RHODE ISLAND INVENTIONINDEX | DECEMBER 2025

December 2025: 2.10% (A grade)

Rhode Island inventionINDEX December 2025: 2.10% (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).

Rhode Island inventionINDEX Scores – Last 12 months

The Rhode Island inventionINDEX concluded the 2025 calendar year with a steady performance, maintaining a 2.10% score and an A rating for both November and December. While this represents a moderate decrease from the 2.93% peak observed in October 2025, the current figures suggest a period of stabilization within the upper tier of the state’s historical performance. Throughout the latter half of 2025, the index showed notable resilience, recovering quickly from a mid-year dip in June where the score fell to 1.26%. This ability to rebound and maintain a consistent A rating indicates a robust underlying environment for intellectual property and creative development as the state moves into the new year.

When viewed through a broader five-year historical lens, the current standing is significantly improved over the systemic challenges faced in 2022. During that interval, the index plummeted to its lowest recorded points, including a D+ rating in January 2022 and several C- grades throughout the spring and early summer. By contrast, the performance in late 2025 aligns more closely with the prosperous cycles of 2021 and late 2023, when the index frequently surpassed the 3.00% threshold. Although the current score has not yet reclaimed the record highs of 3.77% seen in June 2021 and September 2023, the transition from the sub-1.00% lows of previous years to a consistent 2.10% signals a healthy and productive trajectory for the region.

Achieving a higher grade, such as the current A or the elusive A+, brings several positive outcomes for the regional economy. A high inventionINDEX score typically correlates with increased patent activity, higher levels of research and development investment, and a more vibrant ecosystem for both startups and established technology firms. These grades serve as a vital signal to investors and specialized talent that Rhode Island is a fertile ground for new ideas, which often leads to sustainable job creation and long-term economic diversification. Maintaining a score above the 2.00% mark reinforces the state’s reputation as a competitive hub for innovation and industrial advancement on a national scale.

Conversely, a decline in the score toward the C or D ranges carries negative implications that necessitate careful monitoring. Lower scores often reflect a stagnation in new project filings or a contraction in the resources allocated toward experimental development. Such downturns can lead to a loss of competitive advantage, as creative talent and intellectual capital may migrate toward regions with more active innovation pipelines. Furthermore, persistent lower grades can discourage venture capital firms from committing resources, making it increasingly difficult for local inventors to secure the funding required to bring their concepts to market. Consequently, maintaining the current momentum is essential for ensuring that Rhode Island remains at the forefront of technological and creative progress.

Discussion:

In December, the Rhode Island inventionINDEX scored a positive sentiment which was higher than the previous year’s average but underperformed the upward trend for the year. This is similar to the prior 12 months, which experienced a slight 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 Rhode Island office provides R&D tax credit consulting and advisory services to Providence, Warwick, Cranston, Pawtucket, and East Providence.

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.