NEVADA INVENTIONINDEX | DECEMBER 2025

December 2025: 1.28% (C grade)

Nevada inventionINDEX December 2025: 1.28% (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).

Nevada inventionINDEX Scores – Last 12 months

The Nevada inventionINDEX concluded December 2025 with a score of 1.28% and a C rating, positioning the state in a moderate territory compared to the volatility of the last five years. This final figure for 2025 represents a notable recovery from the lower 0.68% and 0.74% scores recorded in November and October, though it falls short of the 2.05% B-rated peaks achieved earlier in July and September. When viewed against the 60-month historical backdrop, the current score suggests a period of stabilization. While the index has moved away from the extreme lows seen in 2022, it remains well below the exceptional 3.85% A+ peak of February 2024, indicating that the state is currently operating at a steady but average level of innovative output.

A higher inventionINDEX score, particularly when reaching the A or B ranges, signifies a thriving environment for intellectual property and economic advancement. Historically, when Nevada reached scores such as the 2.25% seen in July 2024 or the 3.85% in early 2024, it reflected a surge in research, development, and entrepreneurial confidence. These elevated ratings are indicative of a robust pipeline where new ideas are successfully transitioned into the marketplace, attracting venture capital and high-skilled talent to the region. High scores are essential for long-term economic health, as they suggest that the state is not only generating new concepts but is also providing the infrastructure necessary to sustain a competitive edge in a global economy.

In contrast, lower scores and ratings in the D range carry significant negative implications for the state’s economic momentum. For instance, the -0.06% dip in January 2022 and the frequent sub-0.50% scores seen throughout late 2022 and early 2023 point to periods of contraction or stagnation in innovation. Such low ratings often signal that inventors are facing hurdles, whether through a lack of funding, regulatory bottlenecks, or a decline in patent filings. When the index remains consistently low, it risks a “brain drain” effect where local talent may seek more supportive ecosystems elsewhere, potentially slowing the diversification of the Nevada economy and leaving it more vulnerable to market shifts.

Looking ahead, the current 1.28% score provides a stable foundation from which Nevada can aim for higher growth in the coming year. The historical data shows a pattern of resilience, with the index often rebounding from C and D ratings to reach more favorable B-level performance within a few months. To push the index back toward the superior ratings seen in early 2024, continued support for the startup ecosystem and strategic investments in emerging technologies will be vital. Maintaining an upward trend from this middle-ground position is necessary to ensure that Nevada continues to evolve as a hub for creativity and technical achievement.

Discussion:

In December, the Nevada 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 considerable 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 Nevada office provides R&D tax credit consulting and advisory services to Las Vegas, Henderson, Reno, North Las Vegas, Sparks, Carson City, Fernley, Elko, Mesquite, and Boulder City.

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.