FEDERAL INVENTIONINDEX | NOVEMBER 2025

November 2025: 1.37% (B- grade)

Federal inventionINDEX November 2025: 1.37% (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).

Federal inventionINDEX Scores – Last 12 months

The inventionINDEX data for November 2025 indicates a period of relative stability with a score of 1.37 percent and a rating of B-. This represents a marginal improvement from October 2025, which sat at 1.35 percent, yet it remains significantly lower than the highs observed earlier in the five-year cycle. When viewed against the broader historical context of the last 60 months, the current score suggests the index is currently resting in a lower-middle tier. This performance follows a volatile 2024 and 2023, where scores frequently breached the 1.70 percent mark, signaling that the federal invention landscape is presently in a consolidation phase rather than a period of rapid expansion.

A detailed comparison with historical benchmarks reveals that the index is well below its five-year peak of 2.31 percent achieved in October 2023. Throughout 2023 and the beginning of 2024, the index frequently reached A and A+ ratings, driven by scores exceeding 2.00 percent. However, the 2025 calendar year has seen a consistent leveling off, with scores hovering between 1.32 percent and 1.95 percent. While current figures are stronger than the historical floor of 1.18 percent recorded in January 2022, the lack of an upward trajectory toward the 2.00 percent threshold suggests that the momentum seen during the 2023 peak has dissipated, leaving the current environment characterized by steady but modest output.

The attainment of a higher grade, such as an A or A+, yields significant positive outcomes for the federal invention ecosystem. Higher scores typically correlate with a robust surge in research and development efficiency, a higher volume of patentable breakthroughs, and a proactive approach to technological advancement. When the index rises above 1.80 percent, it indicates an environment where innovation is prioritized and resource allocation is yielding high-impact results. These peak periods foster national competitiveness and signal to stakeholders that the federal infrastructure is operating at peak intellectual capacity, paving the way for long-term economic and scientific growth.

Conversely, a lower score or a downward trend in ratings carries negative implications for the broader innovation strategy. Ratings in the B- to C+ range, such as those seen in late 2024 and throughout much of 2021 and 2022, often reflect periods of stagnation, bureaucratic friction, or reduced investment in emerging technologies. A lower score suggests that the pace of invention is failing to keep up with historical potential, which can lead to a loss of competitive advantage in global markets. Maintaining a trajectory toward higher ratings is essential to ensure that the federal invention framework does not fall into a state of inertia, as consistent performance below the 1.50 percent mark may indicate a need for systemic reform or increased strategic support.

Discussion:

In November, the Federal inventionINDEX scored a positive sentiment which was lower than the previous year’s average and underperformed the downward trend for the year. This is similar 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.

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.