August 2025: 0.92% (D+ grade)

Connecticut inventionINDEX August 2025: 0.92% (D+ 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).

Connecticut inventionINDEX Scores – Last 12 months

Based on the provided historical data for the last 60 months, the Connecticut inventionINDEX presents a dynamic picture of the state’s innovative performance. While the most recent score of 0.92% with a D+ rating in August 2025 is slightly below the 60-month average of 1.00%, it sits within a pattern of recent fluctuations. This recent score represents a decline from the 1.09% score and B- rating in July 2025, suggesting that a consistent upward trajectory has yet to be established. The historical data shows a wide range of outcomes, from the highest recorded score of 1.36% in October 2020 to the lowest of 0.82% in November 2024.

A high inventionINDEX score, such as the 1.36% achieved in October 2020 with an A+ rating, is a strong indicator of positive economic and technological health. This suggests a period of significant innovation, where new ideas, patents, and business ventures are flourishing. Such an environment attracts investment, nurtures job growth in high-tech sectors, and establishes Connecticut as a hub for creativity and forward-thinking enterprise. These top scores highlight the state’s potential to lead in innovation and create a robust, competitive economic landscape.

Conversely, a lower inventionINDEX score signals potential challenges and negative implications. The lowest score in the last five years, 0.82% with an F rating in November 2024, reflects a period of stagnation or decline in innovation. A low score can indicate a decrease in research and development activity, a reduction in the number of new inventions, or an exodus of inventive talent. This could lead to a less competitive economy, reduced job opportunities in innovation-driven fields, and a general loss of momentum in the state’s technological and economic development.

In conclusion, the inventionINDEX serves as a vital barometer for Connecticut’s innovation ecosystem. The fluctuations observed over the last five years underscore that inventive output is not static. While the state has demonstrated its capacity for top-tier performance with A and A+ ratings, it has also experienced periods of significant decline. Sustaining a high score and a favorable rating requires a continuous commitment to fostering an environment that supports research, development, and entrepreneurship to ensure a resilient and prosperous future.

Discussion:

In August, the Connecticut inventionINDEX scored a negative sentiment which was lower than the previous year’s average and underperformed the upward trend for the year. This is in contrast 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 Connecticut office provides R&D tax credit consulting and advisory services to Bridgeport, New Haven, Stamford, Hartford, Waterbury, Norwalk, Danbury, New Britain, Bristol and Meriden.

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.

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