RHODE ISLAND INVENTIONINDEX | NOVEMBER 2025

November 2025: 2.10% (A grade)

Rhode Island inventionINDEX November 2025: 2.10% (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).

Rhode Island inventionINDEX Scores – Last 12 months

The historical performance of the Rhode Island inventionINDEX over the past 60 months reveals a landscape of notable volatility, characterized by sharp peaks of innovation and periodic corrections. As of November 2025, the index stands at 2.10% with an “A” rating, reflecting a solid standing that remains well above the neutral “C” threshold. While this latest figure is a healthy indicator of current sentiment, it represents a stabilization following the higher “A+” surges seen earlier in the autumn of 2025. When viewed against the broader five-year horizon, the current score remains competitive, especially when contrasted with the deeper troughs of 2022 where scores frequently dipped below 1.00% and earned “C-” or “D+” ratings.

Higher grades within this index, such as the 2.93% and 2.51% marks achieved in late 2025, signal a robust alignment between the state’s economic growth and its intellectual property output. These “A” and “A+” ratings suggest that Rhode Island is effectively translating its economic activity into tangible innovation, such as new patents and research breakthroughs. A higher score typically correlates with increased investor confidence and a more fertile environment for high-tech industries. This positive momentum often leads to greater economic resilience, allowing the state to recover more swiftly from external market shocks and fostering a culture of long-term research and development.

Conversely, lower scores and grades carry more sobering implications for the local economy. When the index falls toward a “C” rating or lower, as seen in June 2022 at 0.84%, it often indicates that patent production is failing to keep pace with broader GDP growth. Such a disconnect can be a precursor to economic stagnation, suggesting that the state may be losing its competitive edge in the innovation sector. Lower grades often reflect underlying challenges such as reduced R&D spending, company closures, or a shrinking specialized workforce. If these downward trends persist, they can lead to a “negative outlook” sentiment, making it harder for the state to attract the venture capital necessary for future growth.

Ultimately, the 60-month trajectory illustrates that Rhode Island possesses the capacity for elite-level innovation, as evidenced by the recurring “A+” peaks that have reached as high as 3.77%. The challenge for the state lies in maintaining the consistency of these high-performing periods and minimizing the duration of the “C” and “D” cycles. By monitoring these fluctuations, stakeholders can better predict economic shifts and identify the specific periods where the state’s innovation engine requires additional support. The current trend heading into late 2025 suggests a stabilizing environment that, while off its recent highs, remains firmly positioned in a favorable “A” grade territory.

Discussion:

In November, the Rhode Island inventionINDEX scored a positive sentiment which was higher than the previous year’s average but underperformed the upward trend for the year. This is similar to the prior 12 months, which experienced an 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 Rhode Island office provides R&D tax credit consulting and advisory services to Providence, Warwick, Cranston, Pawtucket, and East Providence.

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.