WEST VIRGINIA INVENTIONINDEX | DECEMBER 2025

December 2025: 1.03% (C grade)

West Virginia inventionINDEX December 2025: 1.03% (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).

West Virginia inventionINDEX Scores – Last 12 months

The West Virginia inventionINDEX for December 2025 stands at 1.03 percent, resulting in a C rating. This performance represents a slight decline from the preceding month of November 2025, where the index reached 1.24 percent with a B- rating. When examining the full 60-month horizon, the current score reflects a period of stabilization following the more volatile fluctuations observed earlier in the year. The index has historically navigated a wide range of values, and the current C rating places the state in a moderate position that neither reflects the peak innovation seen in previous years nor the deepest troughs of inactivity.

Comparing these recent figures to historical benchmarks reveals a trajectory marked by significant peaks, such as the 2.91 percent recorded in July 2022. During that period, the state achieved an A+ rating, a milestone that has been difficult to replicate with consistency. While 2021 and 2024 saw frequent surges into the A+ and A- categories, 2025 has been characterized by more frequent descents into the F and D+ ranges, including a low of 0.41 percent in May. The transition from the high-performing environment of late 2024 to the current moderate standing suggests a cooling of the inventive momentum that previously propelled the index toward its upper limits.

A higher grade on the inventionINDEX serves as a powerful indicator of economic vitality and intellectual property growth within the state. When the rating climbs toward the A range, it signals an environment rich in research, development, and entrepreneurial spirit. These elevated scores often correlate with increased venture capital interest, higher rates of patent filings, and the cultivation of a robust technological infrastructure. A strong index performance reassures stakeholders that West Virginia is fostering a competitive landscape capable of attracting top-tier talent and driving long-term industrial modernization.

Conversely, lower scores such as the F ratings seen periodically throughout the last five years present several challenges for the regional economy. A suppressed index suggests a potential stagnation in creative output or a lack of necessary resources to transition ideas into viable inventions. Sustained periods of low ratings can lead to a loss of competitive advantage relative to neighboring regions, potentially resulting in a talent drain as innovators seek more supportive ecosystems elsewhere. To move beyond the current C rating, focus must remain on strengthening the foundations of the state’s innovation pipeline to ensure a return to the higher tiers of performance observed in the past.

Discussion:

In December, the West Virginia inventionINDEX scored a positive sentiment which was higher than the previous year’s average and outperformed the upward trend for the year. This is similar to the prior 12 months, which experienced an 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 West Virginia office provides R&D tax credit consulting and advisory services to Charleston, Huntington, Morgantown, Parkersburg, and Wheeling.

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.