June 2025: 1.61% (A+ grade)

Iowa inventionINDEX June 2025: 1.61% (A+ 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 12 months, Iowa’s inventionINDEX score has demonstrated a generally upward trend, culminating in a strong 1.61% score for June 2025. This marks the highest point in the year and a significant improvement over the same month last year, which registered a modest 1.08%. The consistent rise from January 2025 (1.10%) to April 2025 (1.96%) suggests a resurgence in inventive activity across the state. This increase likely reflects heightened research and development efforts, successful patent filings, and possibly greater collaboration between academia, startups, and industry stakeholders.

A higher inventionINDEX score, as seen in June 2025, is typically a positive signal for the state’s innovation ecosystem. It may indicate increased investment in intellectual property development and stronger engagement with emerging technologies. For Iowa, such performance can enhance its competitiveness in attracting federal grants, private capital, and new business ventures. This could translate into long-term economic gains, job creation in advanced sectors, and a broader innovation footprint, positioning the state as a more attractive hub for tech-driven industries.

However, fluctuations in the monthly data illustrate that sustained momentum is not guaranteed. For instance, the score dropped from 1.96% in April 2025 to 1.24% in March and then rebounded. Additionally, the relatively low values observed in the second half of 2024-especially October 2024 at 0.99%-suggest underlying challenges in consistency. These might stem from reduced patent filings, fewer disclosures from universities, or slower adoption of R&D incentives. Such dips can make it harder to build a robust innovation pipeline and may affect public and private sector confidence.

To mitigate volatility and support continued growth, Iowa may benefit from strengthening policies around innovation funding, university-industry collaboration, and talent retention. Encouraging startups to commercialize research and maintaining momentum through strategic planning will be essential to sustain or even exceed current levels. The June 2025 score represents a high point, but long-term progress will depend on Iowa’s ability to build on this foundation with consistency and strategic foresight.

Discussion:

In June, the Iowa inventionINDEX scored a positive sentiment which was higher than the previous year’s average and outperformed 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 Iowa office provides R&D tax credit consulting and advisory services to Des Moines, Cedar Rapids, Davenport, Sioux City, Iowa City, Waterloo, West Des Moines, Ames, Council Bluffs and Dubuque.

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:

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