DELAWARE INVENTIONINDEX | SEPTEMBER 2025

September 2025: 1.17% (C+ grade)

Delaware inventionINDEX September 2025: 1.17% (C+ 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).

Delaware inventionINDEX Scores – Last 12 months

The Delaware inventionINDEX for September 2025 stands at 1.17%, earning a C+ grade. This score is consistent with the previous September’s rating of 1.17% in 2024, indicating a stable performance year-over-year at this specific point. However, when examining the broader trend of the last 12 months, the September 2025 score is lower than the average for that period, suggesting a slight underperformance relative to recent historical data. This places it within a downward trend observed over the past year.

A higher inventionINDEX grade, such as the A+ achieved in April 2025 with 2.03% or the A grades in October 2023 and August 2023, signifies robust innovation output. These periods likely correspond to stronger economic growth and increased patent production, which are positive indicators for a state’s economic vitality and its capacity for recovery from economic challenges. Such scores reflect a healthy environment for research and development, attracting investment and fostering a dynamic business landscape.

Conversely, a lower inventionINDEX grade, particularly those falling below a C, signals a negative outlook or sentiment. For instance, the F grades observed in April 2023 (0.19%), March 2023 (0.10%), June 2022 (0.40%), April 2022 (0.18%), February 2022 (0.38%), January 2022 (0.35%), and December 2021 (-0.13%) indicate periods of significantly reduced innovation. These lower scores suggest potential weaknesses in economic recovery, possibly due to factors such as company closures, reduced workforces, or limited R\&D capabilities, which can hinder long-term economic resilience.

Observing these trends over time allows for a deeper understanding of Delaware’s economic health and its innovative capacity. While the current C+ grade for September 2025 is a positive sentiment, the broader downward trend over the past year highlights the importance of continuous monitoring. Understanding these fluctuations helps in predicting which states are better positioned for economic recovery and sustained growth, emphasizing the critical role of innovation in navigating economic shifts.

Discussion:

In September, the Delaware 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 Delaware office provides R&D tax credit consulting and advisory services to Wilmington, Dover, Newark, Middletown and Smyrna.

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.