IOWA INVENTIONINDEX | DECEMBER 2025
December 2025: 1.94% (A+ grade)
Iowa inventionINDEX December 2025: 1.94% (A+ 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).
Iowa inventionINDEX Scores – Last 12 months
| Month | inventionINDEX Score |
| December 2025 | 1.94% |
| Nov 25 | 1.61% |
| Oct 25 | 1.54% |
| Sep 25 | 1.48% |
| Aug 25 | 1.15% |
| Jul 25 | 1.71% |
| Jun 25 | 1.61% |
| May 25 | 1.50% |
| Apr 25 | 1.96% |
| Mar 25 | 1.24% |
| Feb 25 | 1.28% |
| Jan 25 | 1.10% |
| Dec 24 | 1.27% |
The Iowa inventionINDEX concluded the 60-month period on a remarkably strong note, reaching a score of 1.94% and an A+ rating in December 2025. This performance represents a significant peak, nearly matching the five-year high of 1.96% established in April 2025. When compared to the preceding months, the index showed a clear and aggressive recovery from the mid-year dip in August 2025, where the score sat at 1.15%. The final quarter of 2025 demonstrated a steady climb from 1.54% in October to the year-end high, suggesting a robust momentum in the state’s innovation sector as it moved into the new year.
Taking a broader historical perspective, the current standing is substantially improved over previous year-end figures. For instance, December 2024 saw a much lower score of 1.27% with a B+ rating, while December 2023 yielded only 1.07% and a C+ rating. The data reveals that 2025 was a standout year for growth, particularly when contrasted with the high volatility seen in 2022, which included a five-year low of 0.88% in July. The transition from the frequent C and B ratings characteristic of 2021 and 2024 to the consistent A+ ratings of late 2025 indicates a period of unprecedented expansion and stability in the regional innovation landscape.
The positive outcomes associated with these higher grades are multifaceted, reflecting a healthy and vibrant economic environment. An A+ rating signifies that the state is effectively fostering intellectual property development, attracting venture capital, and encouraging high-tech entrepreneurship. When the index reaches these heights, it often correlates with increased job creation in research-intensive industries and a greater capacity for local businesses to compete on a global scale. This elevated performance serves as a powerful signal to investors and talent alike that the region possesses the necessary infrastructure and creative energy to lead in technological advancement.
On the other hand, the negative implications of lower scores, such as the D+ and C- ratings observed in earlier years, highlight periods of potential economic stagnation. A lower score typically suggests a slowdown in the patent pipeline or a lack of resources for moving inventions from the laboratory to the marketplace. These downturns can lead to a loss of competitive advantage and may prompt a migration of skilled workers to more innovative regions. By analyzing these historical fluctuations, it becomes evident that maintaining a high inventionINDEX score is essential for preventing economic contraction and ensuring that the state remains a viable hub for future breakthroughs.
Discussion:
In December, the Iowa inventionINDEX scored a positive 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 Iowa office provides R&D tax credit consulting and advisory services to Des Moines, Cedar Rapids, Davenport, Sioux City, Iowa City, Waterloo, West Des Moines, Ames, Council Bluffs and Dubuque.
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.
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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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