DELAWARE INVENTIONINDEX | JUNE 2025

June 2025: 1.16% (C+ grade)

Delaware inventionINDEX June 2025: 1.16% (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).

The Delaware inventionINDEX for June 2025 stands at 1.16%, showing a modest decrease from May’s 1.27% but maintaining a stable position in the mid-range of its 12-month performance. This recent score suggests a slight slowdown in invention activity compared to the spring peak in April 2025, when the index reached 2.03%. However, the current figure still outpaces several past months, including August 2024 (0.60%) and November 2024 (0.81%), indicating that Delaware’s innovation output remains relatively healthy.

Delaware’s highest mark over the past year was in April 2025, a time that likely reflected increased R&D efforts or a spike in patent filings. The sharp contrast between that peak and the most recent reading might point to short-term fluctuations, possibly influenced by seasonal filing patterns or delays in patent processing. Despite the decline since April, the June 2025 figure remains above the state’s average score from the latter half of 2024, reinforcing a generally positive trend.

A higher inventionINDEX, like the 2.03% observed in April, typically signals a surge in innovation. This can attract investment, boost regional competitiveness, and strengthen intellectual property portfolios. It also suggests an active innovation ecosystem, which benefits universities, startups, and established firms alike. When scores rise, it reflects increased engagement in the patent system, a key measure of applied research and commercial potential.

Conversely, when the score dips-as it did in August 2024 and November 2024-it may indicate reduced invention activity or delays in filings. Persistent low scores can be a red flag for policymakers, hinting at underinvestment in R&D or barriers to commercialization. While single-month declines are not always cause for concern, long-term stagnation could undermine the state’s role in national innovation and limit growth opportunities across key industries.

Discussion:

In June, the Delaware inventionINDEX scored a positive sentiment which was lower than the previous year’s average and underperformed the upward trend for the year. This is in contrast to the prior 12 months, which experienced a downward 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 Delaware office provides R&D tax credit consulting and advisory services to Wilmington, Dover, Newark, Middletown and Smyrna.

Feel free to book a quick teleconference with one of R&D tax specialists 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.