July 2025: 4.29% (A+ grade)

Oklahoma inventionINDEX July 2025: 4.29% (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).

Oklahoma inventionINDEX Scores – Last 12 months

Based on the historical data for the last 60 months, the Oklahoma inventionINDEX demonstrates a period of significant volatility with a strong performance in July 2025. The most recent score of 4.29% and an A+ rating represents a remarkable rebound from the negative score of −2.33% and F rating in June 2025. This recent surge places the state’s innovation performance at one of its highest points in the last five years, on par with other top-tier months such as April 2025 and May 2023. However, this is not an isolated trend, as the index has fluctuated substantially, showing both strong peaks and deep troughs throughout the historical record.

A higher inventionINDEX score and a top-tier rating of A+, such as the one seen in July 2025, generally indicates a robust and dynamic environment for innovation. These strong scores reflect a healthy ecosystem of new ideas, patents, and entrepreneurial activity. Such positive outcomes can be a catalyst for economic growth, attracting venture capital, and fostering job creation in high-tech sectors. A consistently high rating suggests that the state’s policies and infrastructure are effectively supporting inventors and innovators, leading to a fertile ground for the development and commercialization of new technologies. This can also enhance the state’s reputation as a hub for intellectual property and business development.

Conversely, a low or negative inventionINDEX score and a failing rating, such as the F ratings observed in June 2025, July 2022, January 2022, and December 2021, have more challenging implications. These periods may signal a downturn in innovative activity, potentially stemming from reduced research and development spending, a decrease in new patent applications, or a general slowdown in the startup ecosystem. A prolonged period of low scores could have negative economic consequences, making it more difficult to attract and retain talented professionals and innovative businesses. This could hinder the state’s ability to compete with other regions for future-focused industries.

The 60-month historical data reveals a pattern of both impressive highs and concerning lows, underscoring the importance of sustained performance. While the recent A+ rating in July 2025 is a positive development, the proximity of the prior month’s F rating highlights a degree of instability in the state’s innovation climate. Maintaining a consistently high inventionINDEX score will be crucial for Oklahoma to build on its successes, mitigate the risks associated with periods of decline, and ensure a stable, long-term foundation for its innovation economy.

Discussion:

In July, the Oklahoma inventionINDEX scored a positive sentiment which was higher than the previous year’s average and outperformed 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 Oklahoma office provides R&D tax credit consulting and advisory services to Oklahoma City, Tulsa, Norman, Broken Arrow, Lawton, Edmond, Moore, Midwest City, Enid, and Stillwater.

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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