NORTH DAKOTA INVENTIONINDEX | NOVEMBER 2025

November 2025: 1.04% (B grade)

North Dakota inventionINDEX November 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 concluded November 2025 with a score of 1.04% and a corresponding B rating, marking a period of moderate performance within the sixty-month historical window. This current metric reflects a slight decrease from the five-year average of approximately 1.08% and follows a significant peak of 1.23% recorded just two months prior in September 2025. While the recent dip suggests a cooling period, the index remains significantly higher than the historical low of 0.96% observed in October 2022. This positioning indicates that while the state is not currently at its absolute peak, it maintains a healthy distance from previous troughs.

A longitudinal review of the data reveals a pattern of frequent high-level achievement interspersed with brief periods of correction. The index has reached the prestigious A+ rating twenty-one times over the last five years, demonstrating a strong capacity for top-tier innovation performance. Notable peaks in August 2023 and September 2025 show that North Dakota possesses the structural capability to reach scores as high as 1.23%. Comparing the current 1.04% to the broader timeline, it is evident that the state often experiences these mid-range B ratings as a baseline before climbing back into the A-range categories.

Achieving higher grades, particularly in the A and A+ categories, brings substantial benefits to the state’s economic and creative landscape. These elevated scores typically signify a period of intense intellectual activity, characterized by a rise in patent filings, successful research grants, and a flourishing startup ecosystem. A high inventionINDEX score serves as a powerful signal to investors and talent, suggesting that the environment is ripe for technological advancement and commercial success. These periods of excellence help to build a reputation for innovation that can attract further development and enhance the state’s overall competitive standing on a national level.

In contrast, a downward shift toward lower ratings like C or D carries several negative implications for the regional economy. Scores dropping below the 1.00% mark, as seen in early 2022 and late 2022, often indicate a stagnation in creative output or a lack of necessary support for the inventor community. Such declines can lead to a loss of momentum in critical industries, potentially causing a brain drain as innovators seek more supportive environments elsewhere. Furthermore, sustained lower scores may discourage future investment and slow the pace of economic diversification, making it vital for stakeholders to monitor these trends and implement strategies that prevent the index from falling into these lower-tier brackets.

Discussion:

In November, 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 similar to the prior 12 months, which experienced a slight upward 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.