OHIO INVENTIONINDEX | AUGUST 2025

August 2025: 1.82% (B- grade)

Ohio inventionINDEX August 2025: 1.82% (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).

Ohio inventionINDEX Scores – Last 12 months

The Ohio inventionINDEX for August 2025 stands at 1.82%, earning a B- grade. This figure represents a decrease from the previous month’s strong A+ grade of 3.83% in July 2025. When examining the preceding 12 months, the August 2025 score is lower than the average and indicates a deviation from what has generally been an upward trend within that specific timeframe. This suggests a slight cooling in innovation output for the most recent month compared to immediate prior performance and recent overall trajectory.

Comparing the current score to the broader 60-month historical data reveals a more nuanced picture. While a B- grade is considered positive sentiment (anything over C grade), it falls short of the higher A and A+ ratings frequently observed throughout the five-year period. Many months have seen scores well above 2.5%, with several reaching over 4%, indicating periods of robust innovation. The current B- grade, while not negative, suggests that the pace of innovation output in Ohio for August 2025 is not at its peak historical levels.

A consistently higher inventionINDEX score and a favorable grade, such as an A or B, signals strong innovation output, which is a significant positive indicator for economic recovery and growth. High scores suggest that GDP growth is outpacing patent production growth, or that patent production is robust, reflecting a dynamic and inventive economic environment. This sentiment can attract investment, foster business expansion, and lead to job creation, contributing to overall economic resilience and prosperity. It demonstrates a state’s capacity for ingenuity and its ability to adapt and thrive.

Conversely, a lower inventionINDEX score and a grade below C imply negative sentiment regarding innovation output. This could indicate stagnation or a decline in inventive activity relative to economic growth, or even a contraction in patenting efforts. Such trends may signal underlying economic challenges, potentially impacting future competitiveness and recovery. A sustained period of lower scores could deter investment and hinder economic progress, emphasizing the critical role of innovation in a robust economy.

Discussion:

In August, the Ohio inventionINDEX scored a positive 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 Ohio office provides R&D tax credit consulting and advisory services to Columbus, Cleveland, Cincinnati, Toledo, Akron, Dayton, Parma, Canton, Youngstown, Lorain, Hamilton, Springfield, Kettering, Elyria, Lakewood, Cuyahoga Falls, Middletown, Euclid, Newark and Mansfield.

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.