NEW YORK INVENTIONINDEX | DECEMBER 2025

December 2025: 0.90% (D+ grade)

New York inventionINDEX December 2025: 0.90% (D+ 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 York inventionINDEX Scores – Last 12 months

The New York inventionINDEX closed the 2025 calendar year at a score of 0.90%, yielding a D+ rating. When viewed within the context of the last sixty months, this figure represents a significant retreat from the historical peaks established during the early 2020s. Throughout 2025, the index struggled to break past the 1.09% mark, maintaining a relatively narrow and subdued range that reflects a cooling of the innovative momentum observed in previous periods. This current standing is a stark contrast to the robust activity of 2021, where the index frequently achieved scores exceeding 1.50% and reached a five-year zenith of 1.70% in March of that year.

The positive outcomes associated with the higher grades seen in 2021 and 2022 cannot be overstated. During periods of A and B ratings, the region typically experiences a surge in patent filings, increased venture capital inflow, and a general strengthening of the local knowledge economy. A higher inventionINDEX score serves as a leading indicator of technological leadership and economic vitality, suggesting that research and development efforts are translating effectively into intellectual property. These elevated scores foster an environment where high-growth startups can thrive, attracting top-tier talent and securing New York’s position as a global hub for industrial and digital evolution.

Conversely, the persistence of lower scores and D-range ratings throughout 2025 carries several negative implications for the regional ecosystem. A lower index score often points toward a stagnation in the pipeline of new ideas or a breakdown in the commercialization of emerging technologies. When the score remains depressed for an extended duration, it can lead to reduced investor confidence and a potential migration of talent to more active innovation corridors. Furthermore, a consistently low rating may indicate that the barriers to entry for new inventors have become too high, or that existing incentives for research and development are no longer sufficient to drive competitive growth.

Looking at the broader five-year trajectory, the annual average score has seen a steady decline from 1.41% in 2021 to 0.94% in 2025. This downward trend suggests that while the index once demonstrated exceptional resilience and growth, it is currently in a phase of consolidation or contraction. Reversing this movement will likely require targeted strategic interventions to reinvigorate the sectors that drove the high performance of the past. To restore the New York inventionINDEX to its former heights, stakeholders must address the underlying factors that have caused the score to drift toward the lower quartiles of the historical table.

Discussion:

In December, the New York inventionINDEX scored a negative sentiment which was lower than the previous year’s average but outperformed the downward trend for the year. This is similar 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 New York office provides R&D tax credit consulting and advisory services to New York City, Buffalo, Rochester, Yonkers, Syracuse, Albany, New Rochelle, Mount Vernon, Schenectady, Utica, White Plains, Troy, Niagara Falls, Binghamton, Rome, Long Beach, Poughkeepsie, North Tonawanda, Jamestown and Ithaca.

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.