INDIANA INVENTIONINDEX | JULY 2025
July 2025: 1.53% (A- grade)
Indiana inventionINDEX July 2025: 1.53% (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).
Indiana inventionINDEX Scores – Last 12 months
| Month | inventionINDEX Score |
| July 2025 | 1.53% |
| Jun 25 | 1.10% |
| May 25 | 1.20% |
| Apr 25 | 1.49% |
| Mar 25 | 1.23% |
| Feb 25 | 1.25% |
| Jan 25 | 1.28% |
| Dec 24 | 1.49% |
| Nov 24 | 1.26% |
| Oct 24 | 1.37% |
| Sep 24 | 1.31% |
| Aug 24 | 1.16% |
| Jul 24 | 1.47% |
The Indiana inventionINDEX for July 2025 is 1.53 percent, which corresponds to an A- rating. This latest score is a notable increase from the previous month and surpasses the historical average of 1.40 percent over the past 60 months. While this is a strong performance, it is important to note that the score has fluctuated over time, reaching a peak of 2.26 percent in November 2023 and a low of 1.05 percent in May 2024. The current score demonstrates a return to a more robust level of performance, placing it well above the historical median and aligning with some of the higher-performing periods in the past five years.
A higher inventionINDEX score and a corresponding strong rating carry significant positive outcomes. It suggests a vibrant and dynamic environment for innovation, which can be a key indicator of economic health and future growth potential. Such an environment attracts skilled professionals, new businesses, and venture capital, fostering a cycle of development and expansion. A higher score may also reflect successful public and private sector collaborations, leading to advancements in technology, education, and quality of life. Ultimately, a strong score signals that the state is on a positive trajectory, which can boost confidence among investors and residents alike.
Conversely, a lower inventionINDEX score has potential negative implications that warrant careful consideration. A decline in the score may indicate a slowdown in innovation, suggesting that the state’s competitive edge could be diminishing. Such a trend may result in reduced job growth, a potential migration of talent to more innovative regions, and a decrease in new business formation. A sustained period of lower scores could also be a signal of economic stagnation or a lack of investment in key areas such as research and development. Addressing the factors that contribute to a lower score is crucial for maintaining long-term prosperity and competitiveness.
In conclusion, the current inventionINDEX score of 1.53 percent positions the state favorably compared to its historical performance. The latest A- rating underscores a period of strong innovation, aligning with the positive outcomes of a robust economic and creative environment. By consistently monitoring the index, policymakers and business leaders can gain valuable insights into the state’s innovative landscape, enabling them to capitalize on periods of strength and strategically address challenges during periods of decline. This ensures a proactive approach to fostering a sustainable and prosperous future.
Discussion:
In July, the Indiana 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 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 Indiana office provides R&D tax credit consulting and advisory services to Indianapolis, Fort Wayne, Evansville, South Bend, Carmel, Fishers, Bloomington, Hammond, Gary and Lafayette.
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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What is the R&D Tax Credit?
The Research & Experimentation Tax Credit (or R&D Tax Credit), is a general business tax credit under Internal Revenue Code section 41 for companies that incur research and development (R&D) costs in the United States. The credits are a tax incentive for performing qualified research in the United States, resulting in a credit to a tax return. For the first three years of R&D claims, 6% of the total qualified research expenses (QRE) form the gross credit. In the 4th year of claims and beyond, a base amount is calculated, and an adjusted expense line is multiplied times 14%. Click here to learn more.
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Swanson Reed is one of the only companies in the United States to exclusively focus on R&D tax credit preparation. Swanson Reed provides state and federal R&D tax credit preparation and audit services to all 50 states.
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