CONNECTICUT INVENTIONINDEX | DECEMBER 2025

December 2025: 0.99% (C- grade)

Connecticut inventionINDEX December 2025: 0.99% (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).

Connecticut inventionINDEX Scores – Last 12 months

The Connecticut inventionINDEX, which measures innovation output by comparing GDP growth with patent production growth, has exhibited significant volatility over the past five years. As of December 2025, the index stands at 0.99% with a C- rating, reflecting a cautious but stable sentiment compared to the sharper declines seen in previous months. When examining the 60-month horizon, it is evident that the state has struggled to regain the robust momentum of 2021, a year characterized by high-water marks such as the 1.24% (A-) peak in March. While the recent December score is an improvement over the 0.88% (D) and 0.87% (D) ratings from November and October 2025, the broader trend suggests a cooling period for the regional innovation landscape.

High grades within the inventionINDEX, specifically those in the A and B ranges, signal a flourishing environment for intellectual property development and entrepreneurial activity. A higher score typically correlates with increased venture capital investment and a surge in patent filings, creating a more dynamic labor market for high-tech professionals. During periods of elevated performance, such as August 2023 (1.15%, B) or August 2021 (1.19%, B+), the local ecosystem effectively converts research and development efforts into tangible economic assets. This success often attracts top-tier talent and further funding, fostering a virtuous cycle that enhances the global competitiveness of the state and provides a predictable, stable climate for business growth.

Conversely, lower scores and grades under a C rating represent a negative outlook that may impact long-term economic health. The persistent D-range ratings observed throughout much of 2025 suggest a potential breakdown in the pipeline from initial concept to commercialization. Negative implications of a lower score include a decrease in business formation and a more cautious approach to research projects. Furthermore, a prolonged dip in the index often indicates that the infrastructure for innovation is underperforming, which can lead to a loss of skilled researchers and engineers who may seek opportunities in more vibrant markets. The economic impact is felt through a reduced rate of innovation, potentially leading to stagnation in productivity and a weakened ability to recover from market shifts.

Ultimately, the historical data illustrates that the Connecticut innovation climate is capable of rapid recovery despite current periods of inactivity. The fluctuations between the F rating in November 2024 and the B- rating in July 2025 demonstrate that targeted support and strategic investment in key drivers, such as R&D tax credits and workforce development, remain essential. By maintaining a focus on converting inventive perception into industrial output, the state can bridge the gap between its creative potential and its economic reality. Monitoring these monthly shifts allows stakeholders to identify whether the current trajectory is a temporary lull or a signal for necessary policy reforms to restore the state to its former status as a leader in global innovation.

Discussion:

In December, the Connecticut inventionINDEX scored a negative sentiment which was higher than the previous year’s average and outperformed 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 Connecticut office provides R&D tax credit consulting and advisory services to Bridgeport, New Haven, Stamford, Hartford, Waterbury, Norwalk, Danbury, New Britain, Bristol and Meriden.

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.