June 2025: 1.50% (C+ grade)

Ohio inventionINDEX June 2025: 1.50% (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 June 2025 inventionINDEX score for Ohio registered at 1.50%, showing a significant decline from May’s 2.25%. This downward shift suggests a slowing of patent activity in the state, although the current figure remains higher than March’s 0.91%. Compared to the same month last year-June 2024’s 1.64%-the state is slightly trailing its year-over-year performance. While the monthly dip does not appear alarming in isolation, it may reflect a need to re-engage inventors and businesses in the region’s innovation pipeline.

Ohio’s innovation climate has demonstrated volatility over the past 12 months, with highs like July 2024’s 3.47% and lows below 1% in March and November 2024. The recurring fluctuations could indicate sporadic surges in patent filings tied to seasonal business cycles or funding patterns. Encouragingly, the state’s performance in early 2025-particularly in February and January-suggests that sustained growth is possible when the conditions are favorable. Maintaining consistency, however, remains a challenge.

Higher inventionINDEX scores often correlate with increased research activity, business confidence, and investment in emerging technologies. When Ohio achieves a stronger score, it enhances its visibility as a center for innovation, attracting capital, skilled workers, and partnerships with research institutions. These outcomes can generate downstream benefits, including job creation and economic diversification, especially in sectors like advanced manufacturing, biotech, and green energy.

Conversely, lower scores can signal missed opportunities. A lack of patent filings may suggest stagnation in R&D or barriers to commercialization for local inventors. Persistent lulls may also affect public and private sector confidence in the region’s innovation capacity. Addressing these risks may require targeted incentives, policy shifts, or increased support for early-stage ventures to ensure Ohio remains competitive in the national innovation landscape.

Discussion:

In June, the Ohio inventionINDEX scored a positive sentiment which was lower than the previous year’s average and underperformed the downward trend for the year. This is in contrast to the prior 12 months, which experienced an 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 Ohio office provides R&D tax credit consulting and advisory services to Columbus, Cleveland, Cincinnati, Toledo, Akron, Dayton, Parma, Canton, Youngstown, Lorain, Hamilton, Springfield, Kettering, Elyria, Lakewood, Cuyahoga Falls, Middletown, Euclid, Newark and Mansfield.

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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