ILLINOIS INVENTIONINDEX | DECEMBER 2025

December 2025: 1.14% (C+ grade)

Illinois inventionINDEX December 2025: 1.14% (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).

Illinois inventionINDEX Scores – Last 12 months

The December 2025 Illinois inventionINDEX score of 1.14 percent with a C+ rating marks a period of stability following a year of significant fluctuations. While this performance is identical to the November results, it reflects a decline from the mid-year peak of 1.75 percent recorded in July 2025. When viewed against the broader 60-month historical data, the current score sits within a moderate range, avoiding the critical lows of 2023 but remaining well below the exceptional performance levels seen in previous years. This consistency suggests a cooling period for innovation metrics after a more volatile second half of 2024 and a productive start to 2025.

A longitudinal review reveals that the index has experienced substantial volatility over the last five years, with the standout peak occurring in October 2023 at a remarkable 3.00 percent. Historically, the index often oscillates between the B and C rating tiers, though it has reached the prestigious A+ rating on multiple occasions, such as in March 2022 and January 2024. The current C+ rating indicates that while the state inventive output remains steady, it is currently lacking the momentum required to break back into the top-tier performance levels. This current stagnation is preferable to the rare but concerning dips into the F category, such as the 0.43 percent score seen in July 2023, yet it highlights a need for renewed stimulus in the research and development sectors.

When the inventionINDEX reaches the higher grades of A or B, the implications for the regional economy are predominantly positive. High scores typically signal a robust environment for intellectual property creation, increased venture capital interest, and a thriving ecosystem for technology startups. Such ratings suggest that academic institutions and private enterprises are successfully collaborating to bring new technologies to market, which in turn fosters high-quality job growth and attracts top-tier talent to the area. A score closer to the 2.00 percent threshold represents a state of high productivity where innovation acts as a primary driver of economic resilience and competitive advantage.

Conversely, lower scores in the C, D, or F ranges carry negative implications for long-term economic health. A persistent stay in the lower tiers can indicate a contraction in research funding, a loss of competitive edge, or a regulatory environment that may be stifling creative output. When the index falls below the 1.00 percent threshold, as it did in October 2025, it serves as a warning of potential stagnation in the pipeline of new products and services. To ensure future prosperity, it is essential for stakeholders to monitor these downward trends closely, as a sustained period of low scores could lead to a brain drain where innovators seek more supportive environments elsewhere, ultimately weakening the state’s position as a hub for progress.

Discussion:

In December, the Illinois 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.

Swanson Reed’s Illinois office provides R&D tax credit consulting and advisory services to Chicago, Aurora, Rockford, Joliet, Naperville, Springfield, Peoria, Elgin, Waukegan, Champaign, Bloomington, Decatur, Evanston, Des Plaines, Berwyn, Wheaton, Carbondale, Mount Prospect, Oak Lawn and Skokie.

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.