Innovation has been identified in literature as a capacity that must be developed in order to ensure the best performance of the companies, in Mexico are few the empirical studies in order to know the strategic orientations that shall be developed in order to increase the innovation levels. This study used a sample of 350 small and medium companies, to which a poll was sent to its top management positions or owners, in order to identify if the learning orientation influences in obtaining better levels of innovation in the context of SMEs and that such influence impacts to its better performance. The results indicate that the learning orientation is a good predictor to improve the innovation and the performance of the company. Key Words: Learning Orientation, Innovation, Performance, Small and Medium Enterprises.