NEW YORK INVENTIONINDEX | AUGUST 2025

August 2025: 0.90% (D+ grade)

New York inventionINDEX August 2025: 0.90% (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).

New York inventionINDEX Scores – Last 12 months

The New York inventionINDEX for August 2025 stands at 0.90%, earning a D+ grade. This places it lower than the immediately preceding month of July 2025, which saw a score of 1.05% and a C grade. Examining the past year, the current score is also notably lower than the October 2024 peak of 1.24% (B-) and the April 2024 high of 1.28% (B). This suggests a recent downward trend in innovation output for New York, particularly when compared to its stronger performance in late 2024 and early 2025.

A higher inventionINDEX score and a better grade are indicative of robust innovation output, correlating with strong economic growth and potentially a swift recovery from economic downturns. States or countries with consistently higher inventionINDEX ratings, particularly those consistently achieving C grade or above, demonstrate a healthy environment for patent production relative to their GDP growth. This positive sentiment can attract investment, foster new industries, and contribute to long-term economic stability and prosperity. Such a climate often signifies flourishing research and development, a dynamic workforce, and a supportive ecosystem for new ideas and technological advancements.

Conversely, a lower inventionINDEX score and a grade below C, as observed in New York’s August 2025 rating, signal a negative outlook or sentiment regarding innovation. This can imply a slowdown in patent production relative to GDP growth, potentially indicating challenges in research and development, reduced investment in innovative endeavors, or hurdles in bringing new ideas to market. Sustained lower scores may lead to diminished economic competitiveness, slower job creation, and a less resilient economy in the face of economic pressures. It suggests areas where innovation efforts might be stagnating or facing headwinds.

Observing the historical data, periods of higher inventionINDEX scores, such as August 2023 with an A grade (1.57%) or March 2021 and November 2020 with A+ grades (1.70% and 1.68% respectively), represent times of strong innovative momentum for New York. The current August 2025 D+ grade of 0.90% indicates a notable shift from these past highs and falls into the negative sentiment category. Understanding these fluctuations is crucial for policymakers and businesses to identify areas requiring strategic intervention and to foster an environment conducive to sustained innovation and economic growth.

Discussion:

In August, the New York inventionINDEX scored a negative sentiment which was lower than the previous year’s average and underperformed the downward trend for the year. This is in contrast to the prior 12 months, which experienced a slight 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 New York office provides R&D tax credit consulting and advisory services to New York City, Buffalo, Rochester, Yonkers, Syracuse, Albany, New Rochelle, Mount Vernon, Schenectady, Utica, White Plains, Troy, Niagara Falls, Binghamton, Rome, Long Beach, Poughkeepsie, North Tonawanda, Jamestown and Ithaca.

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. 

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