ILLINOIS INVENTIONINDEX | JULY 2025

July 2025: 1.75% (A+ grade)

Illinois inventionINDEX July 2025: 1.75% (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).

Illinois inventionINDEX Scores – Last 12 months

The Illinois inventionINDEX has demonstrated considerable volatility over the last 60 months, marked by significant swings between top-tier and lower-tier ratings. The most recent score of 1.75%, earning an A+ rating in July 2025, represents a strong positive rebound from the C rating of 1.02% just one month prior. This pattern of sharp increases and decreases is not new, as seen with the impressive 3.00% score in October 2023, which was shortly followed by a decline, and a similar jump from a C+ to an A+ between December 2022 and January 2023. These fluctuations indicate a dynamic, but sometimes inconsistent, environment for innovation within the state.

A higher inventionINDEX score and a top rating, such as the A and A+ grades, are indicative of a robust and healthy innovation ecosystem. These high marks often reflect periods of heightened patent filings, increased research and development activity, and a thriving climate for technological advancement. For the state of Illinois, consistently achieving a high score would signal to potential investors and corporations that its environment is fertile ground for new ideas and their commercialization. Such a standing can attract significant capital, foster job growth in high-tech sectors, and enhance the state’s reputation as a national leader in innovation.

Conversely, a lower score, like the D+ and F ratings recorded in August 2024 and July 2023, respectively, can have negative implications. These low points may suggest a cooling period for intellectual property generation, a decrease in venture capital funding for early-stage companies, or potential challenges in moving new technologies from the lab to the market. A prolonged period of low scores could deter entrepreneurs from starting new ventures and discourage established companies from investing in the state, potentially leading to a stagnation of economic growth and a loss of competitive edge in key industries.

In conclusion, the historical data highlights the inventionINDEX as a critical benchmark for the state of Illinois’s innovative health. The significant variance in scores underscores the importance of not just achieving a high mark, but of sustaining it. The recent jump to an A+ rating in July 2025 is a positive development, but it must be viewed within the context of the historical ebb and flow. Monitoring these fluctuations closely and addressing the underlying factors that contribute to both the highs and lows will be essential for fostering a more stable and consistently innovative future.

Discussion:

In July, the Illinois 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 considerable 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 Illinois office provides R&D tax credit consulting and advisory services to Chicago, Aurora, Rockford, Joliet, Naperville, Springfield, Peoria, Elgin, Waukegan, Champaign, Bloomington, Decatur, Evanston, Des Plaines, Berwyn, Wheaton, Carbondale, Mount Prospect, Oak Lawn and Skokie.

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. 

Swanson Reed hosts daily free webinars and provides free IRS CE and CPE credits for CPAs.  For more information please visit us at www.swansonreed.com/free-webinars or contact your usual Swanson Reed representative.

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