August 2025: 1.22% (B- grade)

Illinois inventionINDEX August 2025: 1.22% (B- 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

Based on the provided historical data for the last 60 months, the most recent inventionINDEX Score for August 2025 stands at 1.22%, earning a B- rating. This score represents a notable decline from the previous month’s 1.75% and a top-tier A+ rating. Over the past year, the index has shown significant volatility, with scores fluctuating between a high of 1.75% in July 2025 and a low of 0.89% in August 2024. This pattern suggests that while periods of exceptional innovation occur, a consistent level of performance has been difficult to maintain.

A higher inventionINDEX Score and a corresponding higher rating, such as the A+ achieved in July 2025 and October 2024, are strong indicators of a vibrant and healthy innovation ecosystem. A high score suggests a surge in new patents, technologies, and creative solutions, which often correlates with increased economic activity and job creation. This can attract new businesses and investors, as it signals a fertile ground for growth and development. A strong rating enhances a region’s reputation, solidifying its position as a leader in technological and economic advancement, and can lead to a more competitive and resilient economy.

Conversely, a lower score, like the 0.89% in August 2024 (D+) or the 0.43% in July 2023 (F), points to a potential slowdown in inventive output. Such a decline may indicate challenges in funding, a decrease in research and development efforts, or a shift in market focus. The negative implications of a lower score extend beyond a simple number; they can signal a less dynamic economy, which may struggle to compete with other regions for talent and investment. A prolonged period of low scores could damage a region’s professional reputation and hinder its long-term economic prospects.

In conclusion, the historical data for the inventionINDEX Score highlights the importance of sustained innovation. While high scores indicate periods of exceptional growth and positive economic outcomes, the fluctuations in the data underscore the need for consistent and strategic support for the innovation community. To ensure a robust and thriving future, maintaining a consistently high score is crucial, as it builds a foundation for economic stability and continued prosperity.

Discussion:

In August, the Illinois inventionINDEX scored a positive sentiment which was lower than the previous year’s average and underperformed 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 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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