VERMONT INVENTIONINDEX | OCTOBER 2025
October 2025: 1.00% (C- grade)
Vermont inventionINDEX October 2025: 1.00% (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).
Vermont inventionINDEX Scores – Last 12 months
| Month | inventionINDEX Score |
| October 2025 | 1.00% |
| Sep 25 | 1.47% |
| Aug 25 | 1.47% |
| Jul 25 | 1.47% |
| Jun 25 | 1.33% |
| May 25 | 1.60% |
| Apr 25 | 1.13% |
| Mar 25 | 1.53% |
| Feb 25 | 1.73% |
| Jan 25 | 2.00% |
| Dec 24 | 1.80% |
| Nov 24 | 0.80% |
| Oct 24 | 1.67% |
The Vermont inventionINDEX for October 2025 registered a score of 1.00%, corresponding to a C- grade. This marks a notable decrease from the previous month’s A+ rating of 1.47% and falls below the average performance observed over the preceding year. This recent decline suggests a shift towards a negative sentiment in innovation output for the state, indicating a potential slowdown in economic recovery and growth as measured by the inventionINDEX methodology.
A higher inventionINDEX score, typically reflected by grades above C, signifies robust innovation output, correlating with stronger GDP growth relative to patent production. Such positive sentiment suggests a dynamic economic environment where new ideas are actively being developed and commercialized, fostering job creation and long-term prosperity. States consistently achieving higher grades are generally better positioned to navigate economic challenges and experience sustained growth.
Conversely, a lower inventionINDEX score, such as the C- grade in October 2025, implies a subdued innovation landscape. This negative outlook can indicate a deceleration in the pace of new patent generation compared to economic growth, potentially signaling underlying issues such as reduced investment in research and development, workforce limitations, or lingering economic disruptions. These factors can collectively hinder a state’s ability to innovate and adapt, thereby impacting its economic resilience and future growth prospects.
Observing trends over time, the current October 2025 score of 1.00% (C- grade) is a concern, as it is lower than the previous year’s average and continues a downward trend experienced in the prior 12 months. This consistent decline suggests that the factors impacting innovation output, possibly including the lingering consequences of the pandemic on company operations and R\&D capabilities, warrant close monitoring. Understanding these trends is crucial for predicting economic recovery and implementing strategies to foster a more innovative environment.
Discussion:
In October, the Vermont inventionINDEX scored a negative 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 Vermont office provides R&D tax credit consulting and advisory services to Burlington, South Burlington, Rutland, Barre, and Montpelier.
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.
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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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