NEBRASKA INVENTIONINDEX | DECEMBER 2025

December 2025: 1.13% (B grade)

Nebraska inventionINDEX December 2025: 1.13% (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).

Nebraska inventionINDEX Scores – Last 12 months

The December 2025 Nebraska inventionINDEX score of 1.13%, yielding a B rating, reflects a period of stabilization and recovery for the state’s innovative landscape. When examined against the sixty-month historical trajectory, this figure represents a significant rebound from the challenges faced earlier in the year, particularly the February low of 0.82%. While the current score does not reach the heights of the 1.48% peak seen in June 2021, it maintains a position above the median for the five-year period. This upward movement suggests that Nebraska has successfully navigated recent economic or industrial shifts, transitioning from a period of relative stagnation in early 2025 into a more robust phase of intellectual and creative output.

Comparing the most recent year-end results to previous cycles reveals a pattern of cyclical fluctuation. The December 2025 score of 1.13% matches exactly with the December 2022 performance, though it falls short of the 1.23% and 1.25% year-end marks seen in 2024 and 2020, respectively. Throughout the last five years, the state has frequently achieved A-grade status, particularly in early 2024 and late 2023, where scores consistently exceeded 1.30%. The recent shift back toward a B rating signifies a clear recovery from the D and F ratings that plagued the first quarter of 2025, indicating that the foundational elements of the invention ecosystem are regaining their strength and consistency.

Achieving and maintaining a higher grade on the inventionINDEX, such as the A+ ratings observed in mid-2021 and early 2024, yields profound positive outcomes for the regional economy. High scores serve as a signal to investors and talent that Nebraska possesses a fertile environment for research, development, and the commercialization of new ideas. Such a climate fosters job creation in high-tech sectors, encourages capital infusion, and strengthens the state’s competitive position on a national scale. A robust score suggests that the synergy between academic institutions, private enterprises, and government support is functioning optimally, leading to a sustainable cycle of growth and modernization.

Conversely, a decline in the index toward the lower C or D tiers, as seen in various months during 2022 and early 2025, carries concerning implications for long-term prosperity. A lower score often indicates a reduction in patent filings, a slowdown in startup activity, or a lack of necessary infrastructure to support burgeoning innovators. If these downward trends persist, the region risks losing its most talented professionals to more innovative hubs, leading to a loss of human capital that can take years to reverse. It is therefore critical to monitor these metrics closely and address the underlying causes of volatility to ensure that the state remains a leader in progress rather than falling into a cycle of industrial obsolescence.

Discussion:

In December, the Nebraska 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 Nebraska office provides R&D tax credit consulting and advisory services to Omaha, Lincoln, Bellevue, Grand Island, and Kearney.

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.