NORTH DAKOTA INVENTIONINDEX | OCTOBER 2025

October 2025: 1.04% (B grade)

North Dakota inventionINDEX October 2025: 1.04% (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).

North Dakota inventionINDEX Scores – Last 12 months

The North Dakota inventionINDEX for October 2025 stands at 1.04%, earning a ‘B’ grade. This score, while indicating a positive sentiment, is notably lower than the previous month’s ‘A+’ grade of 1.23% in September 2025 and falls below the average of the preceding year. This suggests a slight deceleration in innovation output for the state, contrasting with a generally upward trend observed earlier in the year. A ‘B’ grade, however, still signifies a healthy level of innovation, aligning with the understanding that anything above a ‘C’ grade represents positive sentiment and a favorable economic outlook.

A higher inventionINDEX grade, such as the ‘A+’ ratings seen frequently throughout the historical data, reflects robust innovation output, which is a critical driver for economic growth and resilience. These periods of elevated scores suggest a thriving environment for patent production and GDP growth, indicating that the state is well-positioned for economic recovery and sustained prosperity. Such positive trends attract investment, foster job creation, and enhance overall economic stability, allowing North Dakota to navigate potential economic challenges more effectively.

Conversely, a lower score, like the ‘D’ grade of 0.96% observed in October 2022, signals a contraction in innovation activity. This can have negative implications, potentially indicating a slowdown in economic dynamism. Factors contributing to such declines could include reduced research and development capabilities, company closures, or a decrease in new patent applications. These trends, if sustained, could hinder economic recovery and make the state more vulnerable to adverse economic incidents.

Analyzing the historical data, while October 2025’s ‘B’ grade is positive, it marks a slight dip compared to the stronger ‘A+’ grades seen in many preceding months, including September 2025, July 2025, May 2025, and consistently in late 2024 and early 2025. This indicates a need to monitor the factors influencing innovation output to ensure that North Dakota maintains its positive momentum. Sustaining grades above ‘C’ is crucial for a continued positive economic outlook and the state’s ability to adapt and thrive in an evolving economic landscape.

Discussion:

In October, the North Dakota 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 North Dakota office provides R&D tax credit consulting and advisory services to Fargo, Bismarck, Grand Forks, Minot, and West Fargo.

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.