MISSISSIPPI INVENTIONINDEX | AUGUST 2025

August 2025: 0.68% (F grade)

Mississippi inventionINDEX August 2025: 0.68% (F 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).

Mississippi inventionINDEX Scores – Last 12 months

The Mississippi inventionINDEX for August 2025 stands at 0.68%, receiving an F grade. This score indicates a negative sentiment, falling below the threshold for positive outlook which begins at a C grade or higher. Compared to the previous month, July 2025, which also recorded 0.68% and an F grade, there has been no change in the state’s innovation output measurement. Looking back over the last 12 months, this August 2025 score is also lower than the average from the prior year, suggesting a continued trend of subdued innovation performance.

A higher inventionINDEX score and a better grade signify stronger innovation output, which can be a key indicator of economic vitality. States or regions with consistently higher grades, such as those reaching B or A+, demonstrate a robust environment where GDP growth is aligned with or exceeds patent production growth. This positive sentiment can attract investment, foster business expansion, and lead to job creation. Ultimately, a strong inventionINDEX suggests a resilient economy capable of adapting and thriving through various economic cycles, including post-pandemic recovery.

Conversely, a lower inventionINDEX score and a poor grade, such as the current F grade, reflect a weaker innovation landscape. This negative outlook suggests that patent production growth is not keeping pace with GDP growth, or perhaps both are stagnant. Such a scenario can signal underlying challenges in research and development capabilities, potentially due to factors like company closures, reduced workforces, or limited R&D investment. These factors can hinder economic recovery and long-term growth, making the state less attractive for new businesses and potentially leading to a slower rebound from economic disruptions.

Observing the historical data for the past 60 months reveals fluctuations in Mississippi’s inventionINDEX, with periods of higher performance, including multiple instances of B, A-, and A+ grades. These past higher scores highlight periods of more robust innovation. The current consistent F grades for August, July, and June 2025 indicate a recent downturn in this metric, which warrants careful consideration for its potential implications on the state’s economic trajectory and its ability to foster future growth through innovation.

Discussion:

In August, the Mississippi inventionINDEX scored a negative sentiment which was lower than the previous year’s average but outperformed the downward trend for the year. This is similar 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 Mississippi office provides R&D tax credit consulting and advisory services to Jackson, Gulfport, Southaven, Hattiesburg, Biloxi, Meridian, Tupelo, Greenville, Olive Branch, and Horn Lake.

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.