large profits in a capitalistic system according to economist joseph schumpeter, derive from one sourcennovation. they're the superabundant rewards given to those who are clever enough, daring enough, enterprising enough, to come up with something new. the apple computer story is a letter-perfect example of what schumpeter was talking about. a few points about this process-- first, innovation decisions are quite different from the expected rate of return calculations we discussed earlier. how can you calculate a rate of return when you're doing something new? it's doubtful the interest rate plays any major role here. second, the entrepreneurs weren't risking big money. they sold a van and a calculator. their risks were far more subtle, a sense of failure, perhaps, reputations, schumpeter might have said. third, the huge profits did not last that long. ibm and all their brotherhood quickly swooped down into the personal computer market. entrepreneurial profits are often huge but also transitory. the swarm follows the leader. this was part of schumpeter's description. schumpeter's general