%0 Journal Article %T The Return to Independent Invention: Evidence of Risk Seeking, Extreme Optimism or Skewness-Loving %+ Joseph L. Rotman School of Management %A Astebro, Thomas %< avec comité de lecture %@ 0013-0133 %J The Economic Journal %I Oxford Academic %V 484 %N 113 %P 226-239 %8 2003-01 %D 2003 %R 10.1111/1468-0297.00089 %K invention %K IRR %K inventive activity %Z Humanities and Social Sciences/Business administration/domain_shs.gestion.stratJournal articles %X Examining a sample of 1,091 inventions I investigate the magnitude and distribution of the pretax internal rate of return (IRR) to inventive activity. The average IRR on a portfolio investment in these inventions is 11.4%. This is higher than the risk-free rate but lower than the long-run return on high-risk securities and the long-run return on early-stage venture capital funds. The portfolio IRR is significantly higher, for some ex ante identifiable classes of inventions. The distribution of return is skew: only between 7-9% reach the market. Of the 75 inventions that did, six realised returns above 1400%, 60% obtained negative returns and the median was negative. %G English %L hal-00480030 %U https://hec.hal.science/hal-00480030 %~ SHS %~ HEC