J P M O R G A N • In this note, we assess the structural forces that can explain long-term relative returns on small, mid and large caps, and gauge what this implies about their likely performance in the decade ahead. • Increases in business-funded R&D intensity tend to favor larger firms in the long run, likely as they create a barrier to entry to smaller firms and thus raise corporate concentration. • Increases in government-funded R&D intensity tend to favor smaller firms in the long run, likely as they ...