The Law of Proportionate Effect depicts that firm's growth rate is independent of its size; Gibrat (1931). Some of the existing studies support the law: Hymer and Pashigian (1962), Mansfield (1962), among others. However, Gale (1972), Shepherd (1972) and recently Punnose (2008) report a positive...

This article explores the possibility of associating firm size vis-à-vis industry size with firm-level R&D led-innovation and the resultant impact(s) on industry level output and price. We consider an oligopolistic industry having one dominant firm and some fringes. Innovation by the dominant...