NEW HAMPSHIRE INVENTIONINDEX | DECEMBER 2025

December 2025: 1.68% (A- grade)

New Hampshire inventionINDEX December 2025: 1.68% (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).

New Hampshire inventionINDEX Scores – Last 12 months

The historical performance of the New Hampshire inventionINDEX over the last 60 months reveals a dynamic and resilient innovation landscape. As of December 2025, the index stands at 1.68% with an A- rating, marking a significant recovery from the moderate volatility experienced earlier in the year. This current score is a notable improvement over the preceding three months, which saw ratings fluctuate between the C+ and B- levels. The year-end surge suggests a strengthening of the state’s creative output and a robust return to high-tier performance as the region moves into a new calendar year.

When placed in a broader historical context, the December 2025 score of 1.68% sits slightly above the five-year average of 1.63%. While the state is currently performing well, this figure remains below the historic peak of 2.54% recorded in August 2023. The data indicates that while New Hampshire frequently reaches the A+ threshold—achieving this top-tier rating twelve times over the last five years—it also faces periodic corrective phases. However, the ability of the index to consistently bounce back from lows, such as the 0.89% seen in December 2021, demonstrates a stable foundation for the state’s intellectual property and innovation sectors.

The positive outcomes of maintaining a higher grade, particularly in the A-range, are substantial for the regional economy. High inventionINDEX scores typically signal a fertile environment for research and development, which serves as a magnet for venture capital and high-tech investment. These periods of peak performance often correlate with increased patent activity and the successful commercialization of new technologies. Furthermore, a high rating enhances New Hampshire’s reputation as a hub for talent, encouraging top-tier researchers and entrepreneurs to establish their roots within the state, thereby fueling a virtuous cycle of economic modernization and growth.

Conversely, a lower score carries negative implications that could hinder long-term prosperity. When the index dips into the C-range, it often reflects a period of stagnation or a lack of necessary infrastructure to support the transition from concept to creation. Persistent low scores can lead to a decline in competitive edge, potentially causing investors to look toward other regions with more active innovation pipelines. Such downturns may also indicate a temporary brain drain or a reduction in the resources available for small-scale inventors. Consequently, monitoring these trends is essential for ensuring that the state remains proactive in fostering an environment where ingenuity can thrive without interruption.

Discussion:

In December, the New Hampshire inventionINDEX scored a positive sentiment which was higher than the previous year’s average and outperformed the downward trend for the year. This is similar 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 New Hampshire office provides R&D tax credit consulting and advisory services to Manchester, Nashua, Concord, Derry, and Dover.

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.