TEXAS INVENTIONINDEX | NOVEMBER 2025
November 2025: 1.17% (B+ grade)
Texas inventionINDEX November 2025: 1.17% (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).
Texas inventionINDEX Scores – Last 12 months
| Month | inventionINDEX Score |
| November 2025 | 1.17% |
| Oct 25 | 1.15% |
| Sep 25 | 1.23% |
| Aug 25 | 1.13% |
| Jul 25 | 1.27% |
| Jun 25 | 1.14% |
| May 25 | 1.18% |
| Apr 25 | 1.22% |
| Mar 25 | 1.10% |
| Feb 25 | 1.15% |
| Jan 25 | 1.27% |
| Dec 24 | 1.16% |
| Nov 24 | 1.10% |
The Texas inventionINDEX currently stands at 1.17% for November 2025, yielding a B+ rating. While this represents a modest improvement from the 1.15% observed in the preceding month, it remains slightly below the five-year historical average of approximately 1.21%. This current positioning suggests a period of stable but cautious innovation activity within the region. When compared to the January 2025 peak of 1.27%, the current score indicates a contraction in high-level inventive output, although it maintains a healthy lead over the multi-year low of 1.04% recorded in October 2021.
Analyzing the broader 60-month horizon reveals significant fluctuations and distinct cycles of productivity. The index achieved its highest watermark of 1.48% in August 2023, a period characterized by an exceptional volume of A+ ratings. Throughout the last five years, the index has frequently oscillated between the B and A+ categories, with A+ ratings occurring 16 times, indicating a robust baseline for intellectual property development. However, the data also highlights periods of volatility, such as the drop to 1.06% in July 2023 and April 2023, demonstrating that while the long-term trend remains positive, the pace of invention is subject to periodic recalibrations.
A higher inventionINDEX score serves as a critical indicator of economic vitality and competitive advantage. When the score reaches the A+ threshold, typically above 1.30%, it reflects an environment where research and development are yielding tangible results. These peak periods foster an ecosystem that attracts venture capital, encourages talent retention, and drives the commercialization of new technologies. A superior rating implies that the state is effectively converting intellectual capital into industrial progress, which ultimately strengthens the local economy and provides a hedge against national market downturns.
Conversely, a lower score or a sustained decline toward the C range presents significant implications for the regional innovation landscape. A dip in the index, such as the 1.04% recorded in late 2021, signals a potential stagnation in the pipeline of new ideas or a shift in focus away from long-term developmental projects. Such downturns can lead to reduced investor confidence and a slower rate of industrial modernization. Maintaining a score above the historical mean is therefore essential to ensure that the region does not lose momentum to more aggressive markets. Continuous monitoring of these metrics is vital for identifying these shifts early and implementing strategies to bolster the inventive infrastructure.
Discussion:
In November, the Texas inventionINDEX scored a positive sentiment which was lower than the previous year’s average and underperformed the downward trend for the year. This is in contrast 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 Texas office provides R&D tax credit consulting and advisory services to Houston, San Antonio, Dallas, Austin, Fort Worth, El Paso, Arlington, Corpus Christi, Plano, Laredo, Lubbock, Garland, Irving, Amarillo, Grand Prairie, Brownsville, McKinney, Frisco, Pasadena and Mesquite.
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.
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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.
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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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