June 2025: 1.26% (C grade)

Michigan inventionINDEX June 2025: 1.26% (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 inventionINDEX score for Michigan in June 2025 stands at 1.26%, reflecting a moderate yet stable level of inventive activity. When compared to May 2025’s score of 1.33%, there is a slight dip, though not dramatic enough to suggest a significant shift in trend. However, the contrast becomes more apparent when looking back to April 2025, which saw a peak score of 1.68%. This indicates that while recent performance has remained relatively consistent, it has not yet returned to the heightened activity levels observed earlier in the year.

This current score is slightly above the annual average, showing some resilience. Notably, June 2025 outperforms several earlier months such as March (0.80%), November (0.97%), and August (0.70%), suggesting a recovery from periodic downturns. The score also surpasses June 2024’s figure of 1.13%, reinforcing a longer-term upward trajectory. This positive momentum could indicate that innovation efforts in Michigan are becoming more sustained and less susceptible to seasonal fluctuations or temporary slowdowns.

A higher inventionINDEX score typically signals robust patent activity, effective R&D investments, and an innovation ecosystem that is translating research into tangible intellectual property. For Michigan, this could attract greater venture capital interest, strengthen its manufacturing and technology sectors, and lead to job creation in high-skilled industries. Moreover, a consistently high score supports long-term competitiveness and may enhance the state’s reputation as a hub for industrial and technological development.

Conversely, if the score trends downward, as seen in March 2025 or August 2024, it may point to reduced innovation output or challenges in commercializing research. Such declines can deter investment and slow regional economic growth, particularly in sectors that rely on continual advancement. It becomes critical in these periods to assess the effectiveness of public and private innovation incentives, as well as to ensure that startups and research institutions are well-supported in bridging the gap between concept and commercialization.

Discussion:

In June, the Michigan inventionINDEX scored a positive sentiment which was lower than the previous year’s average but outperformed the downward trend for the year. This is in contrast to the prior 12 months, which experienced a slight 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 Michigan office provides R&D tax credit consulting and advisory services to Detroit, Grand Rapids, Warren, Sterling Heights, Ann Arbor, Lansing, Flint, Dearborn, Livonia, Troy, Westland, Farmington Hills, Kalamazoo, Wyoming, Rochester Hills, Southfield, Taylor, Pontiac, St Clair Shores and Royal Oak.

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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