MICHIGAN INVENTIONINDEX | NOVEMBER 2025

November 2025: 1.30% (C+ grade)

Michigan inventionINDEX November 2025: 1.30% (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).

Michigan inventionINDEX Scores – Last 12 months

The Michigan inventionINDEX reached a score of 1.30% with a C+ rating in November 2025, maintaining a position of relative stability compared to the fluctuations observed over the last sixty months. This current standing is a slight decrease from the 1.46% recorded in October 2025 and sits well below the historical highs seen in late 2023 and late 2024. When viewed against the five-year trajectory, the index is currently in a moderate phase, avoiding the severe volatility of previous years while lacking the aggressive growth seen during peak innovation cycles. The data suggests that while the index is performing within a predictable range, it has yet to reclaim the momentum that drove it to its highest recorded levels.

A higher grade on the Michigan inventionINDEX, such as the A+ ratings achieved in September 2023 at 3.09% and October 2024 at 2.97%, brings several positive outcomes for the regional innovation ecosystem. These elevated scores reflect periods of high-quality output and strong market confidence, indicating that new ideas are effectively navigating the path from concept to commercial viability. When the index reaches these upper echelons, it typically signals a surge in successful patent filings and increased interest from institutional investors. Such high performance fosters a robust environment that attracts top-tier talent and encourages corporate partnerships, ultimately driving long-term economic growth and technological advancement.

Conversely, a lower score on the index carries significant negative implications for the state of innovation. The historical record highlights moments of concern, such as the July 2023 score of -0.11% which resulted in an F rating, and the 0.21% score in October 2023. These dips into the D and F categories often point to systemic hurdles, such as reduced funding availability or a lack of institutional support for emerging inventors. A persistent low score can discourage risk-taking among entrepreneurs and lead to a stagnation in the development of new intellectual property. Furthermore, these periods of underperformance may result in a brain drain, as creative professionals seek more supportive environments to cultivate their inventions.

In summary, the sixty-month history of the Michigan inventionINDEX illustrates a resilient but cyclical landscape. The current C+ rating for November 2025 serves as a baseline that reflects a stable innovation climate, yet it highlights the distance between current performance and the record-breaking peaks of the past. To return to the A-range scores that defined the more prosperous periods in 2023 and 2024, there must be a focus on the factors that facilitate high-level creative output and market readiness. By carefully monitoring these trends, stakeholders can better understand the underlying health of the invention sector and implement strategies to ensure consistent, high-tier performance in the years to come.

Discussion:

In November, the Michigan 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 Michigan office provides R&D tax credit consulting and advisory services to Detroit, Grand Rapids, Warren, Sterling Heights, Ann Arbor, Lansing, Flint, Dearborn, Livonia, Troy, Westland, Farmington Hills, Kalamazoo, Wyoming, Rochester Hills, Southfield, Taylor, Pontiac, St Clair Shores and Royal Oak.

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.