ALASKA INVENTIONINDEX | APRIL 2025

April 2025: 1.17% (C+ grade)

Alaska inventionINDEX April 2025: 1.17% (C+ grade)

The inventionINDEX measures innovation output by comparing GDP growth with patent production growth. 

Anything over C grade is positive sentiment; anything under C is negative outlook/sentiment. Using that sentiment, it is possible to observe trends over time, and also compare states/countries. In doing so, we can predict which states have the best chance to recover economically from the pandemic (or any other economic incident that may occur).

Over the past six months, the Alaska inventionINDEX Score has shown a notable upward trend. From November 2024 to April 2025, the index experienced alternating movements but ended at a high. Specifically, the score was 0.81% in November 2024, dropped to 0.44% in December, rose to 0.81% in January 2025, remained flat at 0.44% in February and March, and then jumped to 1.17% in April 2025. This latest figure marks the highest score in the six-month span and matches the previous peak from October 2024, indicating a resurgence in inventive activity across the state.

This increase in the inventionINDEX Score reflects positively on Alaska’s R&D ecosystem. A higher score suggests enhanced innovation output—possibly driven by increased patent filings, successful prototype development, or higher R&D spending by institutions and businesses. Such growth can lead to improved commercialization opportunities, job creation in technology sectors, and elevated national interest in Alaska’s innovation potential. Moreover, a 1.17% score may attract more federal grants and private investments for emerging technologies in the region.

However, the two-month stagnation at 0.44% in February and March 2025 raises some concerns. A low or flat score over consecutive months can indicate reduced innovation efforts, limited research activity, or administrative bottlenecks in the patenting process. If such stagnation persists, it can erode momentum, lower confidence among stakeholders, and reduce competitiveness compared to more consistent regions. This could potentially delay technological progress and diminish returns on existing R&D investments.

In conclusion, while the April 2025 spike is encouraging and highlights a positive turnaround, maintaining consistent growth is crucial. Policymakers and innovation leaders should capitalize on the recent momentum by strengthening support systems for inventors, streamlining R&D funding, and ensuring continuity in innovation pipelines. A balanced focus on sustaining highs and minimizing lows will help solidify Alaska’s position as a vibrant hub for invention.

Discussion:

In April, the Alaska inventionINDEX scored a positive sentiment which was higher than the previous year’s average and outperformed the downward trend for the year. This is in contrast to the prior 12 months, which experienced an upward trend. 

As the economy continues to stabilize in the post-pandemic era, it remains uncertain whether any backlog of applications still exists or if the department has returned to normal processing timelines. The inventionINDEX could also be affected by lingering consequences from the pandemic, such as company closures, reduced workforces, and limited R&D capabilities, which may still be impacting current operations.

Learn More:

Are you thinking of patenting any of your bright ideas? Did you know your research work could be eligible for the R&D Tax Credit and you can receive up to 14% back on your expenses? To find out more, please check out our free online eligibility test.

Swanson Reed’s Alaska office provides R&D tax credit consulting and advisory services to Anchorage, Fairbanks, Juneau, Sitka and Wasilla.

Feel free to book a quick teleconference with one of R&D tax specialists at a time that is convenient for you, if you would like to learn more about R&D tax credit opportunities.

Who We Are:

Swanson Reed is the largest Specialist R&D tax credit advisory firm in the United States. With offices nationwide, we are one of the only firms globally to exclusively provide R&D tax credit consulting services to our clients. We have been exclusively providing R&D tax credit claim preparation and audit compliance solutions for over 30 years.

Swanson Reed hosts daily free webinars and provides free IRS CE and CPE credits for CPAs.  For more information please visit us at www.swansonreed.com/free-webinars or contact your usual Swanson Reed representative.