This study aims to provide an empirical evidence on the relationship between innovation and employment growth at the firm level. I separately analyze the effects of the process and product innovations for Turkish manufacturing and service sector. Depending on data availability, I cover three consecutive periods: 2006-2008, 2008-2010 and 2010- 2012. I use the structural framework developed by Harrison et al. (2014). The Community Innovation Survey (CIS) which is collected by Turkish Statistical Office (Turkstat) provides me the data needed to disentangle the effects of product and process innovations on employment growth. I find that product innovations increase employment growth, whereas process innovations do not account for job destruction in the manufacturing sector, but are responsible for significant but small displacement effect during the period 2008-2010 and 2010-2012 in the service sector
