June 2025: 1.45% (B+ grade)

Louisiana inventionINDEX June 2025: 1.45% (B+ 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 inventionINDEX score for Louisiana in June 2025 stands at 1.45%, matching both July 2024 and June 2024, suggesting a return to earlier performance levels after a period of moderate fluctuations. Compared to May 2025’s 1.03%, the current score marks a significant uptick, signaling renewed momentum in innovation activity. This improvement likely reflects a rebound in patent filings, technology development, or investment in R&D-intensive sectors during the second quarter of 2025.

Throughout the last twelve months, Louisiana’s inventionINDEX has varied, with notable highs and lows. October 2024 recorded the peak score at 2.40%, indicating a potential surge in innovation that month-possibly due to seasonal funding cycles, university tech transfers, or policy incentives. In contrast, August 2024 saw a dip to 0.82%, the lowest point in the year, possibly reflecting delayed filings or reduced output in the private sector. The most recent score positions Louisiana above its twelve-month average, offering a promising signal for the state’s innovative capacity.

Higher inventionINDEX scores are typically associated with stronger economic prospects. A higher score implies increased intellectual property activity, often driven by research institutions, startups, and established industry players investing in product development. This can lead to job creation, enhanced competitiveness, and stronger appeal to venture capital or federal research grants. Sustained high scores can also foster a more robust innovation ecosystem, reinforcing Louisiana’s long-term growth trajectory in high-value sectors.

Conversely, when the index declines, it may reflect a downturn in R&D activity, reduced funding, or delays in innovation commercialization. These dips can hinder regional competitiveness, slow job creation, and signal broader structural issues in the innovation pipeline. Persistent low scores could also impact Louisiana’s reputation among investors and policy stakeholders. Monitoring this index consistently is key to understanding both opportunities and risks in the state’s innovation landscape.

Discussion:

In June, the Louisiana inventionINDEX scored a positive sentiment which was higher than the previous year’s average and outperformed the downward trend for the year. This is similar to the prior 12 months, which experienced a slight 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 Louisiana office provides R&D tax credit consulting and advisory services to New Orleans, Baton Rouge, Shreveport, Lafayette, Lake Charles, Kenner, Bossier City, Monroe, Alexandria and Houma.

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. 

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