June 2025: 1.06% (A- grade)

North Dakota inventionINDEX June 2025: 1.06% (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).

North Dakota’s inventionINDEX for June 2025 registered at 1.06%, marking a slight decline from May’s 1.19% but aligning with the state’s March 2025 score. While the month-over-month decrease may raise questions about current innovation activity, the June figure remains consistent with the state’s broader 12-month trend, which has fluctuated within a narrow band of 1.00% to 1.19%. This stability indicates a generally steady output of patent filings and inventive activity.

Comparatively, North Dakota has maintained a balanced pace of innovation. Peaks in May 2025 and October 2024 (both at 1.19% and 1.17%, respectively) suggest that the state has the potential for higher output, particularly when supported by favorable business or research conditions. The repeated return to a score around 1.06% may reflect structural factors such as industry composition or the pace of academic R&D commercialization that remain consistent over time.

A higher inventionINDEX score typically correlates with increased patent filings, signaling an active innovation pipeline. For North Dakota, this can translate to stronger economic prospects, more robust tech-sector engagement, and higher potential for federal or private R&D investment. Sustained innovation also tends to attract talent and foster entrepreneurship, strengthening the state’s long-term competitiveness.

Conversely, if the index were to slip further, particularly below the 1.00% mark last seen in April 2025, it could suggest a weakening of the innovation climate. This might reflect reduced R&D expenditure, fewer university-industry collaborations, or diminished support for startups. For policymakers and industry leaders, maintaining or improving the current score should remain a priority to ensure innovation remains a key driver of economic resilience in North Dakota.

Discussion:

In June, the North Dakota inventionINDEX scored a positive sentiment which was lower than the previous year’s average and underperformed 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 North Dakota office provides R&D tax credit consulting and advisory services to Fargo, Bismarck, Grand Forks, Minot, and West Fargo.

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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