I do not accept the premise that smaller necessarily means more innovative. If smaller drug/biotech companies have historically produced better R&D productivity on average than larger companies, it’s because the smaller companies were smarter, not because they were smaller.
Genentech showed that larger companies too can excel at R&D, but only if they hire the smartest scientists available.
“The efficient-market hypothesis may be the foremost piece of B.S. ever promulgated in any area of human knowledge!”