations that have an effect on old products and the product innovations that have a positive effect on the growth of sales. This research uses the firm-level data panel from the Technological Development and Innovation Survey (EDIT) and the Annual Manufacturing Survey (EAM) in Colombia between 2007 and 2012. Given the firm´s production, results show a positive effect of product innovations on the employment growth rate and a negative effect of process innovations on the employment growth rate in manufacturing firms in Colombia. JEL classification: O25, E24, O33