DELAWARE INVENTIONINDEX | DECEMBER 2025

December 2025: 1.37% (B- grade)

Delaware inventionINDEX December 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).

Delaware inventionINDEX Scores – Last 12 months

The Delaware inventionINDEX concludes the sixty-month historical period ending in December 2025 with a score of 1.37 percent, securing a B- rating. This performance represents a significant maturation of the index when compared to the volatility observed at the beginning of the decade. In early 2021 and throughout much of 2022, the index frequently struggled to maintain positive momentum, dipping into the F rating category multiple times and reaching a historical low of negative 0.13 percent in December 2021. The current position indicates a more resilient and established environment for intellectual property and innovation than the precarious landscape seen four years ago.

A longitudinal analysis of the data reveals several peaks that have defined the upper boundaries of the index. The high-water mark of 2.03 percent achieved in April 2025 remains the primary benchmark for success, representing a sharp contrast to the 0.81 percent recorded only five months earlier in November 2024. While the year-end 2025 score of 1.37 percent is a moderation from the mid-year peak of 1.76 percent in July, it remains substantially higher than the scores from the first half of 2023, where the index languished near 0.10 percent. This gradual elevation of the scoring floor suggests that the regional innovation ecosystem has developed a more consistent output over time.

Higher grades within the Delaware inventionINDEX, specifically those reaching the A and B tiers, offer several positive outcomes for the economic and scientific community. Such scores typically reflect an increase in patent filings, robust venture capital activity, and a high rate of successful technology transfers. When the index performs at these elevated levels, it signals to investors and global partners that the region is a leading hub for creative development. This high-grade environment fosters a virtuous cycle where the arrival of top-tier talent and increased funding further stimulates the metrics that drive the index upward.

Conversely, a transition toward lower scores in the D or F ranges carries serious negative implications for long-term growth. Low ratings often indicate a stagnation in research and development or a failure to capitalize on emerging scientific trends. Such periods can lead to a decrease in competitive advantage and may prompt a migration of intellectual capital to more vibrant markets. The historical data from 2021 and 2022 serves as a reminder of the fragility of innovation cycles, emphasizing that maintaining the index above the one percent threshold is vital for preventing the erosion of the technological base and ensuring sustained economic relevance.

Discussion:

In December, the Delaware inventionINDEX scored a positive sentiment which was higher than the previous year’s average and outperformed the downward trend for the year. This is in contrast 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 Delaware office provides R&D tax credit consulting and advisory services to Wilmington, Dover, Newark, Middletown and Smyrna.

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.