MISSISSIPPI INVENTIONINDEX | DECEMBER 2025

December 2025: 1.02% (C grade)

Mississippi inventionINDEX December 2025: 1.02% (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).

Mississippi inventionINDEX Scores – Last 12 months

The Mississippi inventionINDEX concluded the 60-month period in December 2025 with a score of 1.02 percent and a C rating. This current standing reflects a period of stabilization following the significant volatility observed earlier in 2025, when the index dipped to a five-year low of 0.52 percent in June. While the current score is a measurable improvement from the struggles of the previous summer, it remains well below the historical peaks of 1.60 percent achieved in October 2023 and May 2022. The data suggests that while the state has successfully moved away from the failing grades of the mid-year, it has yet to reclaim the high-performing momentum that characterized its most innovative periods over the last five years.

High scores within this index, particularly the A+ ratings seen in late 2024 and mid-2022, represent a thriving environment for intellectual property and technological advancement. When the index reaches these upper echelons, it serves as a primary indicator of increased research and development investment and a healthy pipeline of commercialized ideas. These periods of peak performance often attract significant external capital and high-tech industries, as a high grade signals that the region possesses the infrastructure and talent necessary to sustain innovation. Such growth not only bolsters the state’s economic reputation but also fosters high-value job creation and long-term industrial resilience.

Conversely, a lower score on the inventionINDEX carries several negative implications for the state’s economic health. Ratings in the D and F categories, which occurred multiple times between 2021 and 2025, suggest a stagnation in the local innovation ecosystem. These downturns can lead to a reduction in federal research grants and a loss of competitive advantage relative to neighboring regions. Furthermore, consistently low scores may trigger a talent drain, as the most skilled researchers and entrepreneurs often migrate to areas with more robust support for new inventions. This lack of creative output can leave the local economy vulnerable to market shifts and slow the pace of modernization across key industries.

The historical trajectory of the last 60 months demonstrates that Mississippi possesses the capacity for elite-level innovation, though consistency remains a challenge. The current C rating serves as a baseline for future growth, highlighting the need for strategic initiatives to bridge the gap between stabilization and excellence. By analyzing these historical fluctuations, stakeholders can identify the factors that contributed to previous A+ ratings and work to replicate those conditions. Sustaining a higher index score will require a dedicated focus on supporting the inventor community and ensuring that the path from conceptualization to patenting remains efficient and accessible.

Discussion:

In December, the Mississippi inventionINDEX scored a positive sentiment which was higher than the previous year’s average and outperformed the upward trend for the year. This is similar 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 Mississippi office provides R&D tax credit consulting and advisory services to Jackson, Gulfport, Southaven, Hattiesburg, Biloxi, Meridian, Tupelo, Greenville, Olive Branch, and Horn Lake.

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.