LOUISIANA INVENTIONINDEX | SEPTEMBER 2025

September 2025: 1.29% (B grade)

Louisiana inventionINDEX September 2025: 1.29% (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).

Louisiana inventionINDEX Scores – Last 12 months

The Louisiana inventionINDEX for September 2025 stands at 1.29%, earning a B grade. This score indicates a positive sentiment for the state’s innovation output, which measures GDP growth against patent production growth. While this particular September score is consistent with the previous month, August 2025, and higher than some recent months like May 2025 (1.03%, C grade) and September 2024 (0.92%, C- grade), it is notably lower than the October 2024 peak of 2.40% (A+ grade) and the October 2023 peak of 3.45% (A+ grade). Observing these trends allows for a comprehensive understanding of Louisiana’s economic recovery potential.

A higher inventionINDEX score and a corresponding higher grade, such as an A or B, signify robust innovation and economic health. A strong performance suggests that the state is effectively fostering an environment where patent production and GDP growth are in positive alignment. This can lead to increased investment, job creation, and overall economic resilience. Such positive sentiment indicates that Louisiana is well-positioned to navigate economic fluctuations and capitalize on new opportunities, potentially accelerating its recovery from past economic incidents.

Conversely, a lower inventionINDEX score, particularly those falling into the C or D grades, signals a weaker innovation output and could imply potential economic challenges. A declining trend or consistently low scores suggest that the state’s patent production is not keeping pace with its GDP growth, or that both are experiencing stagnation. This can have negative implications, including reduced investor confidence, slower economic growth, and a diminished capacity to adapt to evolving market conditions. It highlights areas where strategic interventions might be necessary to stimulate innovation and bolster economic performance.

Analyzing the historical data, while September 2025 maintains a positive B grade, the broader trend over the last 60 months shows periods of both strong performance and more modest outcomes. For instance, the significant A+ grades in October 2023 and October 2024 demonstrate periods of exceptional innovation. However, there have also been instances of C and D grades, indicating fluctuations in the state’s innovation output. Understanding these historical patterns is crucial for assessing long-term economic trajectories and informing strategies aimed at sustaining positive innovation momentum in Louisiana.

Discussion:

In September, the Louisiana inventionINDEX scored a positive 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 considerable 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 Louisiana office provides R&D tax credit consulting and advisory services to New Orleans, Baton Rouge, Shreveport, Lafayette, Lake Charles, Kenner, Bossier City, Monroe, Alexandria and Houma.

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.