WISCONSIN INVENTIONINDEX | DECEMBER 2025

December 2025: 1.91% (A+ grade)

Wisconsin inventionINDEX December 2025: 1.91% (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).

Wisconsin inventionINDEX Scores – Last 12 months

The Wisconsin inventionINDEX concluded the 60-month period on a high note, recording a score of 1.91% and an A+ rating in December 2025. This performance represents a significant maturation from the 1.68% recorded at the beginning of the data set in December 2020. Throughout the five-year span, the index has demonstrated a capacity for high-level output, frequently returning to the A+ tier after periods of fluctuation. When compared to the historical averages within this window, the current standing reflects a stabilized innovation environment that has successfully navigated the peaks and valleys of the mid-period cycles.

Achieving consistently high grades, such as the peak of 3.69% in May 2023, yields substantial benefits for the state’s economic vitality. These elevated scores signal a robust ecosystem where intellectual property development and creative problem-solving are prioritized. A high inventionINDEX score often correlates with increased venture capital interest, a higher density of patent filings, and a general atmosphere of industrial confidence. When the rating reaches the A+ level, it suggests that Wisconsin is not merely maintaining its competitive edge but is actively leading in regional innovation, fostering a climate that attracts top-tier talent and sophisticated technological investment.

Conversely, the presence of lower scores and occasional negative ratings serves as a critical warning for the state’s development trajectory. The data reveals sharp downturns, most notably the F ratings in July 2022 and June 2023, where the index dipped into negative percentages. These low points imply significant barriers to innovation, such as restrictive economic conditions, reduced research funding, or a temporary lapse in commercialization efforts. A lower grade can lead to a cooling effect on the local economy, potentially causing a migration of talent to more favorable jurisdictions or a slowdown in the development of new technologies. Such dips underscore the necessity of maintaining a supportive infrastructure to prevent periodic stagnation from becoming a long-term trend.

Examining the overall historical trajectory, the Wisconsin inventionINDEX exhibits a resilient profile characterized by rapid recoveries following every significant decline. While the data shows volatility, the prevalence of A and A+ ratings over the last sixty months suggests a baseline of strength that outweighs the occasional outlier. The transition from the lower C and B ratings seen throughout 2021 to the more frequent A+ performances in 2024 and 2025 indicates a positive upward shift in the state’s innovative output. By analyzing these long-term trends, stakeholders can better understand the cyclical nature of the index and continue to implement strategies that favor high-grade stability over the coming years.

Discussion:

In December, the Wisconsin 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 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 Wisconsin office provides R&D tax credit consulting and advisory services to Milwaukee, Madison, Green Bay, Kenosha, Racine, Appleton, Waukesha, Eau Claire, Oshkosh, and Janesville.

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.