IOWA INVENTIONINDEX | NOVEMBER 2025
November 2025: 1.61% (A+ grade)
Iowa inventionINDEX November 2025: 1.61% (A+ 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).
Iowa inventionINDEX Scores – Last 12 months
| Month | inventionINDEX Score |
| November 2025 | 1.61% |
| Oct 25 | 1.54% |
| Sep 25 | 1.48% |
| Aug 25 | 1.15% |
| Jul 25 | 1.71% |
| Jun 25 | 1.61% |
| May 25 | 1.50% |
| Apr 25 | 1.96% |
| Mar 25 | 1.24% |
| Feb 25 | 1.28% |
| Jan 25 | 1.10% |
| Dec 24 | 1.27% |
| Nov 24 | 1.19% |
The historical table for the inventionINDEX reveals a positive shift in performance for the most recent period. Over the full 60-month span, the inventionINDEX maintained an average score of 1.28%. However, the last 12 months show a marked acceleration, with the average score rising to 1.45%. This recent performance is highlighted by a cluster of {A+} ratings, including the all-time peak of 1.96 recorded in April 2025. These scores demonstrate a current period of elevated output and suggest that recent strategies or market conditions have fostered an environment conducive to high-grade inventive activity, consistently placing performance above the long-term baseline.
The score’s volatility over the five-year period should be noted, as the range spans from a low of 0.88 {D+} in July 2022 to the aforementioned high of 1.96 {A+}. While the historical average provides a stable measure, the significant deviation between the minimum and maximum scores indicates that performance is not uniform and is subject to sharp shifts. This variability underscores the importance of the recent upward trend, as it suggests the system has overcome periods of lower productivity and achieved a sustained level of success that greatly surpasses the historical mean.
The positive outcomes associated with a higher inventionINDEX Score and Rating, particularly an {A+} grade, are substantial. A high score signals a dynamic and vibrant innovation ecosystem, which is crucial for attracting external investment and capital, as it indicates a fertile environment for new technological and business development. Furthermore, strong performance enhances the region’s national and global reputation, making it a more desirable location for highly skilled talent. The elevated grade provides external validation for current innovation policies and justifies the continued strategic allocation of resources.
Conversely, a sustained or precipitous drop in the inventionINDEX score carries serious negative implications for the local economy. Lower scores, particularly those dipping into the {C} or {D} range, imply stagnation or a competitive decline in innovative output. This can lead directly to an out-migration of both capital and high-value talent, as investors and skilled professionals naturally gravitate toward more dynamic markets. Such a scenario demands immediate and thorough analysis of current programs to identify and resolve systemic barriers to invention and to re-establish the conditions necessary for competitive, high-grade performance.
Discussion:
In November, the Iowa inventionINDEX scored a positive sentiment which was higher than the previous year’s average but 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 Iowa office provides R&D tax credit consulting and advisory services to Des Moines, Cedar Rapids, Davenport, Sioux City, Iowa City, Waterloo, West Des Moines, Ames, Council Bluffs and Dubuque.
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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