ILLINOIS INVENTIONINDEX | OCTOBER 2025
October 2025: 0.98% (C- grade)
Illinois inventionINDEX October 2025: 0.98% (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).
Illinois inventionINDEX Scores – Last 12 months
| Month | inventionINDEX Score |
| October 2025 | 0.98% |
| Sep 25 | 1.39% |
| Aug 25 | 1.22% |
| Jul 25 | 1.75% |
| Jun 25 | 1.02% |
| May 25 | 1.34% |
| Apr 25 | 1.69% |
| Mar 25 | 1.05% |
| Feb 25 | 1.19% |
| Jan 25 | 1.33% |
| Dec 24 | 1.52% |
| Nov 24 | 1.10% |
| Oct 24 | 1.95% |
The Illinois inventionINDEX for October 2025, at 0.98% with a C- grade, indicates a negative sentiment. This score is notably lower than the previous month’s B grade of 1.39% in September 2025, and also falls below the average of the last 12 months. When examining the historical data, October 2025’s performance stands in contrast to the more robust scores seen in earlier periods, such as the A+ grades of 1.75% in July 2025 and 1.95% in October 2024. This recent decline suggests a potential shift in the state’s innovation output compared to its immediate past.
A higher inventionINDEX score and a corresponding positive grade (above C) signify a healthy and growing innovation ecosystem. For instance, the A+ grade of 3.00% in October 2023 represents a period where GDP growth outpaced patent production growth significantly, indicating strong economic recovery potential and a vibrant environment for new ideas and technologies. Such positive trends attract investment, foster job creation, and enhance overall economic resilience, particularly in navigating post-pandemic challenges or other economic fluctuations. These higher grades reflect a dynamic and productive landscape for inventors and businesses alike.
Conversely, a lower inventionINDEX score, like the C- grade in October 2025 or the F grades in July 2023 (0.43%) and September 2021 (0.57%), signals a contraction or stagnation in innovation. This can have several negative implications. A declining score may suggest reduced research and development activities, fewer patent applications, and a slower pace of economic diversification. Over time, persistently low scores could deter potential investors, hinder technological advancements, and ultimately impact the state’s long-term economic competitiveness and ability to adapt to evolving market demands.
Analyzing the 60-month historical data reveals fluctuations, with periods of strong performance interspersed with dips. While the overall trend shows resilience, the recent C- grade for October 2025 warrants attention. Understanding the factors contributing to these shifts, such as economic conditions, policy changes, or industry-specific dynamics, is crucial for fostering a consistently positive innovation environment. Maintaining a focus on initiatives that stimulate patent production and economic growth will be key to improving future inventionINDEX scores and ensuring Illinois remains a hub for innovation.
Discussion:
In October, the Illinois inventionINDEX scored a negative 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 Illinois office provides R&D tax credit consulting and advisory services to Chicago, Aurora, Rockford, Joliet, Naperville, Springfield, Peoria, Elgin, Waukegan, Champaign, Bloomington, Decatur, Evanston, Des Plaines, Berwyn, Wheaton, Carbondale, Mount Prospect, Oak Lawn and Skokie.
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What is the R&D Tax Credit?
The Research & Experimentation Tax Credit (or R&D Tax Credit), is a general business tax credit under Internal Revenue Code section 41 for companies that incur research and development (R&D) costs in the United States. The credits are a tax incentive for performing qualified research in the United States, resulting in a credit to a tax return. For the first three years of R&D claims, 6% of the total qualified research expenses (QRE) form the gross credit. In the 4th year of claims and beyond, a base amount is calculated, and an adjusted expense line is multiplied times 14%. Click here to learn more.
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