ALASKA INVENTIONINDEX | DECEMBER 2025

December 2025: 0.81% (D+ grade)

Alaska inventionINDEX December 2025: 0.81% (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).

Alaska inventionINDEX Scores – Last 12 months

The Alaska inventionINDEX concluded the 2025 calendar year with a score of 0.81%, resulting in a D+ rating. This final figure for the year reflects a recurring pattern of volatility that has characterized the index over the last 60 months. When compared to the mid-year performance, which saw a brief period of stability at 1.17% during the late summer months, the year-end results suggest a slight loss of momentum. This transition from November’s 1.17% to December’s 0.81% highlights a persistent challenge in maintaining consistent upward growth within the region’s innovation ecosystem.

When viewed against the broader historical data, the current index remains significantly below its peak potential. In 2021, the index achieved its highest recorded milestones, reaching a notable 2.65% in both March and November. These periods of A+ ratings represent the historical gold standard for Alaskan inventive output over the five-year span. By comparison, the 2025 average sits well below these benchmarks, aligning more closely with the suppressed scores observed throughout 2022 and 2024. The disparity between the 2021 highs and the current low-tier ratings suggests that the factors driving peak innovation have become less influential in the current economic climate.

A higher grade on the inventionINDEX, such as the A+ ratings achieved in years past, signifies a robust and thriving environment for intellectual property and creative development. These elevated scores often correlate with increased venture capital interest, a surge in patent filings, and a stronger competitive position on the national stage. When the index reaches these heights, it demonstrates that the necessary infrastructure, funding, and talent are effectively aligned to foster new ideas. Such performance fosters economic diversification, creating a more resilient financial foundation that relies on knowledge-based assets rather than traditional industry cycles.

Conversely, the recent prevalence of D+ and F ratings presents several negative implications for long-term growth. Consistent low scores indicate a stagnation in research and development, which can lead to a loss of talent as local innovators seek more supportive environments elsewhere. A lower rating often reflects a lack of investment confidence, potentially causing a feedback loop where reduced funding leads to even lower inventive output. To reverse this trend and move toward the higher percentages seen in early 2021, a concerted effort is required to revitalize the specific elements of the ecosystem that previously yielded such exceptional results.

Discussion:

In December, the Alaska inventionINDEX scored a negative sentiment which was lower than the previous year’s average and underperformed the upward trend for the year. This is in contrast 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 Alaska office provides R&D tax credit consulting and advisory services to Anchorage, Fairbanks, Juneau, Sitka and Wasilla.

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.